Strong sales of Apple iPhones boosted the manufacturer's second quarter results, although iPad sales fell in the same period.
The manufacturer defied analysts’ expectations reporting 43.7 million iPhone sales globally, against analysts’ projections of around 38 million.
Apple posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, compared to revenue of $43.6 billion and net profit of $9.5 billion, in the same period last year.
Gross margin was 39.3% compared to 37.5% in Q2 2013. International sales accounted for 66% of the quarter’s revenue.
Apple reported that whilst its iPhones sales were up 17% to 43.7 million, iPads sales were lower than expected at 16.35 million. The company said the fall was due to channel inventory changes. Sales of Macs were up 5% to 4.1 million whilst iPods continued their predicted fall, down 51% to 2.7 million. Meanwhile iTunes and Apple’s software services continued their upward trajectory, with sales of $4.57 billion, up 11%, whilst accessories are up 3% to $1.4 billion.
The company also announced a 7 for 1 stock split, effective from June 2, which will make Apple’s shares affordable for more investors. The board of directors also increased its share repurchase authorization to $90 billion (from $60 billion) and declared a dividend of $3.29 per common share, an increase of about 8%, payable on May 15.