Taking a Bite Out of Apple’s Q3 Results

By: Kuljit Grewal  |   July 25th, 2012   |   Apple, Business, News, Smartphones, Tablets

Although 26 million iPhones and 17 million iPads sounds like a lot of units, Apple fell victim to their own success when they were unable to meet analysts’ incredibly lofty sales estimates. The company reported $35 billion in revenues for the months of April to June along with $8.8 billion in net profit ($9.32 per diluted share). Revenue was expected to be $37.25 billion, but hey, nobody is perfect.

 

Although the numbers were not what analysts expected, they paint a different picture when compared year over year to 2011’s Q3 results. Overall, the 26 million iPhone units represent a 28% increase over 2011’s totals. The iPad figures are even more impressive, with the company selling a whopping 84% more units than they had last year. If that wasn’t enough, the company’s gross margin was a staggering 42.8 percent as people continue to pay premium prices for what the company has to offer.

 

Apple’s Board of Directors also declared a quarterly dividend of $2.65 per share on common stock, electing to share the wealth with their shareholders. The dividend is expected to be paid on August 16, 2012.

 

The tech giant also managed to sell 1.3 million Apple TV units for the period ended June 30, 2012. Although CEO Tim Cook still declared the slick device a “hobby”, he did mention that they expect big things from the small black box moving forward as the way users experience television as a whole is shifting.

 

Apple’s (AAPL) stock  has fallen nearly 5% or $26 in trading since the quarterly figure announcement to $574.97 per share. Although Q3 is considered disappointing by Apple standards, Q4 is expected to be huge for Apple as they introduce the highly anticipated iPhone 5 and iPad Mini.