Apple Reports Q2 2013 Earnings: Revenue Down Year-Over-Year for the First Time Since 2003 at $43.6 Billion in Sales and $9.5 Billion in Profit with an EPS of $10.09

Apple’s Q2 2013 Earnings: A Decade of Dominance Comes to an End

The world of finance has been abuzz with speculation about Apple’s fiscal Q2 2013 earnings, and now that the numbers are in, it’s clear that the Cupertino company’s streak of dominance is finally coming to an end. In this article, we’ll delve into the details of Apple’s earnings report, exploring the company’s revenue, net profit, and share price performance.

A Year-Over-Year Decline in Earnings

Apple’s Q2 2013 earnings have been met with a mix of surprise and concern. The company reported $43.6 billion in revenue, up from $39.2 billion in the same quarter last year. However, this increase was not enough to offset the decline in earnings per share (EPS). Apple posted EPS of $10.09, down from $12.30 in Q2 2012.

This marks a significant milestone for Apple, as it represents the company’s first year-over-year quarterly earnings decline in nearly a decade. The question on everyone’s mind is what this means for Apple going forward. Will this downturn be a temporary setback or a more long-term trend?

CEO Tim Cook’s Take on Apple’s Performance

During Apple’s customary earnings call, CEO Tim Cook acknowledged that the company’s growth has slowed. However, he also noted that Apple remains committed to its goals and is working to address the challenges ahead. Cook emphasized the importance of investing in research and development (R&D) and expanding Apple’s product lineup.

One key strategy Apple will be implementing is a share buyback program aimed at raising the value of its stock. This move is seen as an effort to boost investor confidence and mitigate the impact of the declining EPS.

Analyst Consensus vs. Reality

Before the earnings report, analysts had predicted that Apple would post EPS of $10.02 on revenue of $42.4 billion. While Apple managed to beat these estimates, with EPS coming in at $10.09 and revenue reaching $43.6 billion, there were still concerns about the company’s performance.

Apple’s own guidance from its last earnings release had forecasted revenues between $41 and $43 billion for Q2 2013. The company’s guidance for next quarter was more cautious, with Apple expecting to pull in between $33.5 billion and $35.5 billion in revenue and gross margin between 36% and 37%.

Device Sales: A Mixed Bag

While Apple didn’t release any new hardware during Q2 2013, device sales were still impressive. The company sold:

• 37.4 million iPhones
• 19.5 million iPads (a significant increase from the same quarter last year)
• Under 4 million Macs (down from 4 million in Q2 2012)

The lack of new standout products has weighed heavily on some investors’ minds, particularly with Samsung and HTC releasing impressive new smartphones. However, Apple’s loyal customer base and strong brand recognition continue to drive sales.

New Products on the Horizon?

Rumors have been circulating about new Apple products, including an updated iPhone and iPad lineup. While there is no official word from Apple, industry insiders suggest that we can expect significant updates in the coming months.

Conclusion

Apple’s Q2 2013 earnings report marks a turning point for the company. While the revenue growth was encouraging, the decline in EPS raises questions about the sustainability of Apple’s dominance. As the company continues to invest in R&D and expand its product lineup, it remains to be seen whether this downturn will be a temporary setback or a more long-term trend.

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