Apple declares jump in profit, despite surprise 16% drop in iPad shipments

Apple has announced a 7% jump in net profit along with a seven-for-one stock split, despite an alarming 16% year-on-year drop in iPad unit shipments.

The iPhone maker beat analysts’ forecasts by reporting quarterly revenues of $US45.6 billion, up from $US43.6 billion ($A49m) year-on-year, while net income grew to $US10.22 billion from $US9.55 billion for the March quarter last year.

The company also announced it sold 43.7 million iPhones, up 17% from last year, with the product line still $US26 billion in revenues.

However, slightly more alarming for the company was the fact it saw a 16% year-on-year fall in iPad unit shipments to 16.35 million units, with revenues slumping 13% to $US7.6 billion.

Meanwhile, despite the sluggish performance of many of its rivals in the PC industry, Apple’s Mac product line reported a 5% increase in shipments to 4.1 million units, with revenues of $US5.5 billion.

The performance came against the backdrop of recent IDC figures showing the PC industry recorded a 4.4% year-on-year slump in shipments during the quarter, with rival Acer seeing its shipments fall 20.2% year-on-year.

Revenues from iTunes, software and services has grown 11% to $US4.5 billion, with the unit now coming close to matching revenues from the Mac.

Alongside the generally strong results, the company announced a seven-for-one stock split, with shareholders receiving six additional shares for each share they hold on June 2, with split-adjusted shares to begin trading on June 9.

The company also announced an increase in its share buyback scheme from $60 billion to $US90 billion, and an increase in its capital return program from $US100 billion to $US130 billion.

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” Apple chief financial officer Peter Oppenheimer said in a statement.

“That brings cumulative payments under our capital return program to $US66 billion.”

This article first appeared on SmartCompany.