Apple reported its third quarter 2014 financial results today, selling 35.2 million iPhones, 13.27 million iPads, and 2.9 million iPods. The company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. In Q3 2013, Apple had revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share. Gross margin was 39.4 percent compared to 36.9 percent a year ago. International sales contributed to 59 percent of the quarter’s revenue.
“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” Apple CEO Tim Cook said. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” Apple CFO Luca Maestri said. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”
Despite the year-over-year increase in iPhone unit sales, the results notably included a year-over-year decline in iPad sales, and a modest 6% sequential increase for iPods. iTunes/Software/Services and Accessories categories both posted healthy 12% gains.