FORTUNE -- The numbers are in, and they're surprisingly good. Stronger than expected iPhone sales seem to have boosted both the gross margin and the bottom line. iPad sales were a little weak, due largely to channel inventory changes. Mac sales were up and the iPod business, as expected, has pretty much collapsed. Apple press release.
In a separate press release, the company announced a 7 for 1 stock split, effective June 2, something that doesn't change the math but which should make the stock affordable for more investors. The board of directors also increased its share repurchase authorization to $90 billion (from $60 billion) and declared a dividend of $3.29 per common share, an increase of about 8%, payable on May 15.
"We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Tim Cook. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market."
"We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said outgoing CFO Peter Oppenheimer. "That brings cumulative payments under our capital return program to $66 billion."
Apple's (AAPL) share closed Wednesday at $524.75. They popped more than $40 in after hours trading.
A conference call with analysts is scheduled to begin at 5:00 p.m. ET, 3:00 p.m. PT. Click here: Listen to the Webcast.
Below: the average estimates of 41 analysts in Fortune's poll.
Sales: $43.78 billion
iPhones: 38.25 million units
iPads: 19.35 million
Macs: 4.09 million
iPods: 3.06 million
iTunes, software and services: $4.56 billion
Accessories: $1.40 billion
Gross margin: 37.8%
Below: Notes from the conference call.
"Powerful" is getting heavily re-tweeted, and the early reviews online are positive.
FORTUNE -- Two years after marketing VP Phil Schiller's outburst, the team doing Apple's (AAPL) TV advertising seems to be "feeling it" again.
The ad is available on YouTube.Philip Elmer-DeWitt - Apr 23, 2014 2:14 PM ET
The handmade marketplace has acquired Grand St., a commerce site for indie electronics.
FORTUNE -- Etsy, the operator of a handmade marketplace, has acquired Grand St. Grand St., which sells indie electronics online, had raised $1.3 million in seed funding from First Round Capital, Betaworks, Quotidian Ventures, Mesa+, and angel investors. Just two months ago, the company had positioned itself as the "Etsy for electronics." From my interview with CEO Amanda Peyton at MOREErin Griffith - Apr 23, 2014 2:14 PM ET
Exclusive content deal makes select programing available to Prime Instant Video users.
FORTUNE -- HBO fans take note: Amazon's Prime Instant Video is about to get better.
On Wednesday, Amazon (AMZN) announced a content licensing agreement with HBO that makes select HBO programming available to watch on Prime Instant Video starting May 21. The deal is the first streaming arrangement with a subscription service agreed to by the cable network.
The agreement includes older MOREJP Mangalindan, Writer - Apr 23, 2014 12:26 PM ET
The tech startup Piqora raises $7.7 million to help marketers find out.
By Heather Clancy
FORTUNE -- Fast-growing visual social networks like the digital scrapbook Pinterest, photo-sharing service Instagram, or microblogging site Tumblr -- where, if you'll pardon the pun, image is everything -- certainly can't boast the sheer visitor reach of Facebook with its more than 1.3 billion active monthly users.
But retailers and big consumer brands are flocking to them for MOREApr 23, 2014 11:02 AM ET
Learn-to-code site optimizes for the web, rather than recreating offline learning.
FORTUNE -- For a minute there in 2012 it seemed like the whole world might learn to code online, for free. It's easy (or so we were told): Just use one of the zillion new learn-to-code services that had cropped up, seemingly overnight. They varied in quality, cost, and coverage, but one making a lot of noise was Codecademy. The New York MOREErin Griffith - Apr 23, 2014 10:59 AM ET
With today's earnings expected to be ho-hum, does Apple have a surprise up its sleeve?
FORTUNE -- On Tuesday, Re/code's Walt Mossberg joined the parade of Apple (AAPL) watchers wondering whether the company has lost its innovative magic.
To Mossberg's credit, he points out that there was a six-year gap between the iPod and the iPhone, and that it's only been four years since Steve Jobs -- knowing his end was near -- pushed out the iPad.
Still, the operative metaphor of Mossberg's piece MOREPhilip Elmer-DeWitt - Apr 23, 2014 6:34 AM ET
Dutch royalty once shopped in the century-old fashion house where Apple now sells iPads.
FORTUNE -- Queen Emma of The Netherlands, who in 1879 married a man once described as "the greatest debauchee of the age," used to buy her gowns in the building that now houses Apple's (AAPL) retail presence in Amsterdam. So did her daughter, Queen Wilhelmina. And so did Wilhelmina's daughter, Queen Juliana.
In its heyday, the building Leo Hirsch erected on the Leidseplein to MOREPhilip Elmer-DeWitt - Apr 23, 2014 4:15 AM ET
The latest attempt at a digital wallet uses novel magnetic technology to imitate your debit, credit, and loyalty cards.
By Jason Cipriani
FORTUNE -- Imagine walking into a store, gathering some items you want to purchase and waving your smartphone across a the credit card terminal to pay. This scenario is not a reality that's fast approaching -- it's possible today. In recent years, a number of technology companies have started to subtly say: Forgo MOREApr 22, 2014 3:13 PM ET
App attacks, crimeware, skimmers, and other cybersecurity concerns for enterprise executives, per Verizon's latest data breach report.
FORTUNE -- It's that time of year again: Spring is in the air, Monarch butterflies are traveling north, and Verizon's (VZ) data breach report is making the rounds, freaking out already freaked-out chief information security officers around the globe.
The annual report compiles and analyzes more than 63,000 security incidents (as well as 1,300 confirmed data breaches) MOREMichal Lev-Ram, writer - Apr 22, 2014 11:20 AM ET
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