The world may be recovering from a recession that shook markets to its core but Apple has sailed through the first quarter of 2010, reporting record profits thanks to the iPhone.The company reported net quarterly profit of $US3.4 billion, up on a year-ago
The world may be recovering from a recession that shook markets to its core but Apple has sailed through the first quarter of 2010, reporting record profits thanks to the iPhone.
The company reported net quarterly profit of $US3.4 billion, up on a year-ago’s quarterly profits of US$2.26 billion. The company’s profit and revenue is the highest all-time result for Apple.
Revenue was up $US3.8 billion from $US11.88 billion on last year’s first quarter to $US15.68 billion. Apple announced that 3.36 million Macs sold during the first quarter, which resulted in a bumper unit increase of 33% over last year’s figures. This represents 70% year on year growth in desktop sales.
But it was the iPhone that pushed Apple into its best quarter ever after it sold 8.7 million smartphones that represented a 100% unit growth over last year’s first quarter.
Around 70% of the Fortune 500 companies are testing and using iPhones, while more than 200,000 phones have been activated in China since November 9.
Sales were down on Apple’s iPods but the music device still sold more than any other music player and continues to gain market share. More than 20 million iPods were sold during the quarter, an 8% decline from the year-ago quarter. Overall, iPods still managed a 55% year on year growth.
Apple’s international sales accounted for 58% for the quarter’s revenue. The company generated more than $US$5.8 billion in cash during the quarter. Retail store sales increased 13% year on year.
Apple chief executive Steve Jobs said; “If you annualise our quarterly revenue, it’s surprising that Apple is now a $US50 billion company. The new products we are planning to release this year are very strong, starting this week with a major new product that we’re excited about.”
Mr Jobs has stayed mum on what the new product is and despite online speculation; the new product has remained a secret.
Apple’s chief financial officer Peter Oppenheimer said he expected revenue in the range pf $11US - $US11.4 billion for the second quarter of the 2010 fiscal year. Mr Oppenheimer added he expected diluted earnings per share of about $US2.06 to $US2.18.
