apple hq headquarters

As expected, Apple is out with its financial report for Q3 2014 this afternoon. In a press release issued just a few moments ago, the company announced that it sold 35.2 million iPhones, 13.2 million iPads, and pulled in $37.4 billion in revenue during the three month period.

Apple beat its own guidance, and met projections on just about everything but iPad numbers. It would seem that the problems continue with the popular tablet line, as sales came in more than 1 million units less than expected. We have a full breakdown of the numbers below…

  • iPhones: 35.2 million versus 35.9 million expected
  • iPads: 13.2 million versus 14.4 million units expected
  • Macs: 4.4 million versus 3.9 million expected
  • Revenue: $37.4 billion versus $37.98 billion expected

Here are some comments from CEO Tim Cook and CFO Luca Maestri from the release:

“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,” said Tim Cook, Apple’s CEO. “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,” said Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.” 

apple summary data

The third quarter is typically the most lackluster for Apple, due to the nature of its iPhone and iPad release cycles. The company is expected to announce new smartphones in mid-September, which means it should become available at the tail-end of the fourth quarter.

Apple’s earnings call will start in just a few minutes. If you’d like, you can listen to a live webcast of the call via Apple’s online investors portal. Or, as usual, you can continue to check back with iDB later this afternoon for more commentary and major announcements.

  • Taf Khan

    All this and that’s without the iPhone 6. The 4th quater is gonna be even better..

  • Yujin

    And this was the slowest quarter since everyone is holding off for iPhone 6. Can’t wait for iWatch, iPhone 6 and maybe iTV

  • Litchy

    The lower iPad sales kind of represent what I think of iPads right now. Great devices, work like they should, love it when I use one… still don’t feel the urge to buy one… why should I? Using my iMac or MacBook for serious work and my iPhone for reading, texting, surfing on the go. I’m sure I could think of more than one occasion where an iPad would be a bit more handy than my iPhone or MacBook… but not enough to justify carrying it around all the time

    • Rowan09

      Being an owner of an iPad I don’t see a reason to update and I have the 3rd gen that’s the real reason.

      • Litchy

        You’re right. Many people have iPads and are perfectly fine with it. No upgrade needed right now

      • Markus Hudobnik

        I would normally agree, but the turnaround rate for iPads (and apple products in general) is pretty high. I sold my 4th gen iPad for $450 and then bought an air. I also plan on doing this for the next iPad.

      • Litchy

        One of the things I love about Apple devices 😉 Resell value is great

      • In the same boat as you. I don’t use my iPad extensively and just use it for reading news in Reeder and surfing the web in Safari and checking emails and occasional messaging. I really see no benefit to upgrading my iPad at all. The only thing that might make me upgrade is better specs or my iPad becoming an unsupported device that can’t use the latest version of iOS…

      • Rowan09

        Since almost all the iPads will get IOS 8 it’s more of a reason to hold on.

      • I’ll hold on a little longer but if Apple adds more ram to a newer iPad model to fix the tabs reloading in Safari then that’s an instant sale from me 😉

  • Melvco

    Slower iPad sales I think have a lot to do with their lifespan. Most people don’t buy a new one every 1-2 years like they do with smartphones. My mom still uses her iPad 2, which is now almost 4 years old.

    • aw81

      True, I can’t justify spending the money on a new iPad that i could put towards an iPhone or macbook.

    • Capirexz

      Worth to stay with it for almost 4 years.
      Upgrade after iOS 9 is out.

  • PhoneTechJay

    I think the iPad sales are settling out because everyone that needs/wants one already has one and they only buy newer models to upgrade. The downside for them is that they make the device so good that you really don’t need to update every year.

  • jack

    “As expected…” Expected by who?

    • Litchy

      Analysts 😉

  • Very impressive iPhone sales for an almost 1 year old product. Let’s see how staggering it will be with the next gen.

    As for iPad, it’s no surprise, the same reason why Windows PC sales are declining; barely anyone sees the need to upgrade them so long as they work.

  • Litchy

    Why shouldn’t it^^ it’s true. They did pretty well but not 100% like expected. The Stock is still quite unimpressed and on the same level as before