Apple Inc. Quarterly Report for Q1 Ended Dec 28, 2013

Summary

Apple Inc. reported strong performance for the quarter ending December 28, 2013, with net sales reaching $57.6 billion, a 6% increase year-over-year. This growth was driven by robust sales of iPhones, iPads, and Macs, particularly fueled by new product launches like the iPad Air and updated iPhone models. The Greater China and Japan regions showed significant year-over-year growth in net sales. Despite a slight decline in gross margin percentage to 37.9% from 38.6%, attributed to higher costs for new products and pricing dynamics, overall profitability remained strong with a net income of $13.1 billion. The company continued its commitment to returning capital to shareholders, utilizing $5 billion for share repurchases and paying $2.7 billion in dividends. Apple's strong liquidity position was maintained, with cash, cash equivalents, and marketable securities totaling $158.8 billion. The company anticipates sufficient resources to meet its operational and liquidity needs over the next 12 months. Management's outlook suggests continued focus on R&D investment and market expansion, particularly in key growth regions.

Key Highlights

• 1Net sales increased by 6% to $57.6 billion, up from $54.5 billion in the prior year's comparable quarter.
• 2iPhone sales grew 6% year-over-year, contributing 56% of total net sales ($32.5 billion).
• 3iPad sales increased by 7% to $11.5 billion, also representing 20% of total net sales.
• 4Mac sales saw a significant increase of 16% year-over-year, reaching $6.4 billion.
• 5Greater China region demonstrated substantial growth with a 29% increase in net sales.
• 6Gross margin percentage slightly decreased to 37.9% from 38.6% due to new product costs and pricing pressures.
• 7Apple returned approximately $7.8 billion to shareholders through share repurchases ($5 billion) and dividends ($2.7 billion).

Frequently Asked Questions