Record iPhone, iPad sales bolster Apple's Q1 financial results

Apple has posted its financial results for the first quarter of 2014, and the numbers are good. The company pulled in a record $57.6 billion over the holiday quarter. Apple also set quarterly records for iPhone and iPad sales. Here's a look at how the numbers compare to those from a year ago. (The company's fiscal quarters are ahead by three months; Q1'14 ended December 28, 2013.)

  Q1 2014 Q1 2013 Change
Revenue $57.6 billion $54.5 billion up 6%
Net income $13.1 billion $13.1 billion flat
Gross margin 37.9% 38.6% down 0.7 points

Although revenue was up 6%, profits were flat. Apple's gross margin shrank slightly, as well.

Year-over-year revenue increased 29% in China, 11% in Japan, and 5% in Europe. Revenue from the Americas was actually down 1% from a year ago, but that drop doesn't account for retail sales, which Apple lists separately. The company apparently considers its Apple Stores a world unto themselves.

Strong iPhone and iPad sales deserve much of the credit for the increase in revenue over last year. The Mac and iTunes/software/services divisions also delivered nice increases.

  Q1 2014 Q1 2013 Change
iPhone $32.5 billion $30.7 billion up 6%
iPad $11.5 billion $10.7 billion up 7%
Mac $6.4 billion $5.5 billion up 16%
iPod $973 million $2.1 billion down 55%
iTunes $4.4 billion $3.7 billion up 19%

Impressively, Apple enjoyed record iPhone sales despite facing supply constraints with the new iPhone 5S. Chief Financial Officer Peter Oppenheimer told the Wall Street Journal that sales of Apple's premium handset were better than expected, but that the company was "not able to come into a supply-demand balance until the end of the quarter."

Looking forward, Apple expects Q2 revenue in the $42-44 billion range with a 37-38% gross margin. Those estimates are pretty consistent with the $43.6 billion revenue and 37.5% gross margin Apple posted for the same quarter last year.

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