Apple Store Front logo San Francisco

Apple announced its financial results for Q4 2014 this afternoon, and for the most part it beat the Street’s expectations. The company sold 39.3 million iPhones and pulled in $42.1 billion in revenue during the three month period, and iPad sales fell short at just 12.3 million.

We’re just finishing up the conference call, where Tim Cook, CFO Luca Maestri and other members of the executive team have discussed Apple’s performance, and offered some insight into its future. As usual, we’ve rounded up the to 15 most interesting points for you below.

  • Apple made 20 acquisitions in 2014, 7 alone in September quarter
  • Q4 saw the strongest revenue growth rate in seven quarters
  • All-time quarterly record for Mac sales, highest marketshare since before Windows 95
  • IDC: iPhone has 69% share of US commercial smartphone market
  • Baidu has deployed iPhone to 20,000 employees, has built 30 in-house apps
  • Apple still having trouble balancing supply and demand for new iPhones
  • iPad sales fell for third consecutive quarter
  • iTunes Store recorded all-time record billings in Q4, up 22% year over year
  • Total registered developers approaching 10 million, 22% growth
  • Retail stores generated $5.1 billion—a new record for the September quarter
  • Average revenue per store was $11.9M, with an average of 18,000 visitors per store per week
  • Apple opened 10 new stores in Q4, now has 437 stores
  • Apple now has $155.2 billion in cash and marketable securities, down $9.3 billion sequentially
  • Apple is going to change the way it reports earnings: iPhone, iPad, Mac and Services will be separate line items, and a new “other category” will include accessories (including Beats), peripherals, Apple TV, iPod and Apple Watch
  • Cook notes that he’s lumping Apple Watch into “other” category partly because he doesn’t want to share details with competitors

Again, it was overall a great quarter for Apple, and Wall Street agrees. Shares of APPL were up over 2% for the day, and climbed an additional 1.4% after hours. Additionally, with new iPhones and iPads headed into the holiday season, expect next quarter to be monstrous.

  • n0ahcruz3

    Like i said.. iPad is slowy dying. No more growth in this area. Unless of course apple will release something compeling feature. iPad to me is just a big ipod touch. U get a 6+ and theres no reason to get an ipad(imo).

    • CollegiateLad

      Naw… It will level out to around 10 million units a quarter. There will be spikes around the holiday season. iPads and computers in general will always have slower upgrade cycles – People just don’t buy computers every year. I’m guessing they’ll do around 20 – 25 million for the holidays. It will be a money maker for many many years to come in my opinion.

      • n0ahcruz3

        You dont get the year over year sales decline.. Thats where u measure growth. Face it ipad sales had peaked

      • Nick

        And you know what? That’s okay.

      • n0ahcruz3

        Yes. Its ok lol i dont run the company nor i bought apple shares.

    • Rowan09

      The iPad isnt dying it’s just not much left to do with it. If they make a Surface Pro device it will impact the Mac sales. I have the 3rd generation and still don’t see a reason to have to upgrade to the newest models. I still own my old Dell XPS laptop. If it works I don’t see a reason getting a new one and this is the same issue with the iPad in my opinion.

    • iBanks

      Surely it’s not, it’s still and will continue to be the most selling tablet of all. Though iPad may be decreasing, the others aren’t increasing. Most people don’t feel the need to refresh their tablet every year as they do or want to do with their phones.

      • The same thing applies to all the PC sales people were saying is “dying”…

  • CollegiateLad

    Stellar quarter…

  • alaska99801

    Alright NoahCruz….i guess with your name you are a true visionary, hut let me put the ipad in perspective for you in simple economy terms and speech.

    Company A comes out with a new widget. New widget sells like hot bread. After four years of very fast growth, sales slow down to more realistic levels. Market has matured, the replacement cycle of said widget is longer than usual for other widgets within that family. Growth continues but at a slower pace.
    When other companies manufacturing similar looking widgets have their sales contract in real numbers, company A sales are still growing but when compared to the earlier years of new growth, people see something negative when in reality company A is the only one making money with their widget from four years ago.
    Only company A is treated this way by the village fools. All others are treated with a different yardstick. I guarantee that widget sales will stabilize and grow at normal pace for this type of widget and replacement cycles will ensure the happy decision of the widget business.

    • CollegiateLad

      We’re probably waiting our time… lol

    • n0ahcruz3

      Ipad has peaked. Its the year of the phablet. Even apple knows this hence the 6+. If they come up with something that is truly revolutionary and further differentiate ipad OS from iphone OS. Until then they are both iOS Same features same functionality.

      • z1n

        Why would you differentiate your different OS’s? Every company is trying to get a congruent user experience across their products (E.G. Windows + metro, Yosemite with it’s iOS similarities) especially as personal tech is getting closer to the ideal ‘thin-client’ scenario.
        The truly revolutionary company is one that regardless of what device you use, things feel/look/work the same. Integration is key and Apple are doing damn well making integration seamless.

  • Chang in Charge

    wow 20 acquisitions in 2014 7 in September thats crazy

  • Chang in Charge

    the acquisitions are always the most interesting part to me who they acquire and how they will use that

    • BoardDWorld

      Nice photo (avatar)

    • Benjamin J Schwartz

      Totally! Looking at who they acquire now can give insight into products years down the pipeline. PA Semi certainly comes to mind. Of course, not all purchases and deals bear fruit, as this GT Advanced sapphire debacle has shown.

  • I like how some people are finally coming to realize that the slow growth of the iPad is due to people not seeing a point in upgrading…that’s how it has been with the Laptop/Desktop market for years now, but some people didn’t realize that until it happened to Apple.

  • redjazon

    I got the iPhone6 and I actually don’t see the need for my iPad Air anymore much more to upgrade. I’ll wait for next iPad release hopefully it is worth it 🙂