Antenna problems with the iPhone? Pish posh, it seems that over 14 million people just didn’t give a hoot last quarter, and that led to Apple having a record breaking quarter across almost every aspect of its growing product line. Except for one, but read on for more on that.
As we reported last week, it looked like Apple was on track to report its first quarter to exceed $20 billion. This rumor led to Apple stock breaking through the $300 share price, and hitting a record high. Good thing that it came true.
Apple reported today that its revenue hit $20.34 billion, an increase of $8.1 billion, or 67 percent, over the same quarter last year. This works out a quarterly profit of $4.31 billion, or $4.64 per diluted share. International sales accounted for 57 percent of the cumulative sales.
Each category broke down for year over year as follows:
- Macs – 3.89 million units, up 27% from the same quarter last year
- iPhones – 14.1 million units, up 91% from the same quarter last year
- iPod – 9.05 million units, a decline of 11% from the same quarter last year
- iPad – 4.19 million units, no data for last year
As this was the final quarter of Apple’s fiscal year, some more interesting numbers are that iPhone sold 40 million units for the year, which is a 93 percent increase for the year. The iPad, in only two quarters of availability, sold nearly 7.5 million units.
“We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings—both all-time records for Apple,” said Steve Jobs, Apple’s CEO. “iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year.”
“We’re thrilled with the performance and strength of our business, generating almost $5.7 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $4.80.”
Considering Apple tends to lowball their projections for upcoming quarters, one has to wonder if we might be looking at a $25 billion dollar quarter for the Oct. to Dec. time period.
Surprisingly, Apple CEO Steve Jobs dropped in on the earnings call, not something he usually does, but he could not resist speaking up in celebration of Apple’s first $20 billion dollar quarter. Besides talking up all of Apple’s products, he also couldn’t resist taking some serious swipes at the number of seven-inch tablets coming to market, and the serious issues of using Android on those units. To say he was less than positive about these products would be an understatement as he went through a list of six points as to why he feels they will be bad for consumers.
If you were wondering where the Apple TV, also known as “the hobby”, was on the list of sales, Mr. Jobs said that it had sold 250,000 units since it relaunched and they are quite happy with that number.
One thing not mentioned in the earnings report, but questioned in the call was how much the iPhone bumper program cost the company, and Mr. Oppenheimer said it cost them $100 million last quarter. The projection was for about the same in the next quarter. Still far cheaper than the recall program people thought they should go with.