Apple this afternoon announced their Q3 2014 earnings, which saw a record profit of $7.7 billion in the quarter, as the company sold 35.2 million iPhones, part of $37.4 billion in total revenue, along with 13.2 million iPads, 4.4 million Macs and 2.9 million iPods sold.
- Over 20 million people streamed the 2014 WWDC keynote
- Earnings per share up 20% year-over-year, highest growth in 7 quarters
- Record June quarter for Mac sales, up 18%
- iTunes software/services was fastest growing segment of business in first 9 months of fiscal year; $2.6B in revenue; $20B paid to developers
- 98% customer satisfaction rate for iPad, 100% for iPad mini
- 225 million iPads sold to date; more than half of all new purchases are by first-time buyers
- 29 companies acquired by Apple in 2014
- iPad accounts for 80% of all US-tablet based e-commerce purchases; 85% of education market is using iPad
- iPhone had 97% satisfaction rate; 41% of US smartphone subscriber base is iPhone
- NASA using 26,000 iPhones
- iPad has YoY growth in developing markets Brazil, India, Russia, China
- Mac sales grew 18% YoY; saw growth in US, Canada, UK, Germany, France, and more
- Ended quarter with $164.5 billion in cash plus securities ($26.8B domestic; $137.7B offshore)
- China: saw iPhone unit growth of 48%; market rate is 24%
In an interview with the Wall Street Journal regarding declining iPad sales, CEO Tim Cook said the numbers were what the company had projected and “This isn’t something that worries us.”
Cook cited one reason for the decline, and that was the quarter ending in June normally concentrated on “higher education” sales, meaning Macs are more popular. Where the iPad outsells the Mac is in the age range of high school and lower, where tablet numbers are two-and-a-half fold compared to the Mac.
Despite the sales decline on paper, Cook clarified iPad revenue growth exceeded 40% in developing markets such as China and the Middle East.
Also, there is still room to grow in the enterprise, as Apple only has 20% marketshare compared to 60% for notebooks. Of course, with the recent partnership announcement with IBM, Apple hopes to get more iPads and business-friendly apps into the corporate sector.
The third quarter is normally a time when people are holding off upgrades and purchases as they know new products are coming in the fall. Even with that in mind, Apple still sold 35.2 million iPhones and had a record $7.7 billion in profit for the quarter.