Apple Announces Mediocre Results

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Apple has just announced increased revenues for its fiscal second quarter ($43.6 billion vs. $39.2 billion last year) but considerably lower earnings ($9.5 billion vs. $11.6 billion last year). More dramatically, their gross margins have plummeted from 47.4 percent to 37.5 percent. Channel inventory of iPads was up by over a million units. Mac sales declined 2 percent.

And the future looks to be even worse. Apple is forecasting that revenues will be flat or slightly down next quarter and gross margins will continue to decline a bit to 36-37 percent. CEO Tim Cook calls this “frustrating.” To assuage shareholders, Cook announced that Apple would increase its share repurchase program to $60 billion and would raise its dividend by 15 percent. All told, its total “capital return program” has been doubled to $100 billion by 2015.

Bottom line: Apple is a bit adrift; competition is squeezing margins; and they have no good ideas about what to do with their cash hoard. Cook, in a rather pro forma tone of voice, insisted that Apple has lots of great ideas coming soon, but it’s hard to know what those might be. Apple TV? Anything else?

MOTHER JONES NEEDS YOUR HELP

We have about a $170,000 funding gap and less than a week to go in our hugely important First $500,000 fundraising campaign that ends Saturday. We urgently need your help, and a lot of help, so we can pay for the one-of-a-kind journalism you get from us.

Learn more in “Less Dreading, More Doing,” where we lay out this wild moment and how we can keep charging hard for you. And please help if you can: $5, $50, or $500—every gift from every person truly matters right now.

payment methods

MOTHER JONES NEEDS YOUR HELP

We have about a $170,000 funding gap and less than a week to go in our hugely important First $500,000 fundraising campaign that ends Saturday. We urgently need your help, and a lot of help, so we can pay for the one-of-a-kind journalism you get from us.

Learn more in “Less Dreading, More Doing,” where we lay out this wild moment and how we can keep charging hard for you. And please help if you can: $5, $50, or $500—every gift from every person truly matters right now.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate