Apple Inc. (NASDAQ:AAPL) won investors’ and analysts’ hearts Tuesday evening when it reported its June quarterly earnings, but compared to the disappointing numbers reported by Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT), and earlier reports by Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Ltd (NASDAQ:BBRY), Cupertino is looking pretty dominant in the tech world right about now. (We remembered some concern noted earlier.)
In the wake of reports by Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) last week which missed analysts’ estimates, there was some grave concern about Apple Inc. (NASDAQ:AAPL) during this quarter, as it seemed most of the tech sector was feeling the heat of the dog days of summer.
But despite going another quarter without any new device announcements or releases, Apple actually posted a much-better-than expected quarter, even setting a company record. Apple reported selling more than 31 million iPhones during the June quarter, which blew away the 26 million sold in the same period a year ago. Overall, Apple reported $35.2 billion in revenue and nearly $7 billion in profit during the quarter, with the revenue number beating analysts’ guesses by $200 million and was $300 million more than the same quarter of 2012.
The numbers are even more impressive when one considers the analysis by the BBC which showed that Apple Inc. (NASDAQ:AAPL) handsets sold for an average of $581 each during the quarter, more than $25 less than the same quarter a year earlier. While that helped lower margins to 37 percent from 43 percent, the better gross number is consistent with a dramatic increase in sales of the devices over 2012. As a result of the earnings report, Apple shares rose about 5 percent in after-hours trading Tuesday to about $440 per share.
While the news from the quarter was impressive compared to top competitors Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL) looks like it could have some headwinds going into the September and December quarters. While the company has indicated that it would reveal some new devices starting in September, which should revive the company heading into the annual holiday shopping season, there has been some information lately that seem to be potholes in the way of future growth, as reported by The Week in the U.K.
First, there is the lack of a deal with China Mobile Ltd. (ADR) (NYSE:CHL), the largest wireless carrier in the world in terms of subscribers. There had been speculation that a deal was coming soon based on Apple Inc. (NASDAQ:AAPL) CEO Tim Cook’s several visits to China and his proclamations of the importance of the China market to Apple and its future growth strategy.