Apple posts record-breaking profits at Q1 2013 earnings call
Apple’s Q1 2013 earnings call show a company moving from strength to strength with growth in all key areas of its business
Despite claims to the contrary Apple’s iPhone business is thriving, according to the company’s Q1 2013 earnings call, which shows healthy growth across the entirety of Apple’s mobile business.
The only aspect of Apple’s business that did not grow in Q1 2013 was its PC business, with profits dipping from $4.9 to $4.1 billion. Apple said this decline was to due to delays associated with getting its new iMac to market.
Apple’s iPhone business grew massively during the quarter no doubt helped along by the release of the iPhone 5, topping out at 47.8 million units compared to 26.9 for the previous quarter.
Apple’s iPad business also saw impressive growth, according to the figures, up from 14 million in Q4 2012 to 22.9 million in Q1 2013. Again, no doubt, helped by the release of the iPad Mini and iPad 4.
‘Apple ended the calendar year on a real high, refreshing nearly its entire line of products, with the launch of a new Apple Mac, iPhone, iPod and iPad, a clear indication that consumer demand has been met,’ said Fred Huet, Managing Partner at Greenwich Consulting.
He added: ‘this is even more impressive considering that this quarter is a week shorter than last year’s when comparing results, a fact that is often easy to overlook.’
Many analysts predicted Apple’s first drop in profits for nine years at this quarter's earnings call, citing decreased demand for the iPhone and a worse-than-expected consumer reaction to the iPad Mini.
Obviously that didn’t happen with Apple posting the largest corporate earnings year in human history. And despite all of this the company’s shares still declined by 11 per cent during the call.
Going into 2013, Apple needs to prove to investors that it can maintain this dizzying growth period. Key to how it achieves this will be how it develops its iPhone business in the coming 18 months.
‘As the smartphone market continues to mature and with the iPhone remaining the company’s key profit driver, it is essential that they now do what they do best, product innovation,’ said Huet.
Apple is expected to release the follow up to 2012’s iPhone 5 in Q2 of 2013.