Apple Records Strongest March Quarter in Company History

apple_logo_grey1Just moments ago, Apple announced its financial earnings results for the second quarter of the fiscal year. And for the second consecutive quarter, the Cupertino-based corporation posted record-breaking numbers with $43.6 billion in revenue thanks to strong sales in each of its main product categories.

During the three month period ending in March, Apple sold 37.4 million iPhones, 19.5 million iPads and just under 4 million Macs. In the year-ago quarter, comparatively, Apple sold 35.1 million iPhones, 11.8 million iPads and 4 million Macs. 

Apple shares have gained approximately 7 percent on the day, factoring in a huge spike in after hours trading, as these numbers beat some of the bullish estimates that Wall Street analysts had set. Nevertheless, industry followers were correct in claiming that Apple’s profits margins would decrease, due to products like the iPad mini, as the company reported quarterly net profit of $9.5 billion versus $11.6 billion in the second quarter of 2012. Despite that, Apple chief executive Tim Cook remains optimistic.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline.”

Apple now has $145 billion in cash reserves that it will focus on returning to shareholders, announcing that it will more than double its capital return program and focus on repurchasing a significant number of its own shares. One downside that Apple continues to face is the sale of iPods, which reportedly suffered a 56 percent decline year-over-year at 5.6 million units sold. Apple’s iPod division now accounts for less than $1 billion in quarterly revenue.

Post a response / What do you think?