Yes, it is true, Apple Inc. (NASDAQ:AAPL)‘s number of shipments increased. IDC states:
Apple outperformed IDC’s most recent projections for the quarter, shipping 19.5 million units compared to a forecast of 18.7 million units. The company, which historically has experienced a steep drop off in first-quarter shipments (following strong holiday sales in the fourth quarter), saw some smoothing of that seasonality this year. Sustained demand for the iPad mini and increasingly strong commercial shipments led to a better-than expected first quarter for Apple.
As usual Apple Inc. (NASDAQ:AAPL)’s revenue increased, but interestingly the company experienced its first drop off in quarterly profits since 2003. In Q1 of last year, Apple Inc. (NASDAQ:AAPL) posted profits of $11.6 billion, or $12.30 per share, on revenue of $39.2 billion. This year? Profits of $9.5 billion, or $10.09 per share, and revenue of $43.6 billion. International sales accounted for 66% of the companies quarterly revenue, and Apple Inc. (NASDAQ:AAPL) then announced it would increase its buyback program from $10 billion to $60 billion.
Let’s look at how its tablet sales may not have actually increased. The chart below shows how other companies actually gained far more market share than Apple Inc. (NASDAQ:AAPL). The shipment measurements are in millions.
(Source: IDC)
Amazon.com, Inc. (NASDAQ:AMZN) tripled its shipments from a year ago, and posted solid earnings as a result. Yes, Amazon’s earnings were $0.10 lower than a year ago, but they were also $0.10 higher than expected. Total sales of $16.1 billion were slightly below analysts’ expectations, but the company increased its revenue guidance by $1.7 billion in Q2.
Amazon.com, Inc. (NASDAQ:AMZN) doesn’t typically release the number of Kindle devices it sells, but the company seems to be far more focused on devices than in the past.
PC sales have been persistently decreasing recently, and IDC reports that PC shipments declined by 13.9% from the same period in 2012. Despite these figures, Microsoft Corporation (NASDAQ:MSFT) still posted solid earnings in Q1. The company pulled in $20.5 billion in its fiscal third quarter, 18% higher than in 2012. Microsoft Corporation (NASDAQ:MSFT) also posted diluted earnings per share of $0.72, which represents a 20% increase.
In fact, Microsoft’s entertainment and devices division was up 56% from the year-ago quarter. As the chart above shows, Microsoft wasn’t even in the market for tablet devices in 2012, but has since gained a 1.8% share.
Are Apple’s shipments deceiving?
Tablets and other mobile devices are in high demand. They increased more than 242% in just one year. Despite Apple’s increase in shipments, it still lost 18.6% in market share. Samsung actually shows the best tablet results as it increased shipments by nearly 383% and gained an additional 6.7% market share. Microsoft Corporation (NASDAQ:MSFT) just got started in the tablet business, and Amazon.com, Inc. (NASDAQ:AMZN) is gaining traction. So, I ask the question: Are Apple’s tablet shipments as good as they seem?
In looking at operating systems, Android now out ships iOS, with Android taking 56.5% of the market and iOS taking slightly less than 40%. Despite all of these factors, Apple Inc. (NASDAQ:AAPL) still holds more than double the market share of second-place Samsung, despite falling more than 4% since just last quarter.
The Foolish bottom line…
Whichever company can boost its mobile-device sales will likely see the most success. In 2012, Apple generated more than 75% of its income from mobile devices (iPads, iPhones, and iPods). With its market share being slashed, what companies will take its percentage of the pie in 2013? Answer that, and you likely will find the best investment opportunity out of these companies.
The article Apple’s Tablet Shipments Fall Again originally appeared on Fool.com and is written by Tyler Wofford.
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