On the heels of a troubling double-digit slump in its share
price, Apple has announced its second quarterly profit had
jumped 93 percent from a year earlier, thanks to robust sales
of its popular iPhone and iPad.
Handily beating analysts' estimates, Apple posted quarterly
revenue of $US39.2 billion and quarterly net profit of
$US11.6 billion, or $US12.30 per diluted share. That's
compared to $US24.7 billion in revenue and $US6 billion in
profit, or $6.40 per diluted share, in the same quarter the
Driving the numbers were the iPhone and iPad. Apple said it
sold 35.1 million iPhones in the quarter ended March 31, 88
percent more than the same period last year. Sales of the
iPad, meanwhile, jumped 151 percent to 11.8 million.
"We're thrilled with sales of over 35 million iPhones and
almost 12 million iPads in the March quarter," said Tim Cook,
Apple's CEO. "The new iPad is off to a great start, and
across the year you're going to see a lot more of the kind of
innovation that only Apple can deliver."
"Our record March quarter results drove $14 billion in cash
flow from operations," said Peter Oppenheimer, Apple's CFO.
"Looking ahead to the third fiscal quarter, we expect revenue
of about $34 billion and diluted earnings per share of about
Investors seemed wary before results came out after the
market close. Apple shares steadily dropped throughout the
trading day before closing at $US560.28, down 2 percent, or
$US11.42, from its previous close. The stock took off in
after-hours trading, jumping 6 percent within 5 minutes.
Apple's numbers once again beat the street's estimates.
Analysts polled by Thomson Reuters expected the company to
earn $US10.02 a share for sales of $US36.7 billion.
Once again, Apple's most recent fiscal quarter had its share
of big news. The third-generation iPad came out in early
March and saw blistering sales right out of the gate, selling
3 million within the first four days. And on March 19, Apple
announced it would reward shareholders with a quarterly
dividend and stock-buyback program, scheduled to start later
But in recent weeks, it was the company's dipping share price
that dominated much of the coverage. After Apple shares
steadily increased to its all-time high of $US644 reached
earlier this month, investors started to turn their backs on
the stock, bringing down the price more than 10 percent from
its high. Analysts blamed a number of factors, including chip
supplier Qualcomm's warning of production problems and
Verizon's announcement that iPhone activations had weakened
in the previous quarter.