Apple's gross margin solid; Americas growth slows, China improves

|About: Apple Inc. (AAPL)|By:, SA News Editor

FQ4 iPhone sales beat estimates, iPads were slightly light, Macs were in-line.

Gross margin was 37%, -300 bps Y/Y but at the high end of a guidance range of 36%-37%. FQ1 gross margin is expected to be in a range of 36.5%-37.5%.

Exc. retail, Americas sales only +1% Y/Y after rising 12% in FQ3. Japan remained strong: sales +41% Y/Y vs. +27% in FQ3. Europe flat Y/Y vs. -8%, Greater China +6% vs. -14%, rest of Asia-Pac -6% vs. -18%.

iPhone revenue ($19.5B, 52% of total) +17% Y/Y vs. +15% in FQ3. But iPad revenue ($6.2B) -13% vs. -27%. Also, Macs ($5.6B) -15% vs. -1%.

3.5M iPods were sold, revenue ($573M) -30% vs. -31%. iTunes/software/services ($4.3B) +22% vs. +25%, Accessories ($1.3B) +5% vs. -4%.

$7.8B was returned via dividends/buybacks.

AAPL -2.5% AH. FQ4 results, PR.