Apple reports $24.67 billion in revenue, $5.99 billion profit for second quarter

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Date: Wednesday, April 20th, 2011, 15:05
Category: Finance, News

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As irked as you may be with Apple from time to time, there’s no doubting this: the company makes a profit and is around for the long haul.

Per Macworld, Apple announced the results of its second fiscal quarter, citing sales of US$24.67 billion and a net profit of US$5.99 billion, according to figures announced by the company Wednesday.

The company’s quarterly revenue, a record figure for the second quarter, beat year-ago sales by 83%. Profits also set a record for the quarter, and improved 95% over the US$3.07 billion in profit the company tallied in the 2010 second quarter.

Apple earned US$6.40 per share, beating last year’s second-quarter earnings of US$3.33 per share by 92%. Apple’s performance also blew away analyst estimates. Analysts were looking for the company to report US$23.34 billion in revenue and earnings of US$5.36 per share for the quarter.

During the conference call, Apple stated that it had sold 18.65 million iPhones during the quarter, which ended March 26. This figure represents an increase of 113% from the 8.75 million phones Apple sold over the same period last year. The company recorded recognized revenue of US$12.3 billion in the just-completed quarter, an increase of 126%.

All told, Apple ended its fiscal second quarter with the iPhone available in 90 countries through 186 carriers, compared to 185 carriers in 90 countries at the end of the first quarter; Apple Chief Financial Office Peter Oppenheimer noted that there had been some carrier contraction during the last three months that offset the addition of new partners such as Verizon in the U.S., SK Telecom in South Korea, and Saudi Telecom in Saudi Arabia.

Apple sold 3.76 million Macs during the second quarter, an increase of 28% over the 2.9 million Macs sold during the year-ago period. That set a record for Mac sales during the March quarter, Oppenheimer said. In particular, Mac sales compared favorably with the overall PC market, which contracted at a rate of 3% during the quarter, according to figures from IDC. That marks the twentieth consecutive quarter that Apple has outgrown the PC market, although sales numbers were below those posted by Apple for the last two quarters.

Notebooks continue to be the big driver for Mac sales, with the 2.7 million portables making up 73% of the Macs sold during the quarter. In addition to the February revamp of the MacBook Pro line, Apple also reaped the benefits of last year’s MacBook Air updates. The 1 million desktops sold were only more than during one of the last five quarters.

Apple also made notable gains internationally with Macs, seeing 76% growth in the Asia Pacific region on a year-over-year basis.

The iPad 2 shipped at the end of the quarter, on March 11 in the U.S. and on March 25 in 25 additional countries, which helped spur sales of Apple’s tablet. All told, Apple sold 4.69 million iPads during the quarter, though it didn’t break down those sales between the iPad 2 and the original model. In total, Apple has sold 19.48 million iPads since the product was released in April 2010.

Unfortunately, iPod sales continued their decline, though Apple says that the product line’s performance was ahead of expectations. The company sold 9.02 million iPods during the quarter, a drop of 17% from last year’s second-quarter figures. More than half of the iPods sold during the quarter were the iPod touch, according to Apple’s figures.

Despite that decline, Oppenheimer said that the total iPod sales were ahead of Apple’s expectation, and that the iPod remains the top-selling MP3 player in most of the countries where that data is tracked, and continues to hold onto its market-leading position in the U.S.

Apple found a silver lining in the performance of its iTunes online business, however. That segment tallied US$1.1 billion in revenues, its best quarter ever, according to Oppenheimer.

With Apple’s brick-and-mortar retail outlets approaching their 10th anniversary next month, Oppenheimer noted that the retail chains should see their 1 billionth visitor in a matter of days. During the second quarter, 71.1 million people visited the app store, up from 47 million visitors in the 2010 second quarter.

Revenue from the retail stores grew 90% to US$3.19 billion. Apple says it sold 797,000 Macs through its retail outlets, an increase of 32% from last year. About half of the Macs sold at the Apple Store were to newly minted Mac users.

Apple still plans to open 40 new stores during the 2011 fiscal year, with two-thirds of those outlets opening outside of the U.S. That includes a fifth Apple Store in China.

For the third quarter ending in June, Apple expects revenue of about US$23 billion and earnings per share of US$5.03. That compares to US$15.7 billion in revenue and earnings of US$3.51 a share for the third quarter of 2010. Prior to Wednesday’s call, analysts were looking for sales of US$23.8 billion and earnings of US$5.25 per share for the June quarter.

Apple receives RFID tag reader patent, iPhone 5 possibilities seen on horizon

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Date: Wednesday, April 20th, 2011, 07:25
Category: iPhone, Patents

If it’s not the rumors that keep things interesting, it’s the patents for stuff that might be coming down the line…

Per AppleInsider, a patent recently granted to Apple detailing a method of incorporating a Radio Frequency Identification tag reader into the screen of a portable touchscreen device in order to save space has furthered speculation that Apple plans to add RFID features to the iPhone.

The patent, entitled “Touch Screen RFID Tag Reader,” describes “the efficient incorporation of RFID circuitry within touch sensor panel circuitry. The U.S. Patent and Trademark Office published the filing on Tuesday.

RFID allows devices to sense embedded chips in nearby objects without the requirement of contact or a visible line of sight.

In the filing, Apple documents a process by which the touch sensor panel of a device can be modified to double as an “RFID transponder,” thereby eliminating the need for a “space-consuming RFID antenna.”

According to the invention, loops for the antenna of the RFID circuit can be formed from “metal on the same layer as metal traces form in the borders of a substrate” without requiring a separate metal layer.

Apple’s method for employing RFID tag reader technology within a touchscreen joins a growing collection of RFID patent applications, which include the invention of a mobile “ID App” for reading RFID tags and a method of using RFID to sense and connect to WiFi networks.

The proposed “ID App” would utilize an RFID reader, camera and an IR image capture device to identify objects, such as a painting in a museum, and search a set of databases to gather more information.

Last August, rumors emerged that Apple was planning to bring near field communications technology, such as RFID, to the next-generation iPhone. Further evidence of Apple’s alleged plans for an RFID-capable iPhone came in October of last year when reports suggested that an Apple partnership with chip manufacturer Gemalto could pave the way for contactless transactions on the iPhone via RFID.

In January, Apple web site visitors discovered a job listing for an iPhone hardware engineer with RFID experience. It has been suggested that Apple will implement an e-wallet feature to take advantage of the rumored NFC-capabilities in future iOS devices.

Analyst Brian White with Ticonderoga Securities claimed in February that the next iPhone will utilize NFC for a ‘unique’ twist that would go beyond just e-wallet functionality. After a suprising contrary report suggested that NFC would not make it into the next iPhone, Forbes reported in March that, according to a trustworthy source in the NFC market, the iPhone 5 will indeed have NFC contactless capabilities.

Michael Nathaniel Rosenblatt and Steve Porter Hotelling are listed as inventors of the patent.

Rumor: iPhone 5 to hit in September, sport faster processor

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Date: Wednesday, April 20th, 2011, 04:52
Category: iPhone, Rumor

It’s the rumor mill that keeps things interesting. Per Reuters, Apple will begin shipping the iPhone 5, complete with a faster processor, in September.

This September shipping date rumor contradicts earlier ones that the iPhone 5 wouldn’t begin production until September with an October or later ship date. Current industry speculation states that with Apple apparently focusing WWDC solely on software this year, it makes sense that the company would hold off introducing an iPhone 5 until September when iOS 5 will likely launch. Other opinions have stated that the delay allows for better product line syncing between the iPhone, iPad and iPod touch.

As always, stay tuned for additional details as they become available and you’ll know as soon as we do.