
Apple just reported its best quarter of all time, as covered by my colleague David Sarno here on the Technology blog.
The Cupertino tech giant reported a boost in sales of iPads, iPhones and Mac computers (but not iPods), pushing it into a record quarterly revenue of $46.33 billion and $13 billion in profit for the first quarter of the company's 2012 fiscal year.
Let's take a closer look at Apple's huge numbers for the quarter ended Dec. 31, which showed strong holiday sales and sent shares in the company up 8% after the markets closed Tuesday.
Cash balance — One major number to note from Apple's earnings report, as mentioned in its earnings call, is that the company has a cash balance of $97.6 billion, up from $81 billion a year ago.
That's a massive amount to be sitting in the bank and it's a sum Apple will spend in part on developing new products that will help it remain competitive against rivals such as Samsung, Sony, HTC and Motorola.
Revenue — Apple racked up $46.33 billion in sales in the 14-week quarter, which is up from $26.74 billion in the same quarter a year ago.
Profit — The tech giant reported a $13-billion profit last quarter, which is more than double the profit the company reported for its first fiscal quarter of 2011.
IPhones — Apple sold 37.04 million iPhones in the last three months of 2011, which marks 128% growth from a year earlier, when the company sold 16.25 million iPhones.
IPads — Sales of the ever-popular Apple tablet grew 111% when compared to the year-earlier quarter, with 15.43 million iPads sold for the company's fiscal 2012 first quarter versus 7.33 million iPads sold in the first quarter of 2011.
IPods — The iPod isn't dead yet, but it is on the decline. Apple sold 15.4 million iPods last quarter, down 21% from 19.45 million iPods sold a year earlier.
Mac computers — Apple's Mac line of desktop and laptop PCs — which includes MacBooks, iMacs, Mac Minis and the Mac Pro — saw a 26% increase in sales from the year-ago quarter, with 5.2 million Macs sold in the first fiscal quarter of 2012 and 4.13 million Macs sold in the first fiscal quarter of 2011.
"Portables," which would include the MacBook Air and MacBook Pro laptops, made up the majority of Macs purchased, with 3.71 million units sold last quarter, up from 2.9 million sold a year ago. Apple sold 1.48 million desktops last quarter, up from 1.23 million sold a year earlier.
Looking ahead, Apple said Tuesday that it is projecting it will record about $32.5 billion in revenue in the second quarter of its fiscal year.
[Updated: An earlier version of this post incorrectly stated that Apple's profit for the first quarter of its fiscal year was $6 billion. Apple reported a $13 billion profit last quarter and recorded $6 billion in profit a year earlier.]
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– Nathan Olivarez-Giles
Nathan Olivarez-Giles on Google+
Photo: An Apple Store in San Francisco. Credit: Justin Sullivan/Getty Images
Apple Inc. is selling a whole lot of just about every product it makes — and investors are loving it.
The company's stock shot up more than 8% after it announced that the holiday quarter was its best ever, with revenue and profit setting all-time records. Apple sold more iPhones, iPads and Mac computers than in any three-month period in its history.
The company smashed Wall Street projections with revenue of $46.33 billion in the three-month period ended Dec. 31, more than $7 billion more than analysts had expected and a 74% increase over its quarterly revenue from a year earlier. Profit was just as strong: Apple's $13.06 billion in earnings beat analysts' expectations by $3 billion, and the number more than doubled from the same quarter a year earlier.
"They just demolished it," said analyst Peter Misek of Jefferies & Co. "Everyone thought they were too big — that there was too much information out there and they couldn't pull off a surprise like this, but boy did they ever."
Apple's bestselling product continued to be its iPhone. The company sold 37.04 million of the devices, by far eclipsing its iPhone sales record of 20.3 million set in the April to June quarter. It also took a leap forward with its iPad, selling 15.43 million units of the tablet computer — more than 4 million more than it had sold last quarter in its previous quarter. Apple sold 5.2 million Mac computers, beating its mark of 4.9 million, also set last quarter.
“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Chief Executive Tim Cook in a statement. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline."
Analysts expect that Apple will have a strong year of new products, possibly announcing a new iPad in March, a newly redesigned iPhone during the summer and potentially an Apple-branded television set later in the year.
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– David Sarno
Photo: Philip Schiller, Apple's senior vice president of worldwide marketing, discusses a new textbook initiative in New York last week. Credit: Mark Lennihan / Associated Press
Apple has hit 100 million downloads from its online software shop, the Mac App Store.
When the company opened the digital shop in January of this year, its goal was to put an end to the old days of PC software on a box — the kind users bought from brick and mortar stores like Best Buy or Fry's, or Babbage's, or Software Etc., or Egghead Software, or the Softwarehouse, or CompUSA. (Am I missing any obvious ones?)
After all, the logic goes, software is just 1's and 0's — so why would you need to drive somewhere to pick up a shrink-wrapped package full of it?
So far, the approach appears to be working. The store is averaging 8 million downloads per month this year. That includes the summer launch of Lion, the latest version of its Macintosh operating system, which sold more than 1 million digital copies in its first day, far outpacing sales of any previous OS X release.
What the company did not say is how many of the 100 million apps downloaded were, specifically, its operating system — or how many of them were counted from the many free apps available on the store.
However, some companies do approach online software sales by offering free and paid apps. Autodesk Inc. offers a simpler, free version of its AutoCAD software through the store, and its $900 AutoCAD LT version for pros (or amateurs that get hooked).
Apple also said its iPhone and iPad-based App Store hit 18 billion total downloads. That store went online for the iPhone and iPod Touch in 2008.
– David Sarno (@dsarno)
Image: Graphic of Mac App Store Logo. Credit: Rob Boudon / Flickr
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