Apple sells 8.75 million iPhones as profit surges 90%
For Apple, the good news just keeps on coming.
Profit for its March quarter surged 90% to $US3.07 billion this morning, the company reported this morning.
Revenue was up 49% to $US13.5 billion.
Apple said it sold a record 8.75 million iPhones during the three months to March 27, a 130% increase over the year-ago quarter.
Sales of iPods were up only 1%, to 10.9 million – but Apple investors are unlikely to be worried about customers transitioning to higher-margin iPhones.
Sales of Apple computers were up 33% against the year-ago quarter to 2.94 million.
Apple's latest sensation, the iPad, was released after the quarter closed.
To top it off, while Apple has traditionally been guarded in its guidance, it predicted a healthy profit and revenue increase for its current quarter.
Apple (NAS: AAPL) shares rose 6% after hours to yet another all-time high before falling back.
Whoops
The only blight: a lost prototype of the coming 4th generation iPhone.
The top-secret handset was inadvertently left in a bar by an Apple employee in Redwood City, California.
The 4G prototype soon turned up on geek site Gizmodo, which paid $US5000 for the handset – the first known instance of chequebook journalism in tech.
Read Gizmodo's report on the incident here.
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Comments and questions7
That leak is sure to cost Apple some sales this quarter. Who would want to buy a 3Gs now when a complete redesign is around the corner. Expect prices to drop if sales slow.
Doubtful.
Apple has just iced every iPhone 3G and iPhone orginal owner with the OS4.0 upgrade.
It will wear a slow quarter on the chin knowing that the 50 million iPhone owners (worldwide sold since launch) will once again pay for the next model. One that will, finally, have a decent camera, video calling capability and multi-tasking capability.
Sorry to the previous owners that paid, on average, USD600 for their phone but we'd like you to upgrade again. To those people that are on their 3rd or 4th phone - thanks for making us shareholders very very happy.
A 90% climb in income sure does great things to the share price. :)
Apple doesn't need to drop its prices. You only do that when your products aren't good enough to beat the competition.
• Tim Cook: In our view, there was no obvious impact from iPad on Mac or iPad in quarter. Going forward, we'll see how it goes.
• "Future product transition" to impact margins
• Apple on track to open 40-50 new Retail Stores globally in 2010
• 284 Apple Retail Stores average revenue of $5.9 million vs. 5.8 million in year-ago quarter
• About half the Macs sold in Apple Retail Stores were to customers new to Mac
• Apple Retail Store revenues were $1.68 billion vs. $1.38 billion in the year-ago quarter
• Apple pleased with iPad launch and reviews; 3G to ship on April 30; both iPads
• JD Power 2010 U.S. Wireless Smartphone Customer Satisfaction Survey: iPhone #1 - again
• iPhone ASP about $600
• 3,500 new apps designed for iPad
• More than 185,000 apps in App Store currently
• Best non-holiday quarter ever, with revenues up 49% and profits up 90%
• Q3 - 2010 EPS guidance: "about $2.28 to $2.39"
• Q3 - 2010 revenue guidance: "about $13 billion to $13.4 billion"
• iPhone units: 8.75 million vs. 6.8 million Street consensus; 131% YOY growth
• iPod units: 10.89 million vs. 9 million Street consensus; 1% YOY decline
• Mac units: 2.94 million vs. 2.7 million Street consensus; 33% YOY growth
• EPS: $3.33 vs. $2.44 consensus
I just played with one this morning.
Its freaking amazing. I'll definately be buying the 3G version when it becomes available.
Apples blatant planned obsolescence is too obnoxious for me to buy into. Add that to the irritating iTunes which I just can't bring myself to sync with regularly and the outrageous changes to the iTunes terms and conditions (more than 60 pages of T&C's which Apple expected me to read before allowing me to download a free app recently, including the inability to use your apps overseas) and I'm going to be looking closely at EVERY Android, WM, WP7, Palm and Symbian alternative before signing up to another 2yrs of servitude to Apple and accusations of fanboyism from fellow online forum members.
I don't care how many new left-out features Apple have included in the next model, I'm well aware of the fact that Apple is after a significant slice of online advertising revenue with OS 4.0 and I don't intend to hand them such a massive revenue stream (and the power that goes with it) with my blessing lightly.
Top of my list are the Sony Ericsson Xperia X10 and Vivaz, Google Nexus One, Palm Pre and Motorola Droid. By October when my iPhone 40 plan runs out there will probably be more contenders.
Hey Carkitter,
If you enjoy tinkering with the innards of your phones OS then Android and any phone running it might be ok but getting great performance from a generic app from any one of the available Android app stores might be a different story.
As to Windows Mobile Phone 7 - forget it. Microsoft has left developers out in the cold with a completely new operating system and developer kit that will not work with any previous Windows Mobile Phone and no established customer base to sell to. Also their current "Kin" marketing campaign is about as effective as Bill and Jerry's efforts at making Vista look "cool" and "hip".
What about Palm? - well Palm is up for sale after a horrible year and lackluster sales.
Symbian - well it may be wide spread but it is an old "has been" of a mobile operating system that is past its use by date.
As to the rest - Sony, Motorola etc expect them to get mowed down in due course by the iPhone and its growing sales numbers and profit mountain so by October I would expect less contenders rather than more.
So good luck with your decision there, Carkitter.
According to CNN they are not so good.
"Should you hop on the Android bandwagon? Be wary," Jonathan Blum reports for CNNMoney.com.
Here's what I've learned deploying Android phones throughout my business.
Lesson #1: Unless you're careful, too much software brings Android to its knees. Google made its mobile computers like any computer: They run more than one program at a time. Android phones can multitask mobile stuff like telephony, SMS and e-mail with complex apps like turn-by-turn directions, accounting packages and social networking tools. Initially, all this Android worked well. But as our demos wore on and we loaded more apps, installed more contacts and sent more e-mail -- that is, as we did more real business -- all these programs running at once stressed the phones' limited processors and memory. Performance began to lag. And I mean, lag... Google says it is not responsible for how third-party apps perform on its phones, and it stands behind the performance of Android in its factory configuration."
http://money.cnn.com/2010/04/21/smallbusiness/google_android/
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