Apple reports record Q2 revenue in Q2 2013, profits significantly down year-over-year

Apple today announced it has sold 37.4 million iPhones, 19.5 million iPads and 5.6 million iPods in Q2 2013. Overall, the company reported $43.6 billion in revenue, good for net profits of $9.5 billion during Q2. Net profit in Q2 2012 was $11.6 billion, meaning profits fell this past quarter by more than 18 percent year-over-year. "We acknowledge that our growth rate has slowed," says Apple CEO Tim Cook. Overall, revenues were down 20 percent over the previous quarter’s sales of $54.5 billion (note that it was the holiday quarter), but up 11.2 percent year-over-year from Q2 2012 revenue of $39.2 million. In total, Apple sold 62.5 million iOS devices during the quarter, down from Q1 2013 when the company sold 83.4 million iOS devices. iPhone sales were down 21.8 percent from Q1 2013’s figures. Although iPhone sales were up 6.5 percent over the same time a year ago. iPad sales were down 14.9 percent quarter-over-quarter, but significantly up year-over-year by 65.3 percent. iPod sales fell year-over-year, dropping 27.3 percent compared to sales of 7.7 million iPods in Q2 2012. These figures were slightly above the median estimate among 61 analysts of $42.7 billion in revenue, according to a survey from Fortune’s Philip Elmer-DeWitt. It's worth noting that this quarter is the first since Apple changed the way it estimates its earnings. Apple chief financial officer Peter Oppenheimer said in its Q1 2013 earnings call in January that Apple would move from a conservative set figure for its quarterly revenue and profit to a range, while also eliminating any profit estimate. Apple's low-balling for its quarterly forecasts became a running joke on Wall Street. Apple's Q3 2013 guidance for revenue is between $33.5 and $35.5 billion. The company’s gross margin, meaning the amount of money it makes on its products, for the quarter was 37.5 percent, significantly down from Q2 2012′s 47.4 percent and only slightly below Q1 2013′s 38.6 percent. Apple generated more than $12.5 billion in cash flow this quarter, and it now has $132.7 billion in cash and short-term and long-term marketable securities. Apple's stock reached a record high at $702.10 a share in September 2012, but since then, the stock has plummeted to as low $390.53 per share on April 19. The company's stock closed today at $406.13 a share. In after-hours trading, shares dipped by less than a dollar to $405.50 a share. "The decline in Apple stock prices over the last couple of quarters has been frustrating to us," Cook says.

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Apple reports record Q2 revenue in Q2 2013, profits significantly down year-over-year

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