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Business

Apple’s profits fall despite iPhone gains

Timothy D. Cook, Apple’s chief executive, said the company is in a strong position for the critical holiday season.

reuters/file 2013

Timothy D. Cook, Apple’s chief executive, said the company is in a strong position for the critical holiday season.

SAN FRANCISCO — Apple Inc.’s earnings report Monday offered the first hints that its strategy of releasing two new iPhones in September instead of one might result in stronger overall revenue.

Apple reported revenue of $37.5 billion in the latest quarter, up from $36 billion in the same quarter a year ago.

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Still, the two phones did not help lift the company’s profit. Apple earned $7.5 billion, or $8.26 a diluted share, in the latest quarter, down from $8.2 billion, or $8.67 a diluted share, during the same quarter last year.

The company said it sold 33.8 million iPhones, up from 26.9 million in the same quarter last year. Wall Street analysts had expected that Apple would sell 29 million to 38 million new iPhones.

But the prices for those iPhones averaged $577, a 7 percent decrease from an average price of $618 a year ago.

The lower profit may also be because of slightly lower sales of Macs. The company said it sold 4.6 million Macs, compared to 4.9 million in the same quarter last year. Apple’s iPad sales were roughly flat, at 14.1 million, but overall revenue for its iPads declined 13 percent.

The company beat the expectations of Wall Street analysts. They had expected earnings of $7.93 a share and revenue of $36.84 billion, according to a survey of analysts by Thomson Reuters.

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Shares in the company fell about 2 percent in after-hours trading. The stock is down about 25 percent from its peak reached 13 months ago, reflecting Wall Street’s worries about fiercer competition in the smartphone and tablet computer markets.

“We’re pleased to report a strong finish to an amazing year with record fourth-quarter revenue,” said Timothy D. Cook, Apple’s chief executive.

Apple has positioned itself aggressively for the coming holiday quarter, the most lucrative time of year for hardware makers.

Following the release of the iPhone 5c and iPhone 5s in September, Apple is set to release two new iPads in November. It also released new Mac laptops last week.

Material from the Associated Press was used in this report.

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