Apple reports a huge profit but sales disappoint

iPhones and iPad sales were both slower than expected

Apple's earnings to the third financial quarter of 2014

Apple's earnings to the third financial quarter of 2014

Apple has racked up another hugely profitable quarter on sales of iPhones and Macintosh computers, though its revenue growth was slower than expected.

Apple reported a profit of $US7.7 billion for the April to June quarter, up 12 per cent up on the same period last year and ahead of analyst estimates of US$7.5 billion, according to Thomson Reuters.

Revenue was $US37.4 billion, 5 per cent higher than last year but slightly below analyst expectations of $US38 billion. Apple had told investors to expect revenue of between $US36 billion and $US38 billion for the quarter.

Apple CEO, Tim Cook, attributed the growth to "strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem."

The company sold 35.2 million iPhones in the period, a quarterly record, though analysts had been expecting higher sales of 35.9 million units.

IPad sales continued their slide, to 13.3 million, down 9 percent on the same period a year earlier and just over a million units below analyst estimates.

Mac computers were a bright spot. Apple sold 4.4 million of them in the quarter, up 16 percent on the same period of 2013.

Looking ahead, Apple said it expects revenue in the current period, from July to September, to be between $US37 billion and $US40 billion.

"We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can't wait to introduce," Cook said in a statement.

Apple is expected to announce a successor to the iPhone 5S, presumed to the be iPhone 6, in the coming months. Apple typically launches iPhone models in mid-September, in time for the holiday shopping season.

While it's yet to announce details of the phones, The Wall Street Journal has reported that Apple will launch two models: one with a 4.7-inch screen and one with a 5.5-inch screen.

The current iPhone has a 4-inch screen, and internal Apple studies, highlighted during a recent court trial, have shown larger screens are the single most wanted feature for future models.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags iPadsmartphonestabletsbusiness issuesAppleiPhonefinancial resultshardware systemsconsumer electronicsmac laptopslaptopsdesktop pcsMac desktops

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Family Friendly

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?