Apple reported better-than-expected fourth-quarter earnings Monday, posting $8.26 per share on $37.5 billion in revenue. The results exceeded Wall Street estimates of $7.96 per share on $36.93 billion revenue. However, shares dipped in after-hours trading as the company projected Q1 gross margins of 36.5-37.5%, below analysts’ 37.9% forecast.
Product Sales Breakdown
The tech giant sold 33.8 million iPhones, 14.1 million iPads, and 4.6 million Macs during the quarter. iPhone sales fell within analysts’ projected range of 33-35 million units. The company issued Q1 revenue guidance of $55-$58 billion, slightly above the $55.7 billion consensus estimate.
Earnings Call Highlights (5:00-6:01 PM ET)
Opening Remarks (5:00-5:08 PM)
CEO Tim Cook declared Apple’s business “stronger than ever,” noting 150 million iPhones sold in fiscal 2013. CFO Peter Oppenheimer highlighted record iTunes services growth, with cumulative app downloads reaching 60 billion.
Product Strategy (5:08-5:28 PM)
Cook emphasized innovation in the iPhone 5S, calling its 64-bit processor and Touch ID fingerprint sensor industry-leading features. He clarified the iPhone 4S remains Apple’s entry-level product, not the iPhone 5C. Regarding iPads, Cook predicted strong demand for the new iPad Air, warning of potential shortages.
Market Expansion (5:28-5:38 PM)
Apple reported particular strength in Latin America, Russia, and India. Cook outlined aggressive retail expansion plans in China, targeting cities beyond major metropolitan areas.
Future Outlook (5:38-5:46 PM)
When pressed about new product categories, Cook teased upcoming innovations: “We can use our skills to build great products in areas we don’t participate today.” The CEO projected “an iPad Christmas” and confirmed 15 acquisitions during the fiscal year.
Financial Details (5:46-6:00 PM)
Oppenheimer noted 70% of Apple’s $146.5 billion cash reserve remains overseas. The company plans continued store remodels and emphasized iTunes Radio’s growth to 20 million users.
Market Reaction
After initially falling 2% in after-hours trading, shares partially recovered during the call but remained down at closing. Analysts expressed particular interest in margin pressures from new product launches.
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