Apple’s earnings: higher sales, lower margins

October 29, 2013

Apple’s quarterly earnings were released yesterday, with results that were in line with forecasts but down significantly from this time last year. From Reuters:

Gross profit margin for the fourth quarter was 37 percent, down from 40 percent a year ago as intense competition from the likes of Samsung Electronics took a toll. That was roughly level with analysts’ average 36.9 percent forecast.

Compare that to the last four years:

Here’s more from Reuters:

Apple said it sold 33.8 million iPhones last quarter, roughly in line with analyst expectations for 33 million to 36 million.

It sold 14.1 million iPads during the quarter, up very slightly from 14 million in the year-ago quarter, and moved 4.6 million of its Mac computers, down from 4.9 million a year ago.

Overall revenue was $37.5 billion, ahead of Wall Street’s average forecast of $36.8 billion, according to Thomson Reuters I/B/E/S.

Earnings per share slid for the third straight quarter to $8.26, ahead of analysts’ average estimate of $7.94.

Business Insider points out that the iPad sales last quarter missed expectations slightly, and have been on the decline in recent quarters. Here’s a chart from Jay Yarow:

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