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Apple's results top estimates as iPhone sales hit record for quarter

July 23, 2013|By Andrea Chang
  • An Apple store on 5th Avenue in New York.
An Apple store on 5th Avenue in New York. (Spencer Platt / Getty Images )

Apple Inc. reported solid fiscal third-quarter earnings Tuesday, with profit and revenue that beat expectations, and said it set a new June quarter record for number of iPhones sold.

The Cupertino, Calif., tech company posted profit of $6.9 billion, or $7.47 a share, on revenue of $35.3 billion.

Analysts had expected earnings of $7.34 a share on revenue of $35.18 billion, according to consensus estimates compiled by Thomson Reuters. They also had predicted Mac sales of 3.9 million, iPhone sales of 26 million and iPad sales of 18.3 million.

Apple's own guidance had revenue coming in between $33.5 billion and $35.5 billion.

The company sold 31.2 million iPhones compared with 26 million in the year-ago quarter. It sold 14.6 million iPads, down from 17 million; and 3.8 million Macs, down from 4 million.

The news sent Apple's shares up 4.7% to $438.70 in after-hours trading shortly after earnings were released. During regular trading, shares fell 1.7% to $418.99.

“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, software and services,” Chief Executive Tim Cook said in a statement. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

The company, which reported earnings after the stock market's regular session ended, also declared a cash dividend of $3.05 a share. The dividend is payable Aug. 15 to shareholders of record at the close of business on Aug. 12.

A prolonged product drought has dampened the fervor that had surrounded the company in recent years, with consumers and investors alike eager for something new. In the absence of that, and combined with stiff competition from rivals selling newer products often at lower price points, Apple's sales reportedly have been sluggish, and its stock has fallen sharply since last fall.

For the current quarter, Apple expects revenue of $34 billion to $37 billion and gross profit margin of 36% to 37%.

The company has scheduled a conference call for analysts at 2 p.m. PDT. Check back later for our full story with comments from the call.

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