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Apple CEO sees more opportunity on top of $58B Q2 sales

Posted: 29 Apr 2015 ?? ?Print Version ?Bookmark and Share

Keywords:Apple? iPad? iPhone? Samsung? revenue?

As expected, Apple logged record sales in Q2 as result of the roaring sales of the iPhone 6. Amounting to $58 billion, the company reported a 27 per cent increase in sales compared to the same quarter last year. Profits came up at $13.6 billion, despite the fact that iPhone and Mac sales dropped nearly 20 per cent each from the previous (very strong) quarter and iPad sales fell 40 per cent. Sales were down sequentially in all geographic areas except China that posted a growth of 4 per cent.

Sales of iPad continue to fall with no upturn in sight and Apple declined to give any new figures or forecasts for Apple Watch sales, although it did note the product has below average profit margins for the company. Despite those facts, the company reported a great quarter.

Given the declines and the lack of any major new products in the next quarter, Apple forecasts revenues will decline to $46-$48 billion in the next quarter. That's still well ahead of sales of about $37 billion for the June quarter last year.

Apple estimated gross margins in June will fall to about 39 per cent, down from 40.8 in Q2. Lower than average profits for the Apple Watch was one of a handful of factors for projecting the overall profit decline for the coming quarter.

Injecting some good news into the quarter, Apple announced it would expand its programme to buy back stock by $50 billion to a total of $140 billion. Apple will fund the programme through a mix of cash and debt in and outside the United States. It also will increase by 11 per cent the stock dividends it will pay starting in May.

Sales of Apple devices

The peak has passed for iPhone 6 growth and the bottom has yet to be seen for iPad sales.

Cook bullish on the watch, iPad, iPhone 6

CEO Tim Cook expressed optimism about all Apple's products, however he gave no figures for Apple Watch sales so far. In addition, he said he believes iPad sales will return to growth at some point but he was not sure when.

As for the iPhone, he noted only 20 per cent of iPhone users have upgraded to the current iPhone 6. "To me that just screams opportunity," he said.

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