Apple reports strong revenue and income, record iPhone sales, but continued weak iPad sales
Company reports poorer iPad sales than year before for the third consecutive quarter, while iPhone sales reach 39.272 million units, up 20 percent
Apple reported its fourth quarter earnings this afternoon after the bell and recorded solid revenue and income. It also said it sold an astounding 38.272 million iPhones in the final quarter of its fiscal year.
As TNM readers know, this site tracks iPad sales most of all, as these effect the market for digital publications more than any other device category. There, the new was bad as Apple sold 12.316 million devices, a drop of 7 percent from the year prior, with revenue down 14 percent likely due to buyers buying the iPad mini or opting for older models. This is the third quarter in a row that Apple had failed to match or exceed the sales numbers from the same quarter in 2013.
Apple just last week held its iPad event and the consensus appeared to be that Apple did not introduce any new models that would drive consumers in droves to upgrade their tablets. The first quarter of last year, the holiday shopping season, was the last quarter when it felt like Apple had the tablet market all to itself as it introduced a retina model of its iPad mini – the company sold over 26 million iPads during the holiday shopping season last year.
But Apple certainly has no sales issues. Revenue came in at $42.1 billion, with a quarterly net profit of $8.5 billion.
“Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus,” Apple CEO Tim Cook said in the earnings announcement. “With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.”
Sales were pretty up up across the globe, with sales in the Americas up 17 percent, and up in Europe 19 precedent. Sales in China were essentially flat, due to the delay in launching the iPhone 6 there.
Mac sales were strong, with unit sales up 25 percent. iTunes/software sales were also up, but according the conference call, the vast majority of that was in the App Store, where sales were up 36 percent according to Apple CEO Tim Cook. (That means media sales were down, a not surprising fact considering the growth of streaming.)