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Apple Reports Second-Quarter Earnings

Dan Miller, reporting for Macworld:

iPhone sales were up 17 percent compared to the second quarter last year (43.7 million phones sold versus 37.4 million the year before). Revenues from the smartphones were up, too, from $22.95 billion to $26.06 billion, an increase of 13 percent. The iPhone now accounts for fully 57 percent of Apple’s overall revenues (up from 53 percent last year).

In his comments, Apple CEO Tim Cook said demand for each of the three current iPhone models (the iPhone 5s, iPhone 5c, and iPhone 4s) has been stronger than predecessor (a pointed rebuke, perhaps, to those who have proclaimed the 5c to be a failure). He also pointed out that phone sales were particularly robust in Asian markets, particularly Japan and China (where the addition of China Mobile as a carrier and iPhone 4s pricing led to an all-time sales record).

iPad sales were effectively flat, year-over-year; Mac sales were slightly up (which is impressive, given the continuing decline of the overall PC market).

A few other tidbits from the analyst conference call:

  • They’re splitting the stock 7-for-1 in the first week of June. That’ll bring the price per share to somewhere around $70-80.

  • Angela Ahrendts starts next week.

Wednesday, 23 April 2014