The good news is that the announced revenue of $37.5 billion was not only up from $36 billion year-over-year, but it beat expectations. Apple had projected to be somewhere in the $34 to $37 billion range. But, the company's gross margin was down from 40% to 37% year-on-year, which led to profits of $7.5 billion which is down from $8.2 billion in Q4 2012.
Apple set a new record in Q4 iPhone sales, likely because of that launch boost of the new iPhone 5s and 5c. iPhone sales were 33.8 million, which is up from 26.9 million in Q4 2012. iPad sales basically held steady at 14.1 million. But, the reason why profits were down is that the average selling price of the iPad is down, and the average selling price of iPhones is at an all-time low. Apple's revenue per device sold has been dropping, and kept doing so with the iPhone at $577, and iPad at $439.
source: The Verge