On January 23, 2013, Apple posted their Q1 2013 earnings. Rumors have been flying around for some time that this wouldn’t be a great earnings report. The rumors weren’t exactly right, but they weren’t wrong either.
Apple made $13.1 billion in profit, with $54.5 billion in revenue (not bad…). In most cases, investors were expecting more.
BY THE NUMBERS
- 47.8 million iPhones sold this Quarter (Wall Street expected 48 million)
- 22.9 million iPads sold this Quarter (Wall Street expected 22-23 million)
- 4.1 million Mac sold (Wall Street expected 5 million)
- 12.7 million iPods (Wall Street expected 12 million)
In many cases they were close. But not close enough.
- Over half a billion iOS devices have been activated.
- iPhone sales in China have doubled year-over-year. The company posted $7.3 billion in revenue from the China region in Q1.
- As we knew, Apple had delays producing its new iMac, and Peter Oppenheimer says that “we believe our Mac sales would have been much higher absent these constraints.”
- Apple’s retail stores are averaging 23,000 visitors per week, a seven percent increase.
- The company didn’t specify its iPad mini sales, but Tim Cook said “we could not build enough iPad minis to come into a demand balance.”
- Apple says it has delivered 4 trillion notifications in Notification Center, and it has 200 million Game Center users.
- Tim Cook says that the Apple TV remains “an area of intense interest,” and that the company has sold over 2 million during the quarter — up almost 60 percent year-over-year.
Apple CEO, Tim Cook, had this to say:
“I see cannibalization as a huge opportunity for us,” Cook said. “Our core philosophy is to never fear cannibalization. If we don’t do it, someone else will. We know that iPhone has cannibalized some of our iPod business. That doesn’t worry us. We know that iPad will cannibalize some Macs. But that’s not a concern. On iPad in particular, we have the mother of all opportunities because the Windows market is much, much larger than the Mac market. It is clear that it is already cannibalizing some. I still believe the tablet market will be larger than the PC market at some point. You can see by the growth in tablets and pressure on PCs that those lines are beginning to converge.”
“If somebody buys an iPad mini or an iPad, if it’s their first Apple product, a percentage of these people wind up buying another type of Apple product, [...] If you remember what we had termed the halo effect for the iPod with the Mac, we’re very confident that will happen with the iPad as well.”
What do you think of Apple’s Q1 2013 earnings?