Summary
Apple Inc. reported robust financial results for the first quarter of fiscal year 2015, ending December 27, 2014. Total net sales surged by 30% year-over-year to $74.6 billion, driven by a significant 57% increase in iPhone sales, which now represent 69% of total net sales. This growth was fueled by the launch of new iPhone models and expanded distribution. The Services segment also saw a healthy 9% increase in net sales. Despite strong overall growth, the iPad segment experienced a 22% decline in net sales, attributed to longer repurchase cycles and potential cannibalization from other products. Mac sales saw a modest 9% increase. The company demonstrated strong operational efficiency, with gross margin improving to 39.9% from 37.9% in the prior year, benefiting from a favorable product mix and improved leverage on fixed costs. Apple continued its commitment to returning capital to shareholders, repurchasing $5.0 billion in common stock and paying dividends of $2.8 billion during the quarter.
Financial Highlights
55 data points| Revenue | $74.60B |
| Cost of Revenue | $44.86B |
| Gross Profit | $29.74B |
| R&D Expenses | $1.90B |
| SG&A Expenses | $3.60B |
| Operating Expenses | $5.50B |
| Operating Income | $24.25B |
| Interest Expense | $131.00M |
| Net Income | $18.02B |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 23.37B |
| Shares Outstanding (Diluted) | 23.53B |
Key Highlights
- 1Total net sales grew 30% year-over-year to $74.6 billion.
- 2iPhone sales increased by 57% to $51.2 billion, becoming 69% of total net sales.
- 3iPad sales declined by 22% to $9.0 billion.
- 4Gross margin improved to 39.9% from 37.9% in the prior year.
- 5The company repurchased $5.0 billion of common stock and paid $2.8 billion in dividends.
- 6Greater China showed exceptional growth with net sales increasing by 70% year-over-year.
- 7Research and Development expenses increased by 42% to $1.9 billion.