Apple’s Fourth Quarter 2013 Results: Revenue up, profit down

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Apple’s fourth quarter 2013 financial results were discussed on their earnings call yesterday, and the numbers were hardly surprising. Analysts closely predicted most everything that was reported. Apple revealed revenue of $37.5 billion – up from $36 billion last year-, and a profit of $7.5 billion – down sharply from $8.2 billion last year. This quarter’s gross margin was 37%, down from 40% in the year-ago quarter. International sales made up 60% of the revenue this quarter.

Unsurprisingly, iPhones and iPads are still selling like crazy. 33.8 million iPhones were sold in the September quarter, a new record, up from 26.9 million in the year-ago quarter. iPad sales were mostly flat at  14.1 million, up from 14 million in the year-ago quarter. Mac sales are continuing their downward slide with just 4.6 million sold, down from 4.9 in the year-ago quarter.

Though iPhone sales are up, the ASP (Average Selling Price) of each unit is down to $577. Customers appear to be buying mostly lower-end iPhones, enough so that iPhone ASP dropped $4 per handset from the third quarter this year. It’s unclear if the iPhone 5C had anything to do with the drop, considering analysts claim that 5C sales are far below Apple’s expectations. Tim Cook addressed this on the call, urging people to look at the bigger picture instead of the change of product flow through one supply chain. Cook also claimed that the 5C was not Apple’s attempt at a entry-level iPhone, instead positioning it between the extremely inexpensive 4S and the new 5s.

Strong iPad sales were likely tapered by the anticipation of a new model this Fall, which Apple did provide. Sales going into 2014 should be robust as we enter the holiday shopping season with two huge iPad upgrades hitting store shelves. iPad ASP rose slightly to $439 compared to this quarter last year, but are down overall on strong sales of the cheaper iPad mini. The new iPad mini with Retina display being priced at $399 should keep ASP relatively flat in the future.

Cook attributed the steady decline in Mac sales to the release of the new iMac last year, with a delayed availability date and constrained supplies after that. Guidance for Mac sales in the next year demonstrate a belief that this fall in sales will be reversed somewhat with better availability of upgraded models.

Apple’s guidance for the first quarter of 2014 are strong, estimating revenues to be between $55 and $58 billion – both above the $54.5 billion of the year-ago quarter –  with a gross margin between 36.5% and 37.5% – both below the 38.6% of the year-ago quarter.

Live on Apple’s fourth quarter 2013 earnings call

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We’re on the line and listening in as Apple delivers their fourth fiscal quarter earnings call for 2013. Revenue is expected to climb slightly while net profits take a small slide this quarter. The generally slow quarter for iPhones is expected to reverse the trend and shoot up a whopping 5.8 million units sold to come in at 32.7 million iPhones sold that quarter. iPads should climb slightly, and Macs are expected to continue their slow fall.

The call is over and we’re working on summing everything up in a more friendly format. We’ll have that post available shortly.

Apple Earnings Call liveblog: We’ll be there!


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Apple is set to announce their quarterly earnings for the fourth fiscal quarter this Monday the 28th at 2PM Pacific / 5PM Eastern. We’ll be listening in on the call and posting the latest information as it’s released.

This quarter should be a particularly interesting one as it follows a slew of new product releases. We should hear some details on how these products are performing, and I’m sure that the executive team will be grilled on the iPhone 5C by investors. Little information has been given about current iPhone sales beyond combined sales figures of the 5s and 5C. An update on these combined sales figures is also expected.

iPad sales are down, though you wouldn’t know it from Apple’s chart at the iPad event. Apple will likely detail how it expects the iPad Air and iPad Mini with Retina display to reverse the downward trend.

Apple’s previous guidance for the fourth quarter estimates revenue of about $37 billion, and most agree that this will be very close to the final number. This is up from $36 billion during the same quarter last year. Net profits were at $8.2 billion and are expected drop slightly to $7.96 billion this year – still an incredible amount of cash. iPhone sales are expected to rocket to 32.7 million units sold (up from 26.9 million last year). iPads should show some light sales growth, coming in at 14.5 million (up from 14 million last year). Mac sales are expected to take another hit, dropping to 4.35 million sold (down from 4.9 million last year) as sales continue to slide.

Monday’s call should be insightful but will likely lack the specific sales figures on the iPhone 5C that we all want to hear. The focus will likely fall on the new iPad lineup and how current sales, while down, are still much higher than the rest of the industry.

Check back at 2PM P/5PM E for a liveblog of the call.

Using iCloud Keychain: Good, but not a 1Password killer


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One of the most anticipated new features of OS X Mavericks is the iCloud Keychain. This resurrected and upgraded feature again allows you to sync your Keychain between Macs, and brings iOS into the Keychain syncing family. Additionally, Safari will now suggest passwords for you while creating new logins or even changing existing passwords. Prior to release, we speculated that this might be the next 1Password killer. Does it live up to the hype? Read more to find out. Continue reading

The New Mac Pro: More details revealed before launch

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First previewed at WWDC 2013, the Mac Pro is nearly here. Apple teased us with some tantalizing new details about their new Pro user powerhouse. This is not your mother’s Mac. It’s probably not yours, either. The “entry level” Mac Pro starts at a wallet busting $2,999.

Quick stats:

  • 1/8th volume of older Mac Pro
  • New Intel Xeon processor available in 4, 6, 8, 12 cores
  • Dual AMD FirePro graphics cards standard
  • All Flash storage
  • Pricing starts at a cool $2,999
  • Available this December

Read more below to get all of the lust-worthy details. Continue reading

New iPads: Everything you need to know!


In Apple’s “biggest step yet,” two new iPad models were previewed Tuesday. The new new iPad – now called the iPad Air – is lighter and smaller where it counts. iPad Air keeps the beautiful Retina display that we’ve come to love and expect, but trims some weight and excess width by removing much of the bezel of the older generations.

iPad mini is now the iPad mini that everyone wanted last year. The newly available Retina display amazingly packs the same number of pixels as the larger iPad Air, and gets a much needed processor bump by including Apple’s new A7 processor previously seen in the iPhone 5s.

Get the full scoop on how tablet computing has changed by reading more below.

Continue reading