Apple revenue growth slows, as does earnings; quarter, though, is a record for iPad sales
The earnings for Q1 for Apple showed Apple struggling to keep up its torrid pace of revenue growth. Revenue for the quarter, which included the holiday shopping season, total $57,594 billion, up 5.65 percent over the same quarter in 2012. Total operating income was $17.463 billion, net income as just over $13 billion, and just a shade less than that recorded in 2012.
As a result, Apple stock (as usual) is falling in after hours trading.
iPad sales in the quarter, which included the Christmas shopping season, were 26 million. That number is a new record for Apple, helped out by the new iPad mini retina model. To compare, Apple sold just over 3.2 million units its first quarter of sales in 2010. Since its launch in April of 2010, Apple has sold over 195 million iPads.
“We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”
Despite the happy talk of the press release, many analysts are expressing concern over iPhone sales, which came in at 51 million, another record. But growth in iPhone sales is moderating and many will be listening in to the conference call asking about new products, and Google’s acquisition of Nest.
Mac sales were a bright spot, and a bit of a surprise (to me). Mac sales were up 19 percent over a year ago.
But in all areas, Apple looks to be getting squeezed on margins. For instances, iPad sales were up 14 percent when looking at units, but only 7 percent in revenue.