Apple 2.0

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Apple beats on sales of $35.3B

July 23, 2013: 4:16 PM ET

iPhones sales were strong; iPad sales disappointed.

Screen Shot 2013-07-23 at 4.49.55 PMFORTUNE -- Apple beat Wall Street's lowered expectations on both the top and bottom lines Tuesday, reporting earnings of $7.47 per share on sales of $35.3 billion.

Apple (AAPL) closed down $7.32 (-1.72%) for the day, as if the Street had been tipped off that there was bad news coming. But it bounced nicely in after hours trading.

"We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," said Tim Cook, Apple's CEO.

The big disappointment was iPad sales. Without a new model to drive purchases, Apple sold only 14.6 million iPads -- 2.4 million fewer than it sold in the same quarter last year.

"Since we continue to view iPhones as the most important part of the story," Piper Jaffray's Gene Munster told clients, "we view the overall report as slightly better than expected."

The numbers:

Sales: $ 35.3 billion, up 0.8% year over year. A June quarter record. 
Net profit: 
$ 6.9 billion, down 21.6%
EPS:
$7.47, down 19.8%
iPhone:
31.2 million units, up 20% 
iPod:
4.57 million units, down 32.3% 
iPad: 
14.6 million units, down 14.3%
Mac: 
3.8 million units, down 6.6%
iTunes/Software/Services: $3.99 billion, up 24.7%
Gross margin: 36.9%
Revenue guidance: $34-$37 billion
Gross margin guidance: 36%-37%
Cash and marketable securities: $146.6 billion, up from $145 billion

The conference call has begun. Tune in here.

Link: Apple's press release.

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About This Author
Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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