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Apple Reports Higher Fiscal Q3 Sales, Lower Profits

Cupertino, Calif. — Apple reported higher revenue, with record iPhone sales, but lower net profit in its fiscal third quarter, ended June 29.

Apple posted quarterly revenue of $35.3 billion and quarterly net profit of $6.9 billion. These results compare with revenue of $35 billion and net profit of $8.8 billion in the year-ago quarter.

Gross margin was 36.9 percent compared with 42.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarter’s revenue.

Apple said it sold 31.2 million iPhones, a record for the June quarter, compared with 26 million in the year-ago quarter. Apple also sold 14.6 million iPads during the quarter, compared with 17 million in the year-ago quarter. The company sold 3.8 million Macs, compared with 4 million in the year-ago quarter.

“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,” said Tim Cook, Apple’s CEO. “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.”

“We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases,” said Peter Oppenheimer, Apple’s chief financial officer.

Apple provided the following guidance for its fiscal 2013 fourth quarter:

• revenue between $34 billion and $37 billion;

• gross margin between 36 percent and 37 percent;

• operating expenses between $3.9 billion and $3.95 billion;

• other income/(expense) of $200 million; and

• a tax rate of 26.5 percent.