Recession? What recession?
Apple 1Q Profit Up 50% On IPhone, Mac Sales >AAPL
Apple Inc.'s (AAPL) fiscal first-quarter profit jumped 50% as the consumer electronics giant doubled the amount of iPhone smartphones it sold and posted unexpectedly strong sales of its Macintosh computers. Results easily topped Wall Street's expectations.
In the quarter ended Dec. 26, 2009, Cupertino, Calif.-based Apple on Monday said it sold 8.7 million iPhones during a very strong holiday sales period.
The company called the performance its "all-time highest revenue and profit" in a press release announcing the financial results. That was partly driven by an accounting change for the iPhone that boosted the company's performance.
"There was tremendous momentum through the holidays, especially for Macintoshes and iPods," said Apple Chief Financial Officer Peter Oppenheimer in an interview with Dow Jones Newswires. Meanwhile, Apple gained market share in the computer, media player and smartphone markets during the quarter, he said.
For the quarter ended Dec. 26, Apple reported earnings of $3.38 billion, or $3.67 a share, up from $2.26 billion, or $2.50 a share, a year earlier. Revenue increased 32% to $15.68 billion, with 42% of sales in the U.S.
In October, Apple said it expected earnings of $1.70 to $1.78 on revenue of $11.3 billion to $11.6 billion. Wall Street's latest expectations were $2.08 and $12.08 billion, respectively.
Shares were halted in after-hours trading prior to the release of Apple's report. They were up 2.7% at $203.07 in the regular session.
Apple's results were increased by a change in the way it accounts for iPhone revenue. The company is now recording iPhone revenue as it comes in. It had been accounting for the payments over a period of 24 months.
In addition, Apple sold 3.36 million Macintosh computers in the latest quarter, up 33% from a year earlier.
"I was surprised by the strength of the Mac sales," said Bill Kreher, an Edward Jones analyst.
Macintosh and iPod sales were boosted by "being the best product in the market," Oppenheimer said, as well as the introduction of some new Macintosh computers. "This really helped us," he said. Despite other tech titans reporting slowness in Europe, Oppenheimer said sales were up substantially.
Apple has defied the recession with its slick laptops and smartphones. There has been some concern over margins, which have faced pressure as the company lowers prices, although Apple has been successful in locking in lower prices for components like screens and memory chips.
The maker of computers and electronic devices, notorious for giving conservative guidance, said it expects fiscal second-quarter earnings of $2.06 to $2.18 a share on revenue of $11 billion to $11.4 billion. Analysts polled by Thomson Reuters expected $1.77 and $10.37 billion, respectively.
In the latest quarter, gross margin grew to 40.9% from 37.9%.
The company sold 21 million iPod media players, down 8%. Sales of iPods were expected to decline, although the unit could be boosted by higher average selling prices, as more consumers gravitate toward the iPod touch.
On Wednesday, Apple will debut its newest device--widely expected to be a touch-screen tablet device--and it may also unveil a new version of the software underpinnings in its iPhone. Some have speculated the new gadget, possibly named iSlate or iTablet, will be a hybrid device that falls somewhere among an iPod Touch, an iPhone and a Macintosh computer.
http://online.wsj.com/article/BT-CO-20100125-714576.html?mod=WSJ_earnings_MIDDLETopHeadlines
Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.
