Apple Q3 13 hardware sales: iPhone strong, but iPad stumbles

Apple Q3 13 hardware sales: iPhone strong, but iPad stumbles

Summary: Apple sees strong iPhone sales for the third quarter, but sales of its tablets have fallen precipitously, suggesting either market saturation or consumer fatigue with the iPad.


Apple's Q3 2013 earnings are out, and the data provided gives us an insight into how well the company performed over the last quarter relative to historical data.

Let's begin with Apple's flagship product, the iPhone.

The iPhone did remarkably well, selling 31.2 million over the quarter, compared to 26 million in the year-ago quarter, and a record for the June quarter. This represents a 20 percent unit sales growth compared to the year-ago quarter, which resulted in a 15 percent increase in revenue.

"We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," said Tim Cook, Apple’s CEO. "We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014."

So far, so good. But this is set to change.

Moving on to the iPad, Apple sold 14.6 million tablets (iPads and iPad Minis combined), down from 17 million from the same period a year ago. This represents a 14 percent unit sales decline compared to the year-ago quarter, which resulted in a 27 percent drop in revenue. This is a particularly precipitous fall for the iPad, and could result from a number of factors, from market saturation to consumer fatigue with Apple's tablet.

During the last quarter Apple only managed to shift 3.8 million Macs, down a fraction on the year-ago quarter sales of 4 million. The Q3 quarter Mac sales represents a 7 percent unit decline and a 1 percent drop in revenue compared to a year-ago quarter.

iPod sales have also stalled. Whereas once Apple could have relied on non-holiday quarter sales in the region of 10 million (increasing to over 20 million during a holiday quarter), this quarter's sales of 4.6 million are down a whopping 32 percent compared to the year-ago quarter. iPod revenues are also down, a massive 31 percent.

The era of the iPod is definitely drawing to a close.

Bottom line:

  • Overall, quarterly sales for the iPhone was good, showing a very strong upward trajectories. Cumulative iPhone sales now exceed that of the iPod, with almost 400 million handsets sold.
  • The iPad experienced a larger fall in sales than I had expected, and no doubt the potential reasons for this will be pored over by pundits over the coming days.
  • Mac sales are holding at around the 4 million mark, showing some signs of a slight decline. Is the Mac suffering a similar fate to that of the PC? 
  • The era of the iPod is quite definitely drawing to a close. It had a good run.


Topic: Apple

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  • iPad is dead, run over by Surface.

    As I predicted, iPads are dumped from enterprise and consumers found it mostly useless.
    • Hahahahahaheheheheheh..emmm...


      You were _serious_?
      • Art

        There are a handful of comments on ZdNet whose postings have to be viewed as performance art, primarily, so catches detached from reality are their claims.
        • Performance Art

          Yep. Two of the three have already gotten paid and posted their comments.

          Where oh where is the 3rd stooge? Would that be Curly then?
          • Yes surface is ruining iPad sales

            With the millions unsold surface tablets, many are waiting to find them in stores under $100 :)... I will get one.
          • surface tablets

            I BUY ONE FOR 49.00 $
    • Post PC era?

      Well seems like even the iPad is feeling this 'Post PC' era pinch. PC's, and tablets are being shunned by consumers. Guess they're going back to the Etch a Sketch.

      I wonder what all those Post PC era evangelists will conjure up next.

      The moment you realize that consumers don't have the cash to burn, and that they're generally happy with their 2/3/5 year old PC/Tablet, all this anti Microsoft banter will come to an end and we can realize that neither Microsoft, Samsung, Nokia, or Apple is dead. The only thing that is dead is the brain cells of the person who cooks up elaborate articles based on bias and their insatiable need for attention.
      Dreyer Smit
    • Re: iPad is dead, run over by Surface.
    • BS

      "Moving on to the iPad, Apple sold 14.6 million tablets (iPads and iPad Minis combined), down from 17 million from the same period a year ago. This represents a 14 percent unit sales decline compared to the year-ago quarter..."

      You conveniently ignore statements by Apple's management. Did you not listen to the analysts call, or did you choose to ignore it to make a story?

      There was a 14 percent fall in SELL IN to the supply chain. There was a 4 percent fall in sell out.

      Since the year ago quarter started with the release of the iPad 3, and the current quarter is selling versions that have been out for 6 months, then a 4 percent fall is a pretty impressive result.

      So no evidence of a problem, and no evidence o enterprise dumping it or consumers finding it useless.

      Just lots of evidence of fear driven hatred from competitors what just can't get close.
      Henry 3 Dogg
      • Re: There was a 14 percent fall in SELL IN to the supply chain

        So they had been ‌previously pulling the Microsoft trick of stuffing the channel and counting ‌those shipments as "sales", and now it has backfired on them. Why is that a good ‌thing?
    • Funniest thing OwlllllllNet has ever posted

      1 million Surface RTs sold, 5 million unsold vs 150 million iPads sold to date. Obviously, math isn't one of your strong points.
    • funniest post I've read in a long time

      Thanks for that.......... Iaughed long and hard when I read that. I'm still chuckling!! I personally considered the surface when the price was cut..........but it simply has so much less to offer than the Ipad, the Ipad mini, or many of the other tablets out there that I soon realized that even at $350 it is still far to expensive for what it is to be worth buying. MS shot themselves in the foot by releasing an inferior product, elegant though it was, at a premium price. It's way too late to pull the fat out of the fire. I'll buy one at $199. Howard
  • Not so bad?

    Profits down 22% for the quarter (source: CNN). iPod, iPhone, and iPad sales down two quarters in a row. Mac sales down three quarters in a row.
    Sir Name
    • Apple's products have been too incremental

      and at too high a price point for customers to keep coming back over and over again. Siri was a dud, as were Apple's new Maps. Apple has milked its customers for the past several years. I think there is general consumer fatigue focused on Apple, in particular, and their sales figures also reflect the overall market's decline and lack of consumer disposable income.

      That Apple TV isn't coming anytime soon to save the day, because the television industry is busy trying to save itself and its bundling/pricing business model.
      • actually

        I tried Apple maps the other day again and was shocked how much better it has become. Google is trying to catch up by linking earth to maps in android but it falls short.

        I think the market is pausing to see if something "better" than ipad materializes. That something could be x86 tablets that work. I have one running 8.1 and it is pretty nice.
      • It time to bust out real features that matter

        and make the Logo on the back of iPads GLOW like Macbooks
        then do it on iPhones as well
    • Sales down.

      Isn't it weird that last year, Apple profits were up, and their stock went down, and this year, sales are down, profits down, and their stock goes UP. Just proves there is no connection between stock prices and reality.
      • Stock prices relate to EXPECTATIONS, not reality

        If a company is expected to drop its profits by 50% and they drop by 45%, the share price will go up because the company has done better than expected.
        If its profits rise by 45% but they were expected to rise by 50%, the share price drops because the company did worse than expected.
        I have personal experience of this; shortly before the annual figures were released, I bought some shares in a company that was doing very well. The share price fell because the company was expected to do even better. You can't beat experience as a teacher!
  • It is official

    apple is irrelevant.
    • No, you cannot type. What you meant to write was this

      toddbottom3 is irrelevant.

      You do realise of course that you are one of the main reasons zdnet is a joke.