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Apple Inc. Reports Operating Results (10-Q)

January 24, 2013 | About:
10qk

10qk

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Apple Inc. (AAPL) filed Quarterly Report for the period ended 2012-12-29.

Apple Inc has a market cap of $425.99 billion; its shares were traded at around $451.9 with a P/E ratio of 10.3 and P/S ratio of 2.7. The dividend yield of Apple Inc stocks is 1.1%. Apple Inc had an annual average earning growth of 81.6% over the past 10 years. GuruFocus rated Apple Inc the business predictability rank of 4.5-star.

Highlight of Business Operations:

iPhone net sales were $30.7 billion in the first quarter of 2013 representing an increase of $6.7 billion or 28% compared to the first quarter of 2012. iPhone unit sales totaled 47.8 million in the first quarter of 2013, which represents an increase of 10.7 million units or 29% compared to the same period in 2012. iPhone year-over-year growth reflects strong demand for iPhone in all of the Companys operating segments primarily due to the launch of iPhone 5 beginning in September 2012 and strong ongoing demand for iPhone 4 and 4S. Net sales of iPhone accounted for 56% of the Companys total net sales for the first quarter of 2013 compared to 52% in the first quarter of 2012.

iPad net sales were $10.7 billion in the first quarter of 2013 representing an increase of $1.9 billion or 22% compared to the first quarter of 2012. Unit sales of iPad were 22.9 million during the first quarter of 2013, an increase of 48% compared to the same period in 2012. The year-over-year increase in net sales and unit sales was driven by strong demand for iPad in all of the Companys operating segments as a result of the launch of iPad mini and the fourth generation iPad with Retina® display in the first quarter of 2013. The year-over-year growth rate of iPad unit sales was higher than the growth rate of iPad net sales during the first quarter of 2013 due to a reduction in average selling prices as a result of a shift in product mix toward lower-priced iPad models, including iPad mini. Net sales of iPad accounted for 20% of the Companys total net sales in the first quarter of 2013 compared to 19% in the first quarter of 2012.

Mac net sales were $5.5 billion in the first quarter of 2013 representing a decrease of $1.1 billion or 16% compared to the first quarter of 2012. Mac unit sales decreased by 1.1 million or 22% in the first quarter of 2013 compared to the same period in 2012. Declines in Mac net sales and Mac unit sales were experienced to some extent in all of the Companys operating segments and reflect overall declines in unit sales of both desktop and portable systems. Mac sales were negatively impacted during the first quarter of 2013 by a number of factors including supply constraints through the end of the quarter on the Companys new iMac models that were announced in October 2012 but did not ship until the final month of the quarter; one less week in the first quarter of 2013 compared to the first quarter of 2012; and the overall weakness in the market for personal computers. Net sales of Mac declined to 10% of the Companys total net sales in the first quarter of 2013 compared to 14% in the first quarter of 2012.

iPod net sales were $2.1 billion in the first quarter of 2013 representing a decrease of $385 million or 15% compared to the first quarter of 2012. Unit sales of iPods decreased by 18% during the first quarter of 2013 compared to the same period in 2012. Net sales of iPods accounted for 4% of the Companys total net sales for the first quarter of 2013 compared to 5% in the first quarter of 2012.

Net sales in the Retail segment increased $325 million or 5% during the first quarter of 2013 compared to the first quarter of 2012. The growth in net sales during the first quarter of 2013 was primarily driven by increased demand for iPhone following the launch of iPhone 5 and strong demand for iPad following the launch of iPad mini and the fourth generation iPad. The growth rate of the Retail segment was somewhat lower than the Companys overall growth rate primarily as a result of expanded third-party distribution of iPhone and iPad. The Company opened 11 new retail stores during the first quarter of 2013, 10 of which were outside the United States, ending the quarter with 401 stores open compared to 361 stores at the end of the first quarter of 2012. With an average of 396 and 358 stores opened during the first quarter of 2013 and 2012, respectively, average revenue per store decreased to $16.3 million in the first quarter of 2013, compared to $17.1 million in the first quarter of 2012. However, given the 14th week added to the first quarter of 2012, revenue per store on a per week basis increased 3% during the first quarter of 2013 compared to the first quarter of 2012. The Retail segment represented 12% and 13% of the Companys total net sales in the first quarter of 2013 and 2012, respectively.

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10qk
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