Apple profit drops on slow iPhone growth
Apple’s net profit dropped during the second quarter of 2013 as the company’s iPhone shipment growth slowed down, based on year-over-year comparisons.
Apple recorded a profit of $9.5 billion for the second quarter ending on March 30, falling from the $11.6 billion profit reported in the same quarter last year. The company’s revenue was $43.6 billion, growing from $39.19 billion in the year-ago quarter. Analysts expected revenue to be $42.33 billion.
IPhone sales grew, totaling 37.4 million units, compared to 35.1 million in last year’s second quarter; however, in that period last year unit shipments increased by 88 percent year over year. Mac sales were flat, totaling just under 4 million units during the quarter.
The company recorded fast growth with iPads, with shipments totaling 19.5 million during the quarter, compared to 11.8 million in the previous year’s quarter.
Apple CEO Tim Cook in a statement said that new products are in the pipeline.
“Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline,” Cook said.
Announcements could be made at the company’s annual Worldwide Developers Conference, for which a date hasn’t been announced. WWDC is usually held in June in the San Francisco Bay Area.
Apple had no major product releases in the previous quarter. In February, the company upgraded the MacBook Pro with Retina display and MacBook Air laptops with faster processors and more storage.
Apple expects revenue between $33.5 billion and $35.5 billion for the third quarter.
Apple also announced that its board of directors approved a plan to return capital of $100 billion to shareholders through the end of 2015. That is an increase of $55 billion from a previously announced program to return capital to investors.