Apple sees profits fall 9pc despite record iPhone sales

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The company sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million for the same period last year – although profits fell nine per cent

Apple has reported a nine per cent fall in profits despite seeing a record number of fourth-quarter iPhone sales.

Net profit for July, August and September was $7.5 billion (£4.7 billion) compared to $8.2 billion (£5.1 billion) for the same period last year.

Revenues rose to $37.5 billion (£23 billion) from $36 billion (£22 billion), although gross margin (the profit per product) fell from 40 per cent to 37 per cent.

The company sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter – a 26 per cent increase.

Apple also sold slightly more iPads during the fourth quarter of 2013 than in the same period in 2012 – 14.1 million compared to 14 million.

Mac computer sales fell, however, to 4.6 million from 4.9 million in the same quarter last year.

CEO Tim Cook said: “We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones.

“We’re excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS.”

CFO Peter Oppenheimer said: “We generated $9.9 billion [£6.2 million] in cash flow from operations and returned an additional $7.8 billion [£4.8 million] in cash to shareholders through dividends and share repurchases during the September quarter, bringing cumulative payments under our capital return program to $36 billion [£22 billion].”

 

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