Apple Announces Q2 Financial Results, Reports US$1.21 Billion Profit

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Date: Thursday, April 23rd, 2009, 07:19
Category: Finance

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Amidst strong iPhone and iPod sales, Apple Inc. reported a US$1.21 billion profit for its second quarter despite Mac sales being down 3% for the quarter compared to last year.
“We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history,” Peter Oppenheimer, Apple’s CFO said during the conference call announcing the results.
According to Macworld, Apple posted a total revenue of US$8.16 billion, its best non-holiday quarter to date. The quarter’s revenue and profit was higher than the $7.51 billion revenue and $1.05 billion profit posted during the same quarter last year.
During the quarter, Apple sold 2,216,000 Macs with notebook sales comprising 63% of this at 1,398,000 units and desktop Macs accounting for the remaining 818,000 units.
When asked about Apple’s plans for releasing a netbook, Apple executive Tim Cook said, “If we find a way that we can deliver an innovative product that really makes a contribution, then we will do that–we have some interesting ideas in this space.” Cook said that netbooks currently have cramped keyboards, terrible software, junky hardware, and very small screens, “not something that we would put the Mac brand on, quite frankly.” He added that people who want a small computer that does browsing and e-mail might want to buy an iPod touch or an iPhone.
iPod sales reached 11,013,000, a 3% gain over the same quarter last year. Apple said its U.S. market share for digital music players is more than 70%, based on data from market-reseach firm NPD. The iPod also grew in worldwide markets, with healthy unit sales growth in the U.K., France, Germany, Japan, Australia, and China.
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applelogo1.jpg
Amidst strong iPhone and iPod sales, Apple Inc. reported a US$1.21 billion profit for its second quarter despite Mac sales being down 3% for the quarter compared to last year.
“We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history,” Peter Oppenheimer, Apple’s CFO said during the conference call announcing the results.
According to Macworld, Apple posted a total revenue of US$8.16 billion, its best non-holiday quarter to date. The quarter’s revenue and profit was higher than the $7.51 billion revenue and $1.05 billion profit posted during the same quarter last year.
During the quarter, Apple sold 2,216,000 Macs with notebook sales comprising 63% of this at 1,398,000 units and desktop Macs accounting for the remaining 818,000 units.
When asked about Apple’s plans for releasing a netbook, Apple executive Tim Cook said, “If we find a way that we can deliver an innovative product that really makes a contribution, then we will do that–we have some interesting ideas in this space.” Cook said that netbooks currently have cramped keyboards, terrible software, junky hardware, and very small screens, “not something that we would put the Mac brand on, quite frankly.” He added that people who want a small computer that does browsing and e-mail might want to buy an iPod touch or an iPhone.
iPod sales reached 11,013,000, a 3% gain over the same quarter last year. Apple said its U.S. market share for digital music players is more than 70%, based on data from market-reseach firm NPD. The iPod also grew in worldwide markets, with healthy unit sales growth in the U.K., France, Germany, Japan, Australia, and China.
iPhone sales were 793,000 for the quarter, up 123% over the same quarter last year with the company having sold more than 21 million total iPhones with the handset selling selling in 81 countries. Cook said that Apple views AT&T as very good partner, and as the best wireless provider in U.S. “We’re very happy with the relationship and do not have a plan to change it,” Cook said. When asked about getting the iPhone into China, Cook said that Apple would like to start selling there within the next year and are working on doing so.
The company also stated that the iTunes Store had good quarter, helped but changes including DRM-free music. The App Store now offers more than 35,000 applications, compared to 15,000 available three months ago–and Apple said it was “within hours” of reaching the one billion app download mark.
Apple said that international sales accounted for 46 percent of the quarter’s revenue.
Apple retail stores reported US$1.47 billion in revenue, compared to US$1.45 billion in the year-ago quarter. The locations sold 438,000 Macs, about half of them to users who are new to the Mac platform. Apple only opened one new store in the quarter, bringing the total to 252 stores. Retail customers increased from 33.7 million in the year-ago quarter to 39 million, an increase of 15% and Apple remains on track to open about 25 stores in the 2009 fiscal year, half of them outside the U.S
Oppenheimer said the company’s financials are “very robust, with almost US$29 billion in cash and marketable securities on our balance sheet.” For the third quarter, Apple expects revenue of $7.7 billion to $7.9 billion with earnings per share at $.95 to $1.00.

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