Apple Posts US$1.67 Profit for Q4 2009

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Date: Tuesday, October 20th, 2009, 04:57
Category: Finance, News

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In spite of a sagging global economy, Apple posted the results to its most profitable quarter ever, the company setting records for both Mac and iPhone sales. According to Macworld, the company reported a net profit of US$1.67 billion, or US$1.82 per share, on revenue of US$9.87 billion for its fourth quarter earnings.

Comparing those numbers to Apple’s year-ago figures, quarterly profits rose 46%, while earnings per share jumped 44%. Revenue increased 25% from the September 2008 quarter. At the end of the corner, the company had US$34 billion of cash on hand.

For the full 2009 fiscal year, Apple’s revenue rose 12% while its income increased 18% from 2008, according to chief financial officer Peter Oppenheimer. Those increases come during what the Apple executive called “extraordinary challenging times” which have done little to slow the company’s growth.

“We are thrilled to have sold more Macs and iPhones than in any previous quarter,” said Apple CEO Steve Jobs in a statement accompanying the earnings announcement. “We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.”

For the December quarter, Apple told analysts to expect between US$11.3 and US$11.6 billion in sales and earnings ranging from US$1.70 to US$1.78 per share. This guidance was given without accounting for a rule change in the way Apple recognizes revenue from the iPhone and Apple TV. Apple was uncertain when it would adopt the new accounting method, which was OK’d by the Financial Accounting Standards Board last month.

Over the course of the quarter, Apple sold 3.05 million Macs during the quarter (a 17 percent increase over what it sold for the same three-month period in 2008). That 3.05 million figure sets a record for Mac sales, topping the previous high-water mark of 2.61 million Macs sold during the fiscal fourth-quarter of 2008.

During the quarter, Apple sold nearly 2.3 million notebooks, with portables accounting for an astounding 74% of the Macs sold during the last three months.

“Last quarter was the quarter of the portable,” chief operating officer Tim Cook said during a Monday conference call to discuss Apple’s earnings. In response to one analyst’s comment that “the [laptop] price cut worked,” Cook responded loudly, “Yes, it did!”

Cook also said that Snow Leopard sales were stronger than Apple expected, with twice as many sales of Snow Leopard upgrades during the operating system’s first five weeks on sale than Leopard made during its first five weeks.

iPhone sales rose 7% from the year-ago quarter to nearly 7.4 million units. That compares to a little less than 6.9 million iPhones in the September 2008 quarter—a three-month period that saw Apple roll out the iPhone 3G in a number of markets around the globe.

For the quarter, Apple reported recognized revenue from iPhone handset sales of $2.3 billion, a 185% jump from US$806 million in last year’s fourth quarter.

If Apple had any disappointments in the quarter, it would be in its iPod business, where sales of the handheld music players fell 8% from the year-ago quarter to 10.2 million units. It was the second consecutive quarter where Apple saw iPod sales drop from the year-ago period.

However, Apple saw signs for optimism in its iPod numbers. According to the company, 50% of recent iPod buyers were purchasing their first iPod. What’s more, sales of the iPod touch doubled when compared to the same quarter a year ago, and Apple believes it can attract even more customers to the widescreen music player after cutting the price of the 8GB iPod touch to $199 last month.

“We believe the iPod lineup is attractive positioned for the holiday buying season,” Oppenheimer told analysts during Monday’s conference call. And that’s critical for Apple, which traditionally sees its highest iPod sales during the December quarter. In the December 2008 quarter, for example, Apple sold 22.7 million music players.