iPhone sales boosts investor confidence in Apple

Apple posts revenues of $35.3bn and net profit of $6.9bn for the quarter ending June 2013, sending the share price up nearly 5%

Apple has posted revenues of $35.3bn and net profit of $6.9bn for the quarter ending 29 June 2013, sending the share price up nearly 5% in after-hours trading.

Revenues were up less than 1% and profits down 21% compared with the same period the year before, but investor confidence was boosted by iPhone sales, according to the BBC.

Apple sold 31.2 million iPhones, a record for the June quarter and 20% higher than iPhone sales in the same period in 2012.

Analysts said the better-than-expected results – and iPhone sales in particular – had helped allay some fears of a slowdown in Apple's growth rate in the face of competition from rivals such as Samsung.

Apple’s earnings-per-share were $7.47, beating analysts’ estimates of $7.32.

Apple sold 14.6 million iPads during the quarter, down 14%, and 3.8 million Macs, down 5% compared with the same period a year ago.

Analysts said Apple is facing increasing competition from low-cost Chinese smartphone makers. Research firm IDC estimates that 66% of smartphones sold in China next year will cost less than $200.

Some analysts see the introduction of new products as critical to Apple maintaining robust growth.

Tim Cook, Apple’s chief executive, indicated that the company is working on new products. “We are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014,” he said.

Cook also highlighted the record June quarter iPhone sales and the “strong growth” in revenue from iTunes, software and services to $3.99bn.

Peter Oppenheimer, Apples chief financial officer, was also upbeat. “We generated $7.8bn in cash flow from operations during the quarter and are pleased to have returned $18.8bn in cash to shareholders through dividends and share repurchases,” he said.

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