Apple’s Q3 2013 earnings announcement was made yesterday evening, and the results were impressive all around. First, Apple sold 31.2 million iPhones in Q3, which is an impressive gain of 5 million additional iPhone sales from the same quarter last year. As for iPads, Apple fell short of Wall Street expectations – selling only 14.6 million instead of the 17 million Apple sold in Q3 2012.
Overall, our favorite fruit company made an impressive $35.6 billion in sales from Q3, besting Wall Street expectations by about three-fifths of $1 billion, or $600 million. While Apple didn’t take over the world with its besting Wall Street expectations, Apple’s sales are a positive sign that things may indeed be looking up for Cupertino.
We cannot forget to mention the iPod. While the iPod is still a niche product, in the eyes of many, it has done more than bring in niche sales for Apple: in Q3 2013, Apple racked up a total of 4.9 million iPods sold, which fell short of the expected 6.8 million that Apple met in the same quarter last year. The iPod may be a small device, but its price is anything but. The company made $1.6 billion in iPod sales alone from Q3 – an impressive sign for Apple, especially when you consider that MP3 sales are in huge decline.
One thing that we can see from the earnings report is that first, the iPhone is still Apple’s largest-selling product. No matter how many iPads are made, whether large or mini-sized, the iPhone is still the one product that sets Apple apart from its competitors. We’ve seen investor confidence shrink in recent days, with Apple’s stock price having fallen from $700 as of September 2012 to around $430 currently. The $430 stock price is actually a positive rebound for Apple, considering that prices fell to somewhat under $400 at one point in recent weeks.
Next, Apple’s earnings announcement shows that iPhone users are still loyal, regardless of their feelings about iOS and their desire to see more customization in iOS 6. I’ve read a number of tech announcements by well-known tech writers who have said that Apple did not provide them with a thrilling experience anymore, causing them to leave Apple.
Surprisingly, there are many who are still with Apple, despite the numerous articles I’ve read of individuals who have departed Apple to join Samsung/Android or the Windows team. In short, Apple has a winner in the iPhone; despite its usual operations and design, Apple iPhones and iPads have incredible battery life, form factor, as well as timely updates. These things are not often said about Android or Windows devices.
Finally, Apple CEO Tim Cook was asked about the saturation of the US smartphone market. His response? “I don’t subscribe to the common view that the high end…has hit its peak.” Apple not only sold impressive numbers of its products, but also made a total of $667 million in Apple retail stores worldwide in Q3. If Apple customers are this loyal now, how much more loyal will they be when Apple releases the iPhone 5S and iOS 7 this Fall? Just a thought.