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Apple reported on Tuesday, another bumper quarter as profit
surged 78%, boosted by strong initial sales of its
iPad tablet computer and the latest version of its
smartphone, the iPhone 4.
The company also issued
a strong forecast for the current quarter, despite
concerns that the iPhone 4's antenna problem may
slow growth. The tech giant said Apple's revenue in
the quarter ended June 26th rose 61% to $15.7bn.
The net quarterly profit was $3.25bn, or $3.51 per diluted share.
The results compare to revenue of $9.73bn and net quarterly profit
of $1.83bn, or $2.01 per diluted share, in the year-ago quarter.
Gross margin was 39.1 per cent compared to 40.9 per cent in the
year-ago quarter. International sales accounted for 52 per cent of
the quarter’s revenue.
Apple sold 3.47m Macs during the quarter, representing a new
quarterly record and a 33 per cent unit increase over the year-ago
quarter. The company sold 8.4m iPhones in the quarter, representing
61 per cent unit growth over the year-ago quarter. Apple sold 9.41m
iPods during the quarter, representing an eight per cent unit
decline from the year-ago quarter. The company began selling iPads
during the quarter, with total sales of 3.27m.
“It was a phenomenal quarter that exceeded our expectations
all around, including the most successful product launch in Apple’s
history with iPhone 4,” said Steve Jobs, Apple’s CEO.
“iPad
is off to a terrific start, more people are buying Macs than ever
before, and we have amazing new products still to come this year.”
“We’re really pleased to have generated over $4bn of cash
during the quarter,” said Peter Oppenheimer, Apple’s CFO.
“Looking ahead to the fourth fiscal quarter of 2010, we expect
revenue of about $18bn and we expect diluted earnings per share of
about $3.44”
Apple is selling iPads and iPhones "as fast as we
can make them" and "working around the clock
to try to get supply and demand in balance," Tim
Cook, the company's operating chief, commented
on a conference call.
He said the company hadn't
seen any decline in iPhone 4 demand because of
antenna problems. "My phone is ringing off the
hook from people that want more supply," Cook
said. Maybe.
Research company iSuppli earlier raised its estimate for iPad sales in 2010
to 12.9m from 7.1m, saying the only limitation was production capacity, not
demand. Apple said the iPad would be available in nine more markets, including
Hong Kong, Ireland and Mexico from Tuesday.
Apple shares rose 2.5 per cent in after-hours trading. The stock closed Tuesday at
$251.89 on the Nasdaq Stock Market.
Apple's market capitalization was $229.2bn on Tuesday compared with
Microsoft's $223.3bn.
SEE: Finfacts article, May 27, 2010:
Apple overtakes Microsoft as the world's most valuable technology company;
In 1997, shortly after Jobs
returned to Apple, which he had co-founded in 1976, Dell's founder and chairman,
Michael Dell, was asked at a technology conference what might be done to fix
Apple, then encountering serious financial troubles.
"What would I do?" Dell
said to an audience of several thousand information technology managers. "I'd
shut it down and give the money back to the shareholders."
