Summary
Apple Inc. reported strong financial results for the third quarter of fiscal year 2014, with net sales increasing by 6% year-over-year to $37.4 billion. This growth was primarily driven by robust iPhone and Mac sales, with iPhone net sales up 9% and Mac net sales up 13%. The company also saw significant growth in its Greater China region, with net sales increasing by 28%. Profitability also improved, with gross margin rising to 39.4% from 36.9% in the prior year's comparable quarter, attributed to a favorable product mix, lower commodity costs, and improved fixed cost leverage. The company continued its aggressive capital return program, repurchasing $5 billion in common stock and paying $2.9 billion in dividends and dividend equivalents during the quarter. Significant debt issuances were also undertaken to support these activities and general corporate purposes.
Financial Highlights
55 data points| Revenue | $37.43B |
| Cost of Revenue | $22.70B |
| Gross Profit | $14.73B |
| R&D Expenses | $1.60B |
| SG&A Expenses | $2.85B |
| Operating Expenses | $4.45B |
| Operating Income | $10.28B |
| Interest Expense | $100.00M |
| Net Income | $7.75B |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 24.05B |
| Shares Outstanding (Diluted) | 24.21B |
Key Highlights
- 1Net sales for the third quarter of fiscal 2014 increased by 6% to $37.4 billion, compared to $35.3 billion in the prior year's quarter.
- 2iPhone sales showed strong performance, with net sales up 9% year-over-year to $19.75 billion, representing 53% of total net sales.
- 3Mac sales also demonstrated solid growth, with net sales increasing by 13% to $5.54 billion, driven by strong demand for MacBook Air and Mac Pro.
- 4Gross margin improved significantly to 39.4% from 36.9% in the prior year's quarter, indicating improved profitability and cost management.
- 5The Greater China region was a key growth driver, with net sales surging by 28% year-over-year, highlighting the company's expanding market presence in the region.
- 6Apple continued its substantial capital return program, repurchasing $5 billion of its common stock and paying $2.9 billion in dividends and dividend equivalents during the quarter.
- 7The company issued $12.0 billion in long-term debt and $2.0 billion in commercial paper, primarily for general corporate purposes, including dividends and share repurchases.