As The iPhone Drives Apple’s Second Quarter, The iPad Drives Its Future

Driven by the continued success of its iPhone, Apple reported revenue of $13.5 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, for its fiscal 2010 second quarter ended March 27, 2010. These figures are an improvement over Apple’s $9.08 billion in revenue and $1.62 billion in net quarterly profit in the year-ago quarter. Also, gross margin was 41.7%, which is up from 39.9% in the year-ago quarter. International sales accounted for 58% of the quarter’s revenue.

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Apple sold 2.94 million Macintosh computers during the quarter for a 33% unit increase over the year-ago quarter. Yet the company also sold 8.75 million iPhones in the quarter, representing 131% unit growth over the year-ago quarter. Additionally, Apple sold 10.89 million iPods during the quarter, which is a 1% unit decline from the year-ago quarter. The iPad went on sale on April 3, after the second quarter had closed.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49% and profits up 90%,” said Steve Jobs, Apple’s CEO. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

For example, the Wi-Fi + 3G versions of the iPad will be available in the U.S. on April 30. Apple’s retail stores will offer a free personal setup service to every customer who buys an iPad at the store, helping them to customize their new device by setting up their e-mail and loading their favorite apps from the App Store. U.S. Apple retail stores also will host workshops to help their customers learn more about the iPad. The Wi-Fi + 3G models will cost $629 (16 Gbytes), $729 (32 Gbytes), and $829 (64 Gbytes).

According to iSuppli, Apple will sell 7.1 million units in 2010, with sales doubling to 14.4 million in 2011 and nearly tripling to 20.1 million in 2012. While early adopters are driving 2010’s sales, iSuppli said, factors such as new applications, improved functionality, and declining prices will lead to the surge through 2012. And, iSuppli says that its estimates are conservative, as swift feature enhancements and the early addition of flash support could send those sales figures even higher.

“Looking ahead to the third fiscal quarter of 2010, we expect revenue in the range of about $13.0 billion to $13.4 billion, and we expect diluted earnings per share in the range of about $2.28 to $2.39,” said Peter Oppenheimer, Apple’s CFO.

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© 2012 Penton Media Inc.


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