Apple result: record June quarter for iPhone sales, but profit swoons

A mixed June result for Apple has the company reporting sales of 31.2 million iPhones, a record for the June quarter.

The total compares well to the year-ago quarter's 26 million, but less so to the prior quarter's 37.4 million as the company continued to enjoy a surge from the iPhone 5 launch.

The 31.2 million tally was five million more iPhones that analysts had expected, according to the Wall Street Journal (which is live blogging CEO Tim Cook's investor call), but the average selling price dropped significantly to $US580 from $US624 a year ago.

Apple also sold 14.6 million iPads during the June quarter, compared to 17 million in the year-ago quarter.

The company sold 3.8 million Macs, compared to 4 million in the year-ago quarter.

After a sustained period of high growth, revenue was flat at $US35.3 billion against the year-ago quarter's $US35 billion.

Net profit was $US6.9 billion, down on the year-ago quarter's $US8.8 billion.

The dip was less than expected and Apple shares [NAS:AAPL] rallied 5% afterhours after falling 1.72% in regular trading.

RAW DATA: Apple press release

Apple Reports Third Quarter Results
Sales of 31 Million iPhones Set New June Quarter Record

CUPERTINO, California—July 23, 2013—Apple® today announced financial results for its fiscal 2013 third quarter ended June 29, 2013. The Company posted quarterly revenue of $35.3 billion and quarterly net profit of $6.9 billion, or $7.47 per diluted share.

These results compare to revenue of $35 billion and net profit of $8.8 billion, or $9.32 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent compared to 42.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarter’s revenue.

The Company sold 31.2 million iPhones, a record for the June quarter, compared to 26 million in the year-ago quarter. Apple also sold 14.6 million iPads during the quarter, compared to 17 million in the year-ago quarter. The Company sold 3.8 million Macs, compared to 4 million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock. The dividend is payable on August 15, 2013, to shareholders of record as of the close of business on August 12, 2013.

“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. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

“We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2013 fourth quarter:

• revenue between $34 billion and $37 billion
• gross margin between 36 percent and 37 percent
• operating expenses between $3.9 billion and $3.95 billion
• other income/(expense) of $200 million
• tax rate of 26.5%