Submitted by Jon Reed on
Trading volume picked up a bit last Wednesday, perhaps in reaction to the good news that was divulged when Apple (NASDAQ: AAPL) announced its third quarter earnings last Tuesday via a conference call with CEO Tim Cook and CFO Luca Maestri. Shares finished last week at $97.67 (after opening the week at $94.99) and, as of this writing, are at a 52 week high of $98.88.
Once again, the quarterly numbers were up year-over-year. The company posted a revenue of $37.4 billion and quarterly net profit of $7.7 billion, up from $35.3 billion and $6.9 billion in the year ago quarter. Much of the success was due to iPhone sales, which broke a third quarter record, despite falling off from the second quarter. iPhone sales in BRIC countries (Brazil, Russia, India, China) were up 55%
YOY. Apple also bought back $5 billion worth of shares during the quarter, bringing the fiscal year total so far to $28 billion.
iPad sales, on the other hand, slipped, though this was experienced industry wide. Despite a drop off in sales, a recent study by internet marketing firm Chitika shows that Apple holds the lion's share when it comes to tablet usage. According to the study, 78% of tablet usage is attributed to Apple's products. Amazon came in a distant second with only 7.3%
Apple is reportedly in talks with payment industry companies, which is the final step in putting together a mobile payment system, in other words an "e-wallet." The company's iBeacons have been rapidly adopted by many major retailers across the country, and the iPhone 6 will likely have an NFC chip, which will facilitate fast and secure payments. Some industry analysts think that iOS 8 could come with Apple's version of an electronic wallet. iOS 8 will debut with the launch of the iPhone 6 in September.A filing with the SEC last week showed that Apple greatly increased its research and development spending during the third quarter. The company spent $1.603 billion in the June quarter, compared to $1.178 billion during the Q3 FY 2013, which is a 36% year-over-year increase, and a record expenditure for R&D. This is not surprising, considering Apple has many new products coming up, including some in new categories like the iWatch and CarPlay.
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Due to reported supply chain issues, mass production of the iWatch has been pushed back to mid/late November. Despite the delay, the smartwatch is still expected to make its debut sometime in October, it just may have a limited stock. The iPad Air 2 and next generation iPad mini have also been delayed for similar reasons.