By Dow Jones Business News, October 28, 2013, 05:15:00 PM EDT
Apple Inc. ( AAPL ) sold 33.8 million iPhones in the September quarter, up 26% from a year earlier, but not enough to
prevent a third consecutive quarterly decline in earnings.
The Cupertino, Calif., tech giant reported net income for the fourth fiscal quarter ended Sept. 28 of $7.51 billion,
or $8.26 a share, down from $8.22 billion, or $8.67 a share, a year earlier. Revenue was $37.47 billion, compared with $
35.97 billion last year.
Analysts on average had expected Apple to report a profit of $7.96 a share on revenue of $36.9 billion, according to
surveys by Thomson Reuters.
Analysts had expected Apple to sell about 34.5 million iPhones. Apple released two new iPhones, the 5S and 5C, near
the end of the quarter.
The company sold 14.1 million iPads, compared with analyst expectations of about 15 million devices. Apple sold 14.6
million iPads in its third quarter.
Apple projected revenue for its first fiscal quarter, which includes the holiday shopping season, of $55 billion to $
58 billion, compared with average analyst expectations of $55.7 billion. The company also said it expects gross margin
of 36.5% to 37.5%, under the 37.8% analysts were expecting.
The company's results, and more importantly its guidance, give the clearest indications yet of the health of its
business. Apple has been strategically expanding its product lines over the past couple of years, offering multiple
versions of the iPhone and iPad.
The iPad Mini, a smaller cousin to the standard-sized iPad, has become the world's biggest-selling tablet, but the
iPhone 5C, a lower-end companion to the iPhone 5S, doesn't appear to have become as popular. Earlier this month, The
Wall Street Journal reported Apple had reduced orders to assemblers for its iPhone 5C, while increasing orders for the
5S. The 5C is plentiful at many retailers while the 5S is often hard to find.
Apple announced new iPads and computers at an event last week, and plans to release its new iPad Air tablet on Nov. 1.
It isn't taking pre-orders for the device, but investors will be watching to see how much demand will materialize for
Apple's shares have been climbing in recent months after plunging from an all-time high just above $700 in September
2012. The company's shares slid 3.8% to $512 in after-hours trading.
Write to Ian Sherr at firstname.lastname@example.org
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