• 04.24.13

Apple’s Q2 Results: Profits Fall, But Performance Beats Analysts’ Expectations

Investors get a 15% increase in their dividends, a windfall of just over $10 per diluted share.

Apple’s Q2 Results: Profits Fall, But Performance Beats Analysts’ Expectations

Apple released its second-quarter 2013 results yesterday. Profits were down for the first three months of this year, the first time in a decade that they have not been on an upward trajectory. Total revenue for the quarter? A perfectly healthy $43.6 billion.


In order to assuage the call by some investors for a hoick in dividends, Apple also announced it would buy back $60 billion of shares, unlocking a pay-out of $10.09 per diluted share

Tim Cook was bullish during the call, urging people to look forward to Fall 2013, where there would be some “more surprises”. The CEO didn’t promise that the “exciting new product category” would appear before the end of the year–most evidence points towards this being the iWatch.

Given all the hoo-ha before yesterday’s earnings call, you would have thought that the firm was in serious trouble. Look at each product’s numbers, though. Sales of the iPhone are up 2.3 million, year-on-year. 19.5 million iPads sold, compared to Q2 2012’s 11.8 million–that’s an increase of 65%. Mac sales were down, just under 4 million, from 4 million 12 months earlier.

But two facts stands out: users of iCloud now number 300 million–that’s a 20% increase since January 2013, which means each of these 300 million people are perfectly placed to become a mobile payment user. And, with 45 billion App Store downloads, Apple paid out $9 billion to developers, meaning it trousered $3.9 billion for itself.

[Image by Flickr user frankh]

About the author

My writing career has taken me all round the houses over the past decade and a half--from grumpy teens and hungover rock bands in the U.K., where I was born, via celebrity interviews, health, tech and fashion in Madrid and Paris, before returning to London, where I now live. For the past five years I've been writing about technology and innovation for U.S.