Apple sales and profit soared last quarter despite a steep decline in demand for the iPad.
The iPhone, Apple’s flagship product, continued to gain significant traction. Apple sold 35.2 million iPhones in the past three months, up 13% compared to the same period last year. Meanwhile, Mac desktop computers led the product line in terms of growth, up 18% with 4.4 million sold — well above Wall Street analysts’ forecasts.
But iPad sales fell by 9% to 13.2 million last quarter. Also hurting Apple’s bottom line was the fact that customers are buying cheaper iPads — the average selling price of an iPad fell by about $20 year over year. as well. That means the iPad mini continues to outshine the larger iPad, including the new iPad Air, released in October 2013.
The company’s profit grew 12% to $7.7 billion, or $1.28 per share, during its fiscal third quarter, which ended in June. Apple’s earnings per share was nudged up partly because of the company’s ongoing stock buyback program, which has lowered the number of shares held by investors by about 7% since last year.
Meanwhile, Apple posted $37.4 in revenue, up 6%. Profit exceeded Wall Street’s expectations, but sales missed forecasts.
For the current quarter, Apple said it expected sales of between $37 billion and $40 billion, also falling short of analysts’ forecasts. That sent shares of Apple a heading lower in aftermarket trading.
At the end of the quarter, Apple said it had more than $164 billion in cash.
