Apple profit rockets with hot iPad, iPhone sales
Technology ( 40 )
SAN FRANCISCO —
Apple on Tuesday reported that revenue and profit rocketed to record highs in the recent quarter as sales of iPhones and iPads more than doubled. Apple said its net profit more than doubled to $7.31 billion on unprecedented revenue of $28.57 billion in the quarter ending June 25.
“We’re thrilled to deliver our best quarter ever, with revenue up 82% and profits up 125%,” Apple chief executive Steve Jobs said in a release.
“Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall,” he continued.
Apple stock price which had pumped up in anticipation of stellar earnings results climbed even further, rising more than four percent to $393.50 a share in after-hours trading.
The Cupertino, California-based company reported that it sold 20.34 million iPhones and 9.25 million iPad tablet computers in sales figures that eclipsed the same quarter last year by 142% and 183% respectively.
Apple saw the number of Macintosh computers sold climb 14% to 3.95 million, while iPod sales slid 20% to 7.54 million units.
“We are extremely pleased with our performance,” said Apple chief financial officer Peter Oppenheimer.
“Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50.”
Apple announced that Wednesday it will release the latest version of its Macintosh computer operating system, dubbed Lion, which boasts more than 250 new features including support for touch-screen controls.
Sales of Macintosh were up 14% from the year-ago quarter and dramatically outpaced figures for the overall computer industry.
“We do believe that some customers chose to purchase an iPad instead of a new Mac during the quarter, but we think even more customers chose to purchase an iPad over a Windows PC (personal computer),” Apple chief operating officer Tim Cook said during an earnings conference call.
Apple sold every iPad 2 it could make during the quarter and has been hustling to increase supplies of the coveted tablet computers.
“Sales of iPad 2 have absolutely been a frenzy for people to get one,” Cook said. “We feel very good about the progress we have made ramping up.”
Along with being a hit outside of the workplace, iPads are increasingly being incorporated into operations at companies ranging from hospitals and retailers to airlines, according to Apple executives.
Apple revenue in China, Taiwan, and Hong Kong was $3.8 billion, six times that seen in the same quarter last year, making the area a key driver behind the company’s record financial results, according to Cook.
“There is an incredible opportunity for Apple there,” Cook said of the Asia-Pacific region. “I firmly believe we are just scratching the surface there right now.”
Stunning iPhone sales figures in the quarter were due in large part to demand in emerging and developing markets including China, Latin America, and the Middle East, according to company executives.
“That is great for Apple,” Cook said. “These are markets Apple has not traditionally been strong in and we are beginning to see the fruits of our labor.”
Apple reported that it has sold overall more than 222 million devices running on its mobile operating system.
Apple’s online iTunes store retained its crown as the world’s top music retailer.
During the conference call, Oppenheimer mentioned a “product transition” planned for later this year but declined to provide specifics.
© Agence France-Presse
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40 Comments
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-5
Noripinhead
I have to admit I was almost suckered into buying one of those iPads. It's a poor excuse for a real computer. Where's the real functionality? And the screen display was surprisingly bad. It's all hype. Tell me that I'm missing something.
3
Jason Lok
Whoever said the iPad was a real computer?
-4
ExportExpert
Yeah nearly got sucked in to buying an i phone then docomo released the new galaxy s2, glad i bought a superior product with more fucntionality, plus its not locked.
Pointless buying something thats locked. But then you know what they say about mac users and people who buy apple products dont you.
2
hoserfella
What do they say export?
0
johninnaha
I have no idea what Noripinhead thinks a "real" computer is.
But, here're some of the things you can do with an iPad;
Compose music - Garageband for iPad is a lot of fun. Hook it up to a keyboard (or use the onscreen display) and a speaker system and you have a portable studio.
Tune an instrument - The most accurate way to tune a guitar or anything else.
Watch movies/YouTube - The screen is plenty big enough and viewing angle wide enough for two people to watch.
Listen to music - Goes without saying.
Write/Crunch numbers - Pages and Numbers handle most writing and spreadsheet needs, opening and saving MS Office docs (don't know why you would want to do this, but there are some who do).
Remote/couch potato - Use it as a remote control for my music system.
Email - Works fine.
Calendar/schedule/contact - iCal, Addressbook and Things take care of organization.
Camera - Take photos, movies and edit them.
Presentations - Keynote is light and easy to use, make presentations really easily.
Games - More games than you can shake a stick at.
Apps - Apps for just about anything you could think of - more than 100,000 of them!
All completely free of viruses and Malware, fast, responsive, rock solid stable, doesn't crash or freeze, with ten hours battery life and small enough to slip in a shoulder bag without noticing it.
I think it was MonkeyMan Ballmer who made the comment about it "not being a real computer," and "a tablet has to be able to do anything a "real computer" does."
I'm sure he thinks he's right.
Noripinhead agrees with him, but the 9.25 million people who bought iPads this quarter don't.
-3
gogogo
what planet of dream land are you living in? Apple's market share is only like 8%... Mac's are only good for audio, graphic and making you feel warm and fuzzy.
-3
electric2004
johninnaha:
Sorry to correct you. We own both Ipod and Ipad, and I have experience that the I-pod e-mail client can crash, when a mail has more than one big attachment (for example some attached photos). Other than this, apps on Ipod and Ipad can crash. You will notice, when you connect to I-tunes on the PC and I-tunes asks if it is allowed to send the crash-reports to apple. The biggest difference between a real computer and an Ipod or Ipad is, that it is hard to program oneself. If one wants to try, one needs another computer (a normal mac) as cross development platform.
3
cleo
Gosh I didn't know that....and here's me thinking I'd been earning a living on one for the past 20 years....
1
Noripinhead
I guess my first impression after picking one up was that I wasn't able to see what's "under the hood". Mind you, I haven't really played around with it yet, so I'm just looking for information and curious if you can indeed see the system and settings, etc. as you can with a regular computer.
-4
gogogo
cleo: yep while the guy on the PC is actually doing all the work :)
2
johninnaha
electric2004
I have had an iPad for about a year, and a selection of iPods for several years. In spite of extensive use, NONE of these has ever crashed or frozen. Not on the email application or anything else.
You mention PC and do not seem to know how to spell iPad, iPod or iTunes, so I wonder if perhaps you are new to the iPad and if you are using iTunes on Windows. It may be your lack of familiarity with it and the platform that is causing it to crash, or you are doing strange things with it.
As for programming it, there are those who jail break iPads, etc., someone even had Linux running on one, so if you feel you have to tinker on one, you are quite welcome to.
I understand the need to tinker. I had several British motorbikes when I lived in the U.K. You couldn't go much more than 50 miles without having to adjust the tappets and all kinds of wonderful things. But I much prefer the Yamaha 125 I use these days. You just fill it up with gas when it needs it and it gets you from A to B.
This is why I like Apple products. They enable me to concentrate on what I'm doing on them and I don't have to continually futz with them to keep them going.
2
cleo
gogogo - What guy on what PC?
3
ka_chan
You know if you had bought Apple 5,000 shares of Apple at $5 per share in the mid 90's, you would have about $1.89 Million at today's price of about $377.
-2
gogogo
cleo: everyone's mileage varies and I'm poking a bit of fun, I've always found mac people to have 100 excuses not to have gotten their work done or are really busy ... chatting... or something like that.... I love apples designs but they are a distraction I think... rock on PC's :)
1
cleo
gogogo - My #1 excuse for not getting my work done is the distraction of JT, which I imagine would be no different if I were on a PC...#2 excuse/reason is the lady down the street asking me to come and sort out her PC again cos she can't get it to do what she wants/it's crashed again/it's sending out weird error messages that she doesn't understand.....
If I had a guy willing and able to do my work for me (while I still get the money) I wouldn't care if he did it on a PC.
What's the distraction?
0
hoserfella
cleo - theres no distraction. Tech geeks love to slam Apple products for no other reason than to feel like they are in some elite clique.
8
ExportExpert
It all began with an iPhone .. my son was celebrating his 16th birthday, so I got him an iPhone. He just loved it. Who wouldn’t?
Then, my birthday came along, and my wife made me very happy when she got me an ipad
Then it was time for our daughter’s birthday, so I got her an ipod touch
Last but not least, it was time for my Wife’s birthday. So I got her an iRon.
All hell broke loose after that.
0
AU_user_since_1998
If you are a a biker where you always put your iPhone in a pocket (and it's rainy days); or a person working or living in a wet environments, don't buy iPhone 4. It is very weak in waterproofing even for a small amount of rain or splash of water, wet pocket or wet hands.
You will just end up paying 26,000Yen (330USD) for the repair.
Android phones now are more hardware- and software- superior and more durable.
That is why in the US, the only strategy of Apple is LITIGATION against Android hardware manufacturers. Apple now teams up with Microsoft and Oracle/Java in LITIGATION against Android Phone makers and with Google.
1
NuckinFutz
I'm reading all these posts on my iPad 2, works great for me!
-1
gogogo
cleo: I'm not slamming their reliability, I personally think people using them take 10 times longer to do anything... if a person can't use a PC give them a mac... it's all shiny and will make them think they are doing work :)
1
minello7
ExportExport thanks for the humour best laugh i've had today.
3
timeon
in my job (research), Macs are really popular, because of reliability and speed mostly. Me and my students are satisfied, and I would never go back to PC. My wife bough a PC recently, but she still keeps on using my Mac most of the time. Reason: easier to use, faster and doesn't freeze. The only bad thing is that for some reason, we are using MS Office, and this guy sometimes freezes or gets slow
-2
gogogo
timeon: I don't know why people say PC's freeze... as the IT tech guy always says the problem is nearly always the user :)
0
ihavegreatlegs
I love all my Macs. Now, some times I restart if I have been using it for 3-4 days with heavy photoshop, SKYPE, mail, three browsers, garage band/logic 8 while watching movies in VLC player and downloading a few torrents at a time. Gotta love those Macs
1
malfupete
@ka_chan: Apple almost went bankrupt in the mid 90's. From about Feb 01 to March 04 it was trading pretty flat between 9 ~ 14 bucks and didn't really start to pick up until that fall/winter. It certainly would have been nice to have bought 5000 shares @ $5, knowing what the outcome was.
Even though their earnings were spectacular, the stock is only up 3.5% (@11:00am est) trading at 389~390 so who knows what investors are thinking
2
Disillusioned
That's funny! So, they are only good for audio and graphics? Oh, I see! Obviously these are things you have no interest in cos trying to do either on a Windoze machine is like trying to get blood out of a stone.Yeah, the market share is just over 9%, but how many Windoze l/users can say they enjoy the experience?
I have been a Mac user for over a decade and all the negativity comes from Windoze l/users who have never owned or used a Mac.
Once you have had a Mac you will never go back!
1
AU_user_since_1998
Since 2007 when iPhone was introduced, Apple earnings is always rosy, seems to be unstoppable............ But it will be changing in the near future, if not sooner. Apple can feel it.
http://www.dailytech.com/Apples+Plot+to+Kill+Top+Android+Maker+HTC+Nears+Fruition+With+Win/article22173.htm
--
http://www.dailytech.com/EDITORIAL+How+HTC+May+Survive+Apples+Brutal+Legal+Assault/article22184.htm
--
Loss of manufacturer would be a huge blow to Android
Apple, Inc. (AAPL) has struggled to compete with Android. Its newest phone is over a year old, and looks badly dated compared to the latest slick Android hardware. And it's being outsold over two-to-one by Android globally, according to market researchers. But Apple has a secret weapon -- litigation.
-2
johninnaha
The biggest joke about the "Macs are only good for graphics and audio" line is the fact that these are functions that require computing power. So, if a computer can handle graphics and audio well, word processing, spreadsheets and email are a piece of cake.
You might say that email, word processing and spreadsheets is about all that PCs are good for.
And picking up viruses and malware, of course.
0
sfjp330
iPhone, when it emerged, was well behind many smartphones in terms of its capabilities. The problem with Windows Mobile apps was that you had to hunt them down. They weren’t organized in a nice, vetted location. They were scattered all over the web. But the iPhone made a pocket computer that’s also a phone intuitive to use, just as Palm did for PDAs. Android’s not as intuitive. I wish it were, I wouldn’t abandon iPhone for Android. Android remains like evolution of Windows Mobile, where you have to constantly go to menu options to get stuff done whereas the iPhone presents what you need when you need it.
0
electric2004
johninnaha:
There is a Kanji Dictionary application (Kotoba) for both iPod touch and iPad (If I spell it that way I get red underlines at "iPad"). After using to look up more than 20 times, it seems to stop being able to access its database. Then I have to leave and restart the program.
And no - so far I did not do strange things with iPad or iPod touch.
About jail-breaking - I understand the idea, but this is definitely not recommended, if one wants to use the apple store.
I am using Linux at work for particle dynamics simulations and I try to keep the programs in way that they can compile on Linux, but also on PC with Cygwin, and (partially) on a Intel-CPU based Mini-Mac and a PowerPC based Notebook. This helps to decide, if some strange results are related to the compiler, to the program itself, or the computer environment (system libraries).
But, as the iPod or iPad don't have antivirus software, we are not allowed to connect them to the network at work. We have been explicitly warned. So basically its good for entertainment at home.
Yes, I am new to the iPad, but I have longer time experience with a simple iPod with 6GB Harddisk and about 1 year experience with iPod touch. So I have been through many Apple Quicktime and iTunes updates, which where sometimes flawed, e.g. there were versions that could make a Windows computer unstable.
So, sometimes Apple products even if they look and feel good are not always perfect.
0
NetNinja
I'm a PC. if you are all Macs it doesn't bother me a bit.
Apple's Iphone has the speed and power. Too bad I had to jailbreak it just to have some fun.
I think Apple is losing it's touch. Ipad 2 was....well....It was Ipad with a number behind it. Reminds of the scene from Tron Legacy when they have their first meeting about the new OS.
Most of tech friends aren't even excited about Iphone 5.
Steve Jobs: Hey Rocky, watch me pull a rabbit out of my hat. US: Again?? Ipad 2 was heartbreaking. Had they reduced the price, that would've been a nice trick.
Yeah I wanted one. They make nice presents. Got my mother-in-law one for her birthday.
She's still a little confused how to use it but she loves it and she does use it when she wants to relax and browse the net. They need to bring the price down.
-1
johninnaha
electric2004 - I'm afraid I don't know the Kotoba application. I just had a look on the iTunes store and the only app with that name is a collection of Haiku and photographs. There is no app with a name like Kotoba in the Kanji Dictionary list for iPad. Perhaps it's an older application that got deleted from the store. This may be the problem.
About jail breaking - I completely agree.
The networking rules at your office speak volumes. You're not allowed to connect an iPod or iPad to the network because they don't have antivirus software! OMG! What an amazingly Windows-centric viewpoint! Windows attracts viruses like flies around a jam pot, so every OS is the same!
In the ten years that OSX has been out, there have been no viruses for it. Not "fewer viruses" NO VIRUSES. Trojan horses yes, but no viruses.
I'm not familiar with Linux, but from what I've heard, that's very secure too.
Malware is a Windows problem. And becoming an Android problem too, apparently.
Oh, and I completely agree with you that not everything is perfect with Apple products.
But I honestly have never had an iPod or iPad freeze or crash.
1
gogogo
Don't believe the apple marketing machine, there are thousands for OSX... virus writers couldn't be bother with a Mac... of course PC has millions but what you gonna do :p
0
electric2004
About Kotoba: I forget to write the exclamation mark.
So the full name is "Kotoba!". My mistake.
It still exists in the store:
http://itunes.apple.com/jp/app/kotoba-japanese-dictionary/id288499125?mt=8
About the networking rules: No problem to connect a standard Mac with OS-X to the network - as long as antivirus software is installed. And the company provides the most recent versions of antivirus software for both Mac and PC.
In the beginning, when the first iPad was available, some colleagues found it is a very nice tool to show presentations (which they made before on a "normal" Mac).
But because of the lacking anti-virus software the usage of iPad connected to the network was no longer allowed. At least from one colleague I know, he then was allowed to get a Mac Book Air at work instead.
The place where I work, although "independent" in its name has to follow the rules and Japanese Government set standards.
0
LostinNagoya
Here's my "PC-Mac" experiente: I first set my iMac half Windows, half Mac, for I didn't know how to use Macs. But after one week I gradually started using the Mac side more and more, and eventually erased Windows from the machine for good. The only program I had to use on Windows was a forex one, but eventually I got a Mac version of it. Windows, it was good, excelent, vital to me until I discovered Macs. Now I have three machines, all Macs, most of my friends too are changing to Apple. The ones who havent' yet, they are planning to do so after they experienced iPhones and had the chance of handling Apple's software. The thing about Apple is that when you have one of its devices, you don't complain about them. Quite the contrary, I am one who recommend Apple to whoever asks me about Macs, iPhone or iPad. Never had a single problem with one of them. They may not be 100% perfect, but they are the best in the market. Oh, and the most cool too.
0
LostinNagoya
@Ihavegreatlegs: I don't restart it after heavy using, I just activate the Disk Utility and everything works perfectly.
-2
TakahiroDomingo
apple makes the hottest, good-for-nothing, hi-tech you want something useful, look elsewhere
-1
johninnaha
electric2004
I found the application, Kotoba! and installed it. It's free and very useful. Thanks!
I put it on my iPad and played around with it for an hour or so and nothing unusual happened.
I wonder if you have installed the recent updates?
On the networking rules, Japanese often go overboard on safety.
Kind of.
One day I was in Kitahiroshima (Hokkaido) station. I got on the escalator to go down to the platform and heard the usual canned message that "Escalators are very dangerous (tai hen kiken desu kara ...)" and that people riding on the escalator should stand between the yellow lines. Since the yellow lines go right to the edges of the steps, I wondered how anyone would manage to stand outside them - perhaps a person with very, very thin feet.
Anyhow, as I stood on the platform, with no announcement whatsoever, a cargo train roared through the station, doing, at least 100 kph.
That, evidently, wasn't dangerous.
But the escalator was.
0
littlebear
wow...mac vs. pc...so heated it reminds me of the once super awesome ads. i have been a mac user since I was 7 years old. I've had both os's..I personally enjoy mac os more. and I really enjoy thunderbolt..I can download or transfer from one machine to another 3 terabytes in 6 seconds..i have to admit it really is useful for all my design work. iOS5 I am still playing with, but it does have definite improvements. I think long term users will definitely see the progression. I do admit I enjoy UI too, they seemed to spend a great deal of time merging and narrating all the experiences together. I do hope apple can put a stop to the android theft.
0
jonobugs
I'm a computer/gadget guy. Love them, always have. I've used Macs, PCs, and systems with Linux. They all have the pros and cons. When I first saw the iPod Touch, I bought one for a present and was so impressed bought one for myself a few weeks later.
I really wanted to buy the iPad when it first came out, but like a lot of people wanted something that could replace my laptop, which the iPad isn't designed for. Even Apple will be the first to tell you that the iPad is NOT a replacement for your laptop or computer. Watch their ads.
When my laptop screen died on me I needed something to replace it quick because I used it at work to show videos. I was thinking about getting another laptop, but I didn't want to spend the cash on a laptop just for that. I convinced my boss to purchase an iPad, and haven't regretted it at all. I can't do all the things I could do that I could with my laptop but it does what I need much better than the laptop. I can easily whip it out to show a quick video clip. I also use it for many other things at work.
After seeing it at work, I decided to buy the new iPad 2 for myself. I now have a PC, iPad 2, iPod touch and a Mac at home. I normally use my PC for most things but when I want to surf the web really quick or send off a quick email I often grab my iPad as it's faster and easier and I can relax on the couch. I also use it to read books/manuals, etc.
I haven't really used the Mac yet as I just recently bought it (second hand) and I'm having a technical problem because I wanted to hook it up to the wireless internet. However Apple no longer makes the WiFi component for this so I ended up buying a USB wireless device which I can't seem to get working. Before this, I mainly have experience with PCs (which I built myself) so dealing with the Mac tech side has me a bit puzzled.
Anyway, the point is that both sides of the Mac/PC argument are correct and incorrect about the generalizations. Macs CAN be easier to use (for the most part) but not always. PCs do tend to be more adaptable and more configurable but are burdened with other problems such as incompatibility and are targets for viral infections. I do find that a lot of people tend to make judgments about the other platform without solid information. Some people do have good information, but are often extremely biased and one sided in their views and neglect to recognize all the facts.
In the end, people vote with their money. iPods/iPhones and iPads are now a strong presence when virtually no one had even heard of them 3 years ago. That's pretty amazing. Now, others are trying to catch up. I do hope that some other manufacturer makes an even better device!! By the way, I've been using my iPod touch for about 3 years now and yes, I've had it crash on me as well, but I've only had to do a hard reset once. I can't even count the number of times I had to reset my PC. I've also had some recent syncing problems with my iPad. (Don't close the smart cover while syncing!!)
So, nothing is perfect, but so far, so good!
I think it's wonderful that there are so many options available and look forward to the next tech break through.
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