Apple had its first profit decline in a decade in Q2, amid accelerating competition from Samsung Electronics. Net income dropped 18% to $9.55bn or $10.09 a share. Chief Executive Tim Cook said new products will come later this year and throughout 2014. Furthermore, Apple announced it will return an additional $55bn in cash to share-holders, using more of the company’s $145bn in cash. The company will have returned $100bn, including past buybacks and dividends, through 2015.
Apple sold 37.4m iPhones, compared with 35.1m a year earlier, and 19.5m iPads (forecast 18.5m). It also sold 4m Mac computers (4.1m estimate). Apple’s gross margin narrowed to 37.5% in Q2, from 47.4% a year earlier. In Q3, the margin will be 36-37% (consensus 38.7%). Shares were little changed in late trading after rising as much as 5.9%.