Apple Q4 2012 earnings release

Last week Apple released the fourth quarter results for the 13 week period that ended Sept 29.

For the quarter Apple reported revenue of $35.966 billion, 27.2% and earning per share of $8.67, 22.98% growth.

For the fiscal year ending the same date, Apple reported revenue of $156.5 billion, 44.6%, profits of $41.7 billion up 45% and earnings per share of $44.2 growing at 59.5%.

These figures have been widely commented on a miss for company as many Wall St analysts had projected eps of $8.75 from revenue of $35.8 billion.

With a lower than expected eps Wall St marked the stock down and showed concern on light iPad sales. In the quarter Apple sold 26.9 million iPhones, up 58%, 14 million iPads up 26% and 4.9 million Macs up 1%. All figures Y on Y.

CEO Tim Cook issued guidance of $52 billion for the next quarter, about $3B less than analysts were expecting and cited lower margins as new products are launched.

The lower iPad sales were attributed to people awaiting the widely anticipated iPad mini announcement.

The stock ended flat and is down about 13% from above $700 a few weeks ago.

What we don’t know is how much the sales were constrained by supply limits rather than demand. The rate of iPhone sales is still accelerating with y-on-y growth of close to 60% and earns Apple a substantial profit. See Graph below.

The iPad mini launch was widely expected and some people may have held back. As the iPad rev 3 was replaced  by the iPad ref 4 it is also highly possible that Apple curtailed production numbers during the transition to boost stocks of the mini and new iPad.

With the introduction of new iPad, iPhone 5, iPad mini and refreshed iMac and 13 inch Mac Book Pro, Apple is entering a period of extreme transformation as the majority of revenue will be derived from new products. In the conference call Apple CFO, Peter Oppenheimer said “we believe that over 80% of the revenue that we will see in the December quarter will come from products that we’ve just introduced in the last six weeks.”

This is mind-blowing that a company as big as Apple can refresh some many of its besting selling products at the same time.

A visit to PC World over the weekend showed the level of pent-up demand with people lining up to play with the new 13” Mac Book Pro with retina display and asking about the new pending iPads. This compares in start contract with the lack of interest in the multiple Windows 8 computers on display.

We expect extreme sales of iPad mini over the next quarter. This has been somewhat confirmed by the 2 week lead time for orders placed today compared to the initial 1 week available on Friday. New iPads are also 2 weeks out.

Apple revenue split 2012

2 thoughts on “Apple Q4 2012 earnings release

  1. Kimot

    Beautiful work.

  2. Derrick

    Really liked what you had to say in your post, Apple Q4 2012 earnings release | Taybridge ConsultingTaybridge Consulting, thanks for the good read!
    — Derrick

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