Apple posts $7.31 billion profit for third quarter

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Date: Tuesday, July 19th, 2011, 13:44
Category: Finance, News

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A combination of record iPhone and iPad sales combined with continued growth of its Mac business pushed Apple to reported sales of US$28.57 billion and net profit of US$7.31 billion for the three-month period ended June 25, 2011.

Per Macworld, the sales and profit figures—both quarterly records—increased last year’s third-quarter performance by 82 percent and 125 percent, respectively. Apple reported earnings of US$7.79 per share, which beat analyst estimates of $5.85. Analysts had also been looking for Apple to reach US$24.92 billion in sales for the quarter—a figure the company topped by nearly US$4 billion.

“We are extremely pleased with the momentum of our business,” chief financial officer Peter Oppenheimer told analysts during a conference call to discuss the earnings report on Tuesday. Oppenheimer noted that during its 2011 fiscal year, Apple has recorded US$35 billion in year-over-year revenue growth and US$9.5 billion in year-over-year earnings growth—increases of 78 percent and 99 percent, respectively.

Apple says it sold 20.34 million iPhones during the just-completed quarter, a 142 percent increase from the phones it sold during the same period last year. That’s also the most phones Apple has ever sold during a quarter, topping the 18.65 million mark set just three months ago.

The iPhone racked up strong sales despite Apple skipping its customary summer introduction of a new model, after releasing the iPhone 4 in the summer of 2010 and the iPhone 3GS the summer before that. The last new iPhone released by Apple was a CDMA version of the smartphone compatible with Verizon’s wireless network; that model came out in February. The long-awaited white version of the iPhone also shipped in April.

Apple sold 9.25 million iPads during the third quarter, the first full quarter of sales for the iPad 2, which arrived in March. Apple says its iPad sales topped last year’s figures by 183 percent. It also set a new record for quarterly iPad sales, besting the previous mark of 7.3 million during the 2010 holiday shopping season.

Mac sales rose 14 percent from last year, with Apple selling 3.95 million computers. That’s a record for the third quarter, Oppenheimer said. Growth of Mac sales also outpaced market-research firm IDC’s forecasted PC market growth by more than four times, Apple pointed out.

The quarter saw Apple introduce new iMacs with quad-core processors, improved graphics, and Thunderbolt connectivity. All told, Apple sold 1.15 million desktops, accounting for about 30 percent of the Macs sold during the quater. The company sold 2.79 million portable Macs during the quarter, with the MacBook Pro and MacBook Air driving those sales, according to Oppenheimer.

iPod sales continued to decline from the heights of previous years. Apple says it sold 7.54 million iPods, a 20 percent drop from last year, though Oppenheimer said that was above the company’s expectations. The iPod touch accounts for about half of all iPods sold, according to Apple’s figures.

Stay tuned for additional details as they become available.

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