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Apple reports higher than expected profits in third-quarter

The smartphone giant sells 31.2 million iPhones.

Apple has posted a net income of $6.9bn for the fiscal third-quarter ended 29 June 2013, a decline of 22 per cent compared to $8.82bn for the same period last year, despite record sales of its flagship product iPhone.

Net sales grew marginally to $35.32bn (2012: $35.02bn) of which international sales accounted for 57 per cent. Except Americas, the company saw fall in net sales in other geographies. 

Operating income declined to $9.2bn (2012: $11.57bn), while total operating expenses were $3.82bn (2012: $3.42bn).

During the quarter, the company sold 31.2 million iPhones, compared to 26 million in the same quarter a year ago. Apple also sold 14.6 million iPads during the quarter, compared to 17 million in the year-ago quarter, while 3.8 million Macs were sold during the quarter, compared to 4 million in the year-ago quarter.

Tim Cook, CEO of Apple, said: “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. 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.”

Peter Oppenheimer, CFO of Apple, said: “We generated $7.8bn in cash flow from operations during the quarter and are pleased to have returned $18.8bn in cash to shareholders through dividends and share repurchases.”

Meanwhile, Apple share price grew by 5 per cent to $437.94 in after-hours trade.