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Apple executives said that the decline in sales of iPad volumes is not a cause for concern


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Apple executives said that the decline in sales of iPad volumes is not a cause for concern


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POSTER: computer news   ||   APPLE EXECUTIVES SAID THAT THE DECLINE IN SALES OF IPAD VOLUMES IS NOT A CAUSE FOR CONCERN

DATE:2014-07-23

Judging by the  news about future  smartphones Apple, their production is gaining momentum, but a formal announcement is traditionally scheduled for the end of the fiscal year , which corresponds to September .  Today Apple reported for the three months ended June 28  this year - that the third quarter of its fiscal calendar.  Due to certain reasons the growth of Apple's smartphone sales have slowed.

Anyway, for the second quarter, Apple managed to sell 35 million iPhone - roughly in line with analysts' expectations, or slightly below, but in the annual comparison, worldwide sales of iPhone increased only by 13% in volume and 9% in value.  Compared with the previous quarter, the dynamics in general was strictly negative: the number of iPhone sold decreased by 19%, and revenues from their sales fell by 24%.  Present main market  for Apple was Chinese market.  It not only showed growth in total revenue by 28% YoY, but literally puzzled local manufacturers of inexpensive smartphones.  The iPhone sales in China grew by 48% in volume and sales Mac - 39%. According to CFO Apple, local smartphone makers are increasing their market share mainly due to other Android supporters  . Apple company , in turn is supported by operator China Mobile.  Because the number of iPhone sold increased more than revenue, the conclusion suggests itself: Apple sells more cheap versions of their smartphones.  Tim Cook admitted on a quarterly report conference that iPhone 5c fastest expansion bypasses much  their predecessors.

In the last quarter Apple helped out with sales iPhone $ 19,75 billion in other words, the company's revenue ($ 37.4 billion in total) 53% depends on the iPhone.  Affects whether the growing popularity of cheaper versions of the iPhone on the company's profitability?  Not at all, by reducing the cost Apple manages to increase the profit margin from 36.9% to 39.4%, if we consider the annual period.  Incidentally, the total revenue of Apple fell by 18% compared with the previous quarter, but increased by 6% compared to the same period last year.  The next quarter, which is still largely be characterized by lower demand for new iPhone models due to expectations, Apple will bring from $ 37 to $ 40 billion in revenue, according to the company's own projections.  Profit margin to 37-38% .

IPad sales rapidly dive.  Number of tablet sold for the quarter decreased by 19% YoY - 9%, while revenue fell 23% and 8%, respectively.  Tim Cook accused the developed markets in the sluggish demand for iPad, though he admitted that the sales results for the quarter tablet not a surprise for the company.  Demand for Apple tablets decreases, but the company still expects to surprise the consumer in this segment of the new hardware and software, and services.  IBM, for example, Apple undertook to help with the promotion of their decisions in the corporate segment, where the penetration rate of the iPad does not exceed 20%.

Just in the last quarter it sold 13.3 million iPad.  Apple tablet sales volumes reduced second quarter in a row.  According to Tim Cook, it was not particularly worried.  The main thing that consumers like  Apple Tablets, and they are actively using them, in the words of the CEO.  He also explained that the second quarter marked by sales of mobile devices are coming on the education sector when it comes to tablets and laptops, and the latter are more popular among students.

Mac computers family too pleased Apple in the last quarter.  Sales volumes in real terms increased by 7% for the quarter and 18% for the year (to 4.4 million units), the proceeds - 13% YoY ($ 5.5 billion), but did not change in the sequence.  iPod does not save even the fact that the number of products sold in this series in the past quarter increased by 6% to 2.9 million units.  Revenue fell while 4% for the quarter and year versus all bad: minus 36% of the number of sold iPod and minus 40% of revenue from their sale.  

On selling services, software and using  iTunes store, Apple last quarter gained $ 4.4 billion, which is 2% less than in the previous quarter, but 12% higher than a year earlier.  Sales of accessories brought Apple $ 1,3 billion - minus 7% for the quarter and 12% plus per year.

In the past quarter net income rose to $ 7.7 billion versus $ 6.9 billion a year earlier.  In addition to the inevitable costs of developing new products and technologies, Apple is ready to spend money to increase shareholder returns - share repurchase program continues to run in the last quarter and $ 8 billion was spent on the acquisition of treasury shares and payment of dividends.  By the way, since October last year, Apple has made 29 purchases of assets, not including a deal with Beats.  On the company's stock listing fiscal quarter results had no significant effect, although some analysts were disappointed.


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