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kdboyce
Apple continues to exceed analysts' expectations, which is a good thing. It can ...
Mark Wehrmeister
Great results for Apple. Hopefully the iPhone 4 antenna problems will not put a ...
Apple fiscal Q3 profits soar on ‘record’ Mac sales
Bolaji Ojo
7/20/2010 5:13 PM EDT
PHILADELPHIA—Apple Inc. easily beat analysts’ revenue and profit estimates in the second quarter, posting stronger-than-expected financial results on the back of record sales of Macintosh computers and surging demand for iPhones.
The company reported net profit of $3.25 billion, or $3.51 per share, in the three months ended June 26, up 78 percent from $1.83 billion, or $2.01 per share, in the year-ago quarter. Revenue increased 61 percent, to $15.7 billion from $9.7 billion.
Apple had been expected to handily exceed analysts’ consensus revenue and profit estimates having easily beat previous forecasts but it even thrashed the highest estimate from some financial experts who thought the company was raking in huge sales of its products. Analysts had on the average estimated Apple’s profits would be approximately $3.11 per share and revenue of $14.8 billion.
“It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” Steve Jobs, Apple’s CEO, said in a statement. The “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.”
Apple sold 3.47 million Macintosh computers during the year, a record number for the company, and representing a 33 percent jump from the fiscal 2009 comparable quarter. The company reported sales of 9.41 million iPods during the just-ended quarter, down 8 percent from the year-ago quarter while it sold 3.3 million iPads, the new tablet computer released during the quarter.
The only weak spot in Apple’s fiscal third quarter financial performance was in its gross profit margin, which fell to 39 percent from 41 percent in the year-ago quarter.
The company reported net profit of $3.25 billion, or $3.51 per share, in the three months ended June 26, up 78 percent from $1.83 billion, or $2.01 per share, in the year-ago quarter. Revenue increased 61 percent, to $15.7 billion from $9.7 billion.
Apple had been expected to handily exceed analysts’ consensus revenue and profit estimates having easily beat previous forecasts but it even thrashed the highest estimate from some financial experts who thought the company was raking in huge sales of its products. Analysts had on the average estimated Apple’s profits would be approximately $3.11 per share and revenue of $14.8 billion.
“It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” Steve Jobs, Apple’s CEO, said in a statement. The “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.”
Apple sold 3.47 million Macintosh computers during the year, a record number for the company, and representing a 33 percent jump from the fiscal 2009 comparable quarter. The company reported sales of 9.41 million iPods during the just-ended quarter, down 8 percent from the year-ago quarter while it sold 3.3 million iPads, the new tablet computer released during the quarter.
The only weak spot in Apple’s fiscal third quarter financial performance was in its gross profit margin, which fell to 39 percent from 41 percent in the year-ago quarter.
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Mark Wehrmeister
7/21/2010 2:11 AM EDT
Great results for Apple. Hopefully the iPhone 4 antenna problems will not put a damper next quarter's earnings. Does anyone think those problems will have a material impact on Apple's performance in the future or will this blow over?
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kdboyce
7/21/2010 2:11 AM EDT
Apple continues to exceed analysts' expectations, which is a good thing. It can bring into question how good are the analysts as well as how much should investors believe analysts vis a vis their investing decisions. Still, analysts will spend more time at their job than almost any investor.
I wonder if the record number of Mac computers sold were driven in part by the presence of the iPad. I would really like to see the customer characteristics breakdown between the two. Just as there is a strong similarity in operation of the iPad and iPhone, including apps, is it too much to speculate some spillover into new generations of the Mac?
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