BlackBerry posts $98 million quarterly profit, sells 1 million Z10 smartphones

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Date: Thursday, March 28th, 2013, 06:36
Category: Finance, News

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Maybe there’s some life left in the old girl…

Per AppleInsider, BlackBerry on Thursday said demand for its new flagship Z10 handset helped produce a net income of US$98 million — a minor surprise during a transitional quarter for the previously spiraling company.

While the Canadian smartphone maker, formerly known as Research in Motion, surprised by posting a profit, its quarterly revenue of US$2.7 billion was still seen as a disappointment. In addition, the company only sold 6 million total smartphones, while a million of those were its new Z10.

A poll of Wall Street analysts by Thomson Reuters had forecast BlackBerry to post a loss of about 29 cents per share. In the same quarter a year ago, the company had lost US$118 million.

Still, the Z10 sales were a relatively positive sign for the company’s revamped BlackBerry 10 platform. That device launched a few weeks before the end of the quarter, and only in Canada, the U.K. and United Arab Emirates. It began expanding to the U.S. last week.

While BlackBerry was once a dominant player in the smartphone market, major shifts in recent years have made it a fringe competitor. For example, Apple sold nearly eight times as many iPhones last quarter as BlackBerry sold smartphones in its latest print, demonstrating the gap between the two companies.

As of the end of the company’s fourth fiscal quarter of 2013, which concluded on March 2, BlackBerry had about US$2.9 billion in cash, cash equivalents, short-term and long-term investments.

Stay tuned for additional details as they become available.

Apple posts $54.5 billion in revenue, $13.1 billion profit for Q1 2013 financial returns

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Date: Wednesday, January 23rd, 2013, 21:21
Category: Apple TV, Finance, iPad, iPhone, iPod, News, retail

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It was a profitable quarter, but there were setbacks compared to last year.

Per Macworld, for the company’s first fiscal quarter of 2013, Apple posted revenue of US$54.5 billion and a net profit of US$13.1 billion. Revenue rose 17.7 percent from the 2012 first quarter, while profit was flat year-over-year. Apple earned US$13.81 per share, down half-a-percentage point from the US$13.87 it earned in the year-ago quarter.

Apple’s quarterly performance was in line with Wall Street expectations. Analysts were looking for sales of around US$54.7 billion for the quarter and earnings per share of US$13.42.

iPhone sales hit a record for the quarter ended Dec. 29, 2012, up 29 percent year over year to 47.8 million phones. That was within the 46 to 47 million range analysts were looking for. Apple says it sold 3.7 million phones a week during the quarter, compared to weekly sales of 2.6 million during the 2012 quarter.

iPhone sales growth was strong in all sales regions, Oppenheimer said, but particularly in Greater China, which includes China, Taiwan, and Hong Kong. Sales doubled year over year in that region.

Oppenheimer credited the “tremendous popularity” of iPhone 5 for driving Apple’s phone business—a not so subtle slap at rumors of sluggish iPhone 5 sales. Breaking with Apple’s typical practice of not addressing rumors, Cook did dismiss reports of iPhone order cuts.

iPad sales also set a new high-water mark, with 22.9 million tablets sold, compared to 15.4 million last year. That translates to more than 1.7 million iPads sold per week, a 60 percent increase from the year-ago quarter, according to Oppenheimer.

As is its custom, Apple didn’t break out sales figures between iPad models—it currently offers the iPad 2, a fourth-generation model of its full-sized iPad, and the iPad mini. Oppenheimer called the smaller version of Apple’s tablet a “tremendous hit.”

For the quarter, Apple sold more than 75 million iOS devices.

The company sold 12.7 million iPods, down about 21 percent compared to the year before. The iPod touch was (as always) popular during the holidays, and still accounts for more than half of all iPods sold. The company claims that the iPod owns more then 70 percent of the market for MP3 players.

iTunes generated US$2.1 billion in revenue, and the company established new all-time quarterly sales records for music, movies, and apps. The company added music stores in 56 countries, for a total of 119 around the world. The App Store sold 2 billion downloads in December; cumulative downloads have surpassed 40 billion, generating US$7 billion in payments to developers.

Apple made brief mention of its Apple TV offering, noting that it sold more than 2 million settop boxes during the holiday season quarter. That’s a 60 percent increase from the prior year.

Revenue from Apple’s retail effort was US$6.4 billion—an all-time high and a 5 percent increase over the 2012 first quarter. The company says that revenue is largely due to iPad and iPhone sales.

Apple opened 11 new stores, including four in its Greater China region. It expects to invest a bit less than US$1 billion in its retail stores this fiscal year.

Apple once again noted that the cumulative downloads have now surpassed 40 billion for the App Store, generating US$7 billion for developers. There were 2 billion downloads in the month of December alone.

Unusually, Apple did not break out the percentage of customers who purchased Macs at Apple Stores who were new to the platform. (In the past, that company has hovered consistently around 50 percent.) That omission could be a byproduct of the dip in Mac sales during the quarter.

For the second quarter ending in March, Apple expects sales to come in between US$41 and US$43 billion. That number would be slightly ahead of the US$39.2 billion in revenue the company logged in the 2012 second quarter. Apple is no longer giving analysts a forecast on earnings per share for the quarter, instead providing its expectations for gross margin and operating expenses in addition to revenue. (Apple expects gross margin to be between 37.5 and 38.5 percent for the upcoming quarter while operating expenses will come in at US$3.8 and US$3.9 billion.)

Apple Q1 2013 results to be released later today

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Date: Wednesday, January 23rd, 2013, 08:06
Category: Announcement, Finance, News

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Ladies and gentlemen, Apple will be holding a conference call to announce its earnings for the first quarter of 2013 at 2 PM PST/5 PM EST. Stay tuned to the PowerPage for details as they become available and additional information can be found over at investor.apple.com.

Apple to hold Q1 2013 earnings conference call on Wednesday, January 23rd

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Date: Thursday, January 3rd, 2013, 07:39
Category: Finance, News

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It’s nice to get the numbers back and see how you’re doing.

Per AppleInsider, Apple announced on Wednesday that it will reveal results for the first fiscal quarter of 2013 on Jan. 23, which will be followed by an earnings conference call expected to cover initial statistics for the holiday season as well as performance numbers for the iPad mini.

The announcement was posted to Apple’s Investor Relations web site and noted the conference call will start on Wednesday, Jan. 23 at 2:00 p.m. Pacific/5:00 p.m. Eastern. A live audio stream of the call will be available at this link.

In the fourth quarter of 2012, Apple saw a 25 percent boost in profits thanks to strong sales of 44 million iDevices, including 26.9 million iPhones, for the three month period. Revenue for fiscal 2012 reached over US$156 billion on sales of more than 200 million iOS devices, 18 million Macs, and 35 million iPods.

For the upcoming report, Apple forecast revenue of US$52 billion and diluted earnings per share of about US$11.75 for the quarter ending in December. The multitude of new product launches and product line refreshes, like the iPad mini, iPhone 5 and newly redesigned iMac line, are expected to drive down gross margins that could equate to a decline of 400 basis points for the three month period.

Stay tuned to the PowerPage for up to the minute coverage on the earnings come the 23rd.

Apple purchases Color Labs’ talent base for indeterminate price

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Date: Friday, October 19th, 2012, 08:05
Category: Finance, News, Software

Your favorite computer company bought up the talent, not the office supplies (including the trusty coffee maker)

Per All Things D, Apple didn’t buy social video startup Color, but it did acquire its engineering team of about 20 employees for as much as $5 million.

Disputing a rumor that surfaced on Wednesday claiming that Apple had bought Color, Liz Gannes of All Things D revealed on Thursday that Apple instead “acquired” Color’s engineering team. The employees were said to have been picked up for somewhere between US$2 million and US$5 million.

That would mean that earlier claims that Apple had bought Color for “double-digit millions” were incorrect. Instead, Apple made a relatively small talent acquisition of about 20 personnel.

“Apple is not buying Color’s technology, intellectual property, domain names or liabilities,” Gannes said. “Those are being left with the company, which still has considerable cash in the bank — something like US$25 million — and is going to be wound down.”

A flurry of rumors and misinformation related to Color were attributed to “bad blood” that has apparently formed between Color employees, company CEO Bill Nguyen, ex-employees, investors, and even Apple itself.

Founded by Bill Nguyen and Peter Pham in 2011, Color Labs was at the center of some controversy after netting US$41 million in a pre-launch funding round, a massive investment compared to the usual US$1 million in seed money seen by most comparable start-ups. The company released a photo-sharing app, though the initiative failed to draw users, prompting Pham to exit three months after launch and Chief Product Officer DJ Patil to do the same one month later.

Nguyen changed strategies and created a new video-sharing app that allows users to record and post 30-second silent video to Facebook, a direction that netted Color a deal with Verizon in May.

Stay tuned for additional details as they become available.

Analyst predicts Apple to phase out iPad 2 to make room for “iPad mini”

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Date: Friday, October 19th, 2012, 07:13
Category: Finance, iPad, News

The iPad 2 could be going the way of the dodo.

Per AppleInsider, analyst Rob Cihra with Evercore Partners said in a note to investors this week that he sees Apple phasing out the current iPad 2, because Apple’s overall vision calls for “clearer product tiers.” The prediction comes as Apple is expected to lower the barrier to entry of its iPad lineup by unveiling a new, smaller iPad next Tuesday.

Cihra believes Apple will sell around 7 million so-called “iPad mini” units in the December quarter. Along with the full-size iPad, he sees Apple selling a total of 26 million units in the holiday shopping season.

In his view, Apple is leveraging its engineering expertise in both hardware and software to “pull dollars away from otherwise commodity markets and incumbent competitors.” Apple’s calendar year 2012 revenues are up 30 percent year over year, while the broader PC market has dropped 4 percent this year.

Further bolstered by sales of 49 million iPhones, Apple is expected by Cihra to post US$56.1 billion in revenue during the December quarter, amounting to US$16.33 in earnings per share.

Prior to that anticipated blockbuster quarter, Apple will report results for its just-concluded September quarter. For that three-month frame, Cihra believes Apple sold 27 million iPhones, 17 million iPads, 4.9 million Macs and 5.7 million iPods, resulting in revenue of US$36.5 billion and earnings per share of US$9.03.

His numbers are slightly above Wall Street consensus for the September quarter, as other analysts on average seek US$36.4 billion in revenue and US$8.93 earnings per share.

Evercore Partners has reiterated its overweight rating for AAPL stock, as well as a target price of US$800.

Stay tuned for additional details as they become available.

Apple posts $8.8 billion profit, $35 billion in sales for Q3 2012 returns

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Date: Wednesday, July 25th, 2012, 06:30
Category: Finance, News

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There’s a nice ring to the words “US$8.8 billion quarterly profit”…

Per Macworld, Apple announced its returns for the third quarter of 2012 yesterday, the company’s sales hitting US$35 billion, up 22 percent from US$28.6 billion last year while profits rose 20.5 percent to US$8.8 billion from US$7.3 billion. Earnings for the quarter were US$9.32 a share, up 20 percent from last year. Reported earnings topped Apple’s forecast, but fell short of Wall Street expectations of US$10.35 per share on projected revenue of US$37 billion.

Apple sold 17 million iPads during the quarter, the most the company has ever sold during a quarter. The company tallied June quarter records for both Mac and iPhone sales—the latter figure coming even as customers have held off on purchasing a new iPhone in anticipation of a new model coming out later this year.

Despite the sales records, the third quarter saw the slowest growth rate for profit since 2009. Still, Apple finds itself better positioned than most tech companies. Sales of Macs, for example, rose during the quarter while the rest of the PC market saw a 1 percent decline, according to figures from market-research firm IDC.

Peter Oppenheimer, Apple’s chief financial officer, told analysts during a conference call that the company was “pleased” with its quarterly results.

The number that probably pleased Apple the most came from its surging iPad business, where Apple saw sales of its tablet grow 84 percent from the year-ago quarter. This was the first full quarter of sales for Apple’s third-generation iPad, which debuted on March 16. Apple is currently selling iPads in 97 countries.

Recognized revenue from the iPad lineup hit US$9.2 billion for the quarter, up 53 percent from the US$6 billion in revenue Apple recorded last year. Apple says it sold twice as many iPad as Macs to its education customers—and Apple just happened to set a record for Mac sales to U.S. educational institutions for the quarter.

As for its Mac business, Apple sold 4 million computers, up slightly from the 3.9 million Macs it sold in the year-ago quarter. Even with slight 2 percent gain, Apple still sold more Macs in this three-month period than in any June quarter before.

Those sales were largely driven by the revamped MacBook Air and MacBook Pro models Apple released, even though those notebooks came out less than three weeks before the end of the June quarter. According to Cook, prior to the release of those models at June’s Worldwide Developer Conference, Apple’s Mac sales were off last year’s pace. Once the updated MacBooks hit the market, though, Apple’s weekly sell-through increased, allowing it to beat last year’s figure and outpace PC industry growth for a 25th straight quarter.

In particular, Cook noted that the MacBook Pro with Retina Display has been “incredibly well-received. We still have not caught up with demand, but we anticipate doing so next month.”

Mac sales are usually dominated by portables, and this quarter was no exception. Notebooks accounted for three-fourths of the Macs Apple sold.

In addition to the June record for overall Mac sales, Apple executives noted that the quarter was the best ever for Mac sales to U.S. education institutions.

Apple sold 26 million iPhones during the quarter, compared to 20.3 million last year—another June quarter record for the company. The 28 percent growth in iPhone sales was also ahead of the amount Apple factored into its quarter guidance, Oppenheimer noted.

While Apple hasn’t made any iPhone hardware changes since it rolled out the iPhone 4S last year, it has been expanding the reach of its smartphone. During the June quarter, for example, the company added a number of regional carriers in the U.S. More than 250 carriers now provide service for the iPhone in 100 countries.

Recognized revenue from the iPhone rose 23 percent from last year to US$16.2 billion.

Despite the record sales, this quarter’s iPhone figures represent something of a blip for Apple. Both unit sales and iPhone revenue were down sequential in the third quarter; in 2011, unit sales and revenue rose from the second quarter to the third quarter. That’s largely a sign that customers may be holding off on iPhone purchases in anticipation of a new smartphone from Apple.

Pressed by analysts about the impact iPhone rumors might have on Apple’s bottom line, Cook said that while the company goes to great lengths to keep its product road map under wraps, he doesn’t put any value in clamping down on speculation about product releases.

“That’s just the environment we’re in,” Cook said. “I’m glad that people want the next thing. I’m super happy about it.”

Apple may have less reason to happy with its iPod sales, which saw another dip. The company sold 6.8 million music players, down from 7.5 million iPods in the year-ago quarter. Average selling price for iPods was also down for the quarter. Still, Apple notes that the iPod continues to hold a 70 percent share of the music-player market.

Combining iPod touch numbers with iPhone and iPad figures, Apple says that cumulative iOS device sales have reached 410 million units.

Revenue from the iTunes Store topped US$1.8 billion for the quarter; Apple brought its online music, movie, TV, and app store to 12 more countries.

Cook said that Apple sold 1.3 million Apple TVs during the quarter, bringing total sales for the fiscal year to 4 million units. The set-top box is “still at a level that we would call it a hobby, but we’ll continue to pull the string to see where it takes us,” Cook added.

During Tuesday’s briefing, Apple also unveiled the details of the stock dividend plan it first announced in March. The company will pay out US$2.65 per share on August 16, 2012 to shareholders of record as of the close of business on August 13. Subsequent dividends will be announced at the same time as the company’s results, with future payouts subject to declaration by the board of directors. Apple will begin buying back stock starting in its 2013 fiscal year, which starts September 30, 2012.

Both the dividend and the stock buyback program are part of Apple’s efforts to dispense with the massive amounts of cash the company has on hand. Apple ended the June quarter with US$117.2 billion in cash and short- and long-term securities, up from US$110 billion the previous quarter.

In terms of future performance, Oppenheimer told analysts to expect revenue of US$34 billion during the company’s fiscal fourth quarter and earnings of US$7.65 a share. That compares to 2011 fourth-quarter revenues of US$28.27 billion and earnings per share of US$7.02.

Apple to hold Q3 earnings call on Tuesday, July 24

Posted by:
Date: Tuesday, July 3rd, 2012, 06:25
Category: Finance, News

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It never hurts to be able to turn a profit.

Per AppleInsider, Apple on Monday announced that it will report its financial earnings results for the third quarter 2012 on Tuesday, July 24 at 2:00 p.m. Pacific, 5:00 p.m. Eastern.

The company updated its investor relations page to reflect the scheduled earnings report and ensuing conference call which will be streamed live here.

Apple’s last earnings call brought another record-breaking quarter and was the company’s best second fiscal quarter ever, second only to results from the 2011 holiday period. Profits during the three-month last quarter were up 94 percent year-to-year on strong iPhone and iPad sales. Macs sales also reached record highs during the period ending in March.

With the WWDC unveiling of the MacBook Pro with Retina display and a refresh of the entire MacBook line as well as introductions of other products like the new AirPort Express Apple is set to see another strong performance that some analysts believe will add to what could be the highest annual net income of any publicly traded company in history. The record is contingent on whether the tech giant can stay above a perceived US$500 billion market capitalization “barrier,” a level at which large corporations traditionally begin to see a slowdown in growth.

AAPL stock stood at US$592.52 at the end of trading on Monday with a market cap of US$554.04 billion.

Stay tuned for additional details as they become available.

Apple posts $11.6 billion profit for Q2 2012, iOS devices drive strong earnings

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Date: Wednesday, April 25th, 2012, 05:48
Category: Finance, News

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It’s pretty clear at this point: Apple’s not in danger of going out of business.

Per Macworld, on Tuesday, Apple reported a net profit of US$11.6 billion on revenue of US$39.2 billion for the quarter ended March 31, 2012. Those are respective increases of 94 percent and 59 percent from the 2011 second quarter. Apple’s profit translates to earnings of US$12.30 per share, up from US$6.40 a share last year; analysts were looking for earnings of US$10.06 a share for the quarter.

All told, Apple tallied record March quarter sales for its iPad, iPhone, and Mac lineups. The company also saw record results for its retail stores during what chief financial officer Peter Oppenheimer called “the most amazing March quarter that Apple has ever had.”

It was a big quarter for Apple’s iPhone business as the company launched the third-generation tablet on March 16 and cut the entry level price to US$399 for the iPad 2. While those moves came late in the quarter, Apple sold 11.8 million tablets during the quarter, up from 151 percent in the year-ago period.

In terms of revenue, Apple recorded US$6.6 billion from iPad sales, up from US$2.8 billion in the year-ago quarter.

Following its March 16 launch in the U.S. and nine other countries, the third-generation iPad is now available in 40 countries around the world.

Apple executives also noted on Tuesday that the iPad is extending the company’s reach into new markets. According to Oppenheimer, Apple sold two iPads for every Mac bought by one of its K-12 education customers in the U.S.—and that was during a record March quarter for Mac sales. Oppenheimer also touted the iPad’s presence in the enterprise, specifically citing the U.S. Air Force’s deployment of “thousands” of iPads as technical flight bags.

“The iPad continues to open new doors to customers with whom Apple had no previous relationship,” Oppenheimer said.

iPhone numbers were also strong for Apple during the quarter. The company sold 35.1 million phones between January and March, an 88 percent jump from year-ago iPhone sales and a record for the March quarter. That outpaced the growth of the overall smartphone market, in which sales increased 42 percent year over year.

Revenue from the iPhone grew 85 percent from last year’s second quarter to US$22.69 billion.

In particular, Apple did brisk iPhone business in the Far East. Sales more than doubled in the Asia Pacific and Japan markets, according to Oppenheimer. In China, iPhone sales increased five times from last year, helped by the iPhone 4S’s release in that country in January and the addition of China Telecom as an iPhone carrier in March.

Apple ended the quarter with the iPhone 4S available in 100 countries with 230 carriers offering the smartphone.

Oppenheimer says iOS device sales—which include the iPod touch—totaled 50 million during the March quarter. Apple’s cumulative iOS device sales have grow to 365 million units.

The App Store now carries more than 600,000 apps, with a third of those specifically built for Apple’s iPad.

Mac sales also set a March quarter record. The company sold 4 million Macs, an increase of 7 percent from the year-ago quarter. The entire PC industry grew 2 percent during the March quarter, making it six full years that Apple’s Mac business has outpaced the demand for PCs overall.

Notebooks are still the driver for Apple’s Mac business. The 2.8 million portable Macs sold during the quarter represent 70 percent of Mac sales. Besides illustrating the importance of the MacBook Pro and MacBook Air to Apple’s fortunes, that figure could also indicate that Apple’s desktop lineup is getting long in the tooth. The iMac last saw an overhaul nearly a year ago while the Mac mini has remained unchanged since July 2011. The Mac Pro is approaching the second anniversary of its last update.

The Asia Pacific market saw the biggest jump in Mac unit sales, with a 29 percent rise from last year. Other global markets saw single-digit growth in Mac sales.

Apple’s Mac sales may be outpacing the industry growth rate, thanks in some part to the company’s brick-and-mortar retail efforts. Apple says it sold 826,000 Macs at its retail outlets in the second quarter—about 20 percent of all the Macs it sold during the three-month period. About half the Macs sold at Apple Stores were to customers new to the platform.

Speaking of Apple retail, Apple ended the quarter with 363 stores, after opening two new ones in Amsterdam and Houston. Retail revenue of US$4.4 billion for the quarter was up 38 percent from last year. It was the retail segment’s second-largest quarter of sales, behind only first quarter of 2012, which includes the holiday shopping season.

iPod sales continued their decline. Apple sold 7.7 million music players, a drop of 15 percent from the second quarter of 2011. iPod sales actually came in ahead of Apple’s expectations for the quarter, according to Oppenheimer, with Apple choosing to focus on the fact that the higher-priced iPod touch represents more than half of the iPods sold during the quarter. Even with its declining sales, the iPod remains the market leader among MP3 players, according to Apple’s figures.

The company was much more eager to talk about the growth of its iTunes Store, which also saw record revenue of US$1.9 billion during the quarter. That’s an increase of 35 percent from last year’s tally, with music, video, and app sales driving the growth.

Apple executives revealed a few other interesting details about the quarter during their briefing with analysts. The company ended the quarter with US$110 billion in cash—a situation that figures to change in July when Apple starts paying out a US$2.65 per share dividend to shareholders. Oppenheimer said the company would provide more information about that dividend program in July.

iCloud now has 125 million subscribers, after Apple launched the cloud-based service and MobileMe replacement last October. That subscriber base is up from 85 million at the end of the first quarter. It was only in February that Cook was telling investors that iCloud had topped the 100 million subscriber mark.

Apple continues to do a staggering amount of business in China. Cook told analysts the company recorded US$7.9 billion in sales from that country during the second quarter, three times the amount of revenue it took in during the year-ago period. The US$12.4 billion in revenue Apple has seen in China during the first six months of its 2012 fiscal year nearly matches its revenue from that country for all of 2011. Cook credited pent-up demand for the iPhone 4S and strong iPad 2 demand for much of that growth, which is also creating a halo effect for Mac sales in China.

Oppenheimer told analysts to expect revenue of US$34 billion and earnings per share of US$8.68 for the June quarter. That compares to revenue of US$28.57 billion and earnings of US$7.79 per share for the fiscal third quarter of 2011.

Apple’s forecasted numbers would be a sequential drop from the revenue and earnings the company just reported for its second quarter. Oppenheimer said the company is expecting a sequential decline in iPhone sales, as Apple had ramped up inventory to meet pent-up demand. The company was also able to satisfy demand for the new iPad, thanks to a significant supply of tablets. The lower entry price for the iPad 2 and a stronger U.S. dollar are also factors in Apple’s forecast.

Stay tuned for additional details as they become available.

Apple to release Q2 results on Tuesday, April 24th

Posted by:
Date: Tuesday, April 3rd, 2012, 07:18
Category: Finance, News

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It’s not the most exciting announcement in the world, but if you have Apple stock, you might want to know about it.

Per Mac|Life, Apple has updated their website to include details of the company’s second quarter 2012 financial results for the January through March period. As usual, the conference call will be streamed live via QuickTime shortly after a press release is made public with the key details.

The company’s financial Q2 2012 report will include the first wave of sales for the new iPad, although Apple has already announced that more than three million of the tablets moved during the mid-March launch weekend.

Some analysts believe that Apple is on target to hit more than US$1,000 per share by 2014, which would make it one of the world’s first trillion-dollar companies, should such predictions come true.

The event will take place on Tuesday, April 24, 2012 at 2pm PST (5pm EST).