Samsung passes Apple as most profitable smartphone maker
Apple sold 31.2 million iPhones last quarter but still made less than Samsung
Apple reported its third-quarter profits today and the company made $6.9 billion in profits, which actually puts it behind Samsung and its estimated $8.3 billion in profit. Apple made profits of $8.8 billion for the same time last year.
Apple said it sold 31.2 million iPhones for the three-month period, which is a record for the June quarter. By comparison, last year at this time, Apple sold 26 million iPhones.
Apple didn't break it down but it appears that many of those sales were older models of the iPhone, which could have led to a dip in its profits. We expect the iPhone 5S to land in late September or in early October and that will surely give it a massive boost in new sales.
Apple may also be working on a cheaper iPhone, which could be called the "iPhone lite." The rumors suggest this will be cheaper to buy unsubsidized and it would make iPhones more accessible for millions of people in emerging markets. It likely won't have as good margins, though, so it could also have an impact on profits.
Apple sold 14.6 million iPads during the quarter, a dip from the 17 million it sold during the same quarter last year. Again, we expect some refreshes to the iPad mini and the larger-sized iPad to come out in the fall.
Apple also pointed out "strong growth" in revenues from the its iTunes, Software and Services division. This will be interesting to watch because Apple used to have to pay a lot to get the music or video content to sell through iTunes but the popularity of app sales are likely much more profitable for Apple.
While some of the year-over-year numbers may not look promising, it's important to remember that Apple has changed up its release schedule a bit. We haven't really seen a major new product from Apple hit the market since last year -- exclusing the new MacBook Air laptops.