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Apple's Earnings Continue to Stagger Industry Observers

April 20, 2011

Apple's Earnings Continue to Stagger Industry Observers

By Juliana Kenny
TMCnet Web Editor

The ever-profitable Apple (News - Alert) revealed its Q2 2011 earnings this afternoon with 83 percent revenue growth, and 95 percent profit growth in a call with its officials, toppling expectations of analysts and its own projections.

Having targeted revenue of $22 billion and diluted earnings per share of about $4.90 for the second quarter, Apple traditionally either tops or reaches its projected earnings goals, and this past March quarter was no exception. Apple posted $24.67 billion in Q2 revenue, with net profit of $5.99 billion, or $6.40 per diluted share.

Steve Jobs (News - Alert), Apple’s CEO, stated, “With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders. We will continue to innovate on all fronts throughout the remainder of the year.”

Peter Oppenheimer, Apple’s CFO, revealed in the earnings call that through a combination of successful iPhone (News - Alert), iPad, and PC sales, the company experienced 28 percent sales growth as compared to the previous March quarter sales, making this March quarter the 20th consecutive quarter the company has outperformed the projections for the PC market.

Oppenheimer elaborated, mentioning that growth was fueled by the Macbook Air updates as well as strong sales in the Macbook Pro lineup. The new Macbook Pro offers twice the speed of the previous generation’s PC.

Analysts had projected mixed reviews, considering the potentially lower numbers of sales for iPads, but even with that number on the “low” side (4.69 million iPads sold during the quarter), the company still managed to exceed its own expectations in revenue.

Though the company’s iPod sales continue to dwindle year over year, Oppenheimer mentioned that the iPod sales continue to exceed Apple’s expectations for sales. This past quarter witnessed the sale of 9 million iPods.

Having sold 18.6 million iPhones this quarter versus, Apple now “has distributed iPhones through 186 carriers in 90 countries,” stated Oppenheimer. He discussed a bit of the company’s projections for the year and noted that it anticipates “opening over 40 new stores in the fiscal year 2011.”

Juliana Kenny graduated from the University of Connecticut with a double degree in English and French. After managing a small company for two years, she joined TMC (News - Alert) as a Web Editor for TMCnet. Juliana currently focuses on the call center and CRM industries, but she also writes about cloud telephony and network gear including softswitches.

Edited by Tammy Wolf


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