Summary
Apple Inc. (AAPL) reported solid financial results for the fiscal second quarter ending March 29, 2014. Net sales grew 5% year-over-year to $45.6 billion, driven by strong performance in Greater China and Japan, and continued demand for iPhones. Net income also saw an increase, reflecting healthy profitability. The company demonstrated robust operational efficiency, with gross margins improving to 39.3% due to a favorable product mix and cost efficiencies. Research and development (R&D) and selling, general, and administrative (SG&A) expenses increased, reflecting ongoing investments in innovation and business expansion. Apple continued its strong commitment to returning capital to shareholders, repurchasing $18 billion of common stock and paying $2.7 billion in dividends during the quarter. The company also announced a significant seven-for-one stock split and increased its capital return program.
Financial Highlights
55 data points| Revenue | $45.65B |
| Cost of Revenue | $27.70B |
| Gross Profit | $17.95B |
| R&D Expenses | $1.42B |
| SG&A Expenses | $2.93B |
| Operating Expenses | $4.35B |
| Operating Income | $13.59B |
| Interest Expense | $85.00M |
| Net Income | $10.22B |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 24.49B |
| Shares Outstanding (Diluted) | 24.63B |
Key Highlights
- 1Net sales increased 5% to $45.6 billion, with notable growth in Greater China (13%) and Japan (26%).
- 2iPhone sales grew 14% to $26.1 billion, contributing 57% of total net sales.
- 3iPad sales declined 13% year-over-year, impacted by channel inventory adjustments.
- 4Gross margin percentage improved to 39.3% from 37.5% in the prior year's quarter.
- 5R&D expenses increased by 27% and SG&A expenses increased by 10%, indicating continued investment in innovation and growth.
- 6The company repurchased $18 billion in common stock and paid $2.7 billion in dividends.
- 7Apple announced a seven-for-one stock split and increased its capital return authorization to over $130 billion.