Apple posts another quarter of record revenues

[Smashchu2]

famousringo said:

Smashchu2 said:

I just searched, and I did not see "profit," or "Income," on there. High sales are good and all, but they don't mean jack if those sales don't turn profits. Gross Margin was also down (given, not my much). It's all about Net Income.

 

Income was posted in the thread at $3.25 billion. Sorry that I missed it in my highlights. It's also worth noting that Apple has deferred the cost of providing cases to all iPhone 4 buyers until next quarter, so you can wipe off $175 million of that income.

Gross margins are down because Apple is taking a slimmer margin than normal on the iPad to ensure that they seize the tablet market. The iPad's MSRP is only twice as high as iSuppli's estimated cost to manufacture, as compared to the iPhone which sells for over three times iSuppli's estimate.

One final point of interest. Apple's greatest growth these past few quarters has come in Asia. For a long time, Apple's strength was focused in North America, but now the majority of Apple's revenue is coming from overseas.

I only mentioned the profits because it was not mentioned, and it wasn't mentioned in the article (so you "forgetting," it isn't a big deal). I expected income to be high because sales were high and Gross margin remained about the same. So long as operating expenses were about the same, they'd be fine.

I do find this "tablet," market funny. Ipad is the only product I've seen from it. I also don't think it feels a niche. First quarter sales were good, but we'll have to see the long tail sales.