Is there any stopping Apple
? Who knows. Just a day after Steve Jobs
shook the core of Wall Street by announcing
that he was leaving for
medical reasons (temporarily, we're left to assume), the company's first
quarter earnings results were able to turn the frowns upside-down.
Apple has been on a real streak of late, breaking record after record
for profits, revenues, and iPhone
devices sold. Q1 2011 is no different,
and the company is poised to sell even more iPhones as they come to
Verizon Wireless next month.
The earnings report found record revenue of $26.74 billion, a record net
quarterly profit of $6 billion and a gross margin of 38.5 percent
compared to 40.9 percent in the year-ago quarter. Perhaps amazingly, 62
percent of Apple's revenue this quarter came from outside of America.
Apple sold 4.13 million Macs during the quarter, a 23 percent unit
increase over the year-ago quarter, which is all the more amazing when
you consider that Q1 is the quarter right after Christmas. In other
words, a lot of people took that Santa Cash and spent it with Apple.
They also sold 16.24 million iPhones in the quarter, showing a crazy 86
percent unit growth over the same quarter last year. Apple sold 19.45
million iPods during the quarter, which actually represents a 7 percent
drop since last year. But Apple has been telling investors to expect iPod
sales declines; more and more people are buying phones that double
as media players, leaving the dedicated media player out in the cold.
At this point, there's hardly anything to say that hasn't been said in
the previous 6 or 8 quarters. Apple really is firing on all cylinders,
and we're interested to see if the reported iPad 2 and iPhone 5 can take
them over the top even more.
Apple Reports First Quarter Results
Record Mac, iPhone, iPad Sales Drive Highest Revenue and Earnings Ever
Revenue Grows 71 Percent; Earnings Grow 78 Percent
CUPERTINO, California—January 18, 2011—Apple® today announced financial results for its fiscal 2011 first quarter ended December 25, 2010. The Company posted record revenue of $26.74 billion and record net quarterly profit of $6 billion, or $6.43 per diluted share. These results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter. Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.
Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7.33 million iPads during the quarter.
“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Steve Jobs, Apple’s CEO. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”
“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”
Apple will provide live streaming of its Q1 2011 financial results conference call beginning at 2:00 p.m. PST on January 18, 2011 at www.apple.com/quicktime/qtv/earningsq111. This webcast will also be available for replay for approximately two weeks thereafter.