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Apple exceeds modest expectations

July 24, 2013

Apple exceeded rather modest market expectations, but seems not able to keep up with its growth speed. Q3 net income fell (for the second quarter in a row) 22% to $6.9bn, but earnings of $7.47 per share beat the $7.30 median analysts’ estimate compiled by Bloomberg. Revenues rose 1% to $35.3bn, slightly higher than the $35bn consensus. For the current quarter, Apple predicts sales to come in at $34-37bn, compared to a median market forecast of $37bn.

In the last quarter, the California-based company sold 31.2m iPhones, compared to 26m in the same period a year earlier. Though iPhone sales topped estimates, the device’s average selling price fell 4% from a year earlier. Apple’s gross margin, the percentage of sales left after subtracting production costs, was 36.9%, matching the company’s target. Sales of the iPad dropped 14% from a year earlier to 14.6m. CEO Tim Cook promised to present new products in fall and 2014. The shares rose as much as 5.5% in extended trading.