Apple posts $1.07 Billion in Profit for Q3 2008

[aphex]

Link

Dang, thats just crazy.

Apple announced their 3rd Quarter 2008 Financial Results today. Apple posted revenue of $7.46 billion and net quarterly profit of $1.07 billion (or $1.19 per diluted share). This compares favorably to revenue of $5.41 billion and net quarterly profit of $818 million (or $.92 per diluted share) in the year-ago quarter. Apple shipped 2,496,000 Macintosh computers and 11,011,000 iPods this quarter.

"We're proud to report the best June quarter for both revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months."
Looking to the fourth fiscal quarter 2008, Apple expects to earn a revenue of $7.8 billion and earnings per diluted share of about $1.00.

The Mac sales numbers represent 41% unit growth over last year's quarter and the iPod sales represent 12% unit growth over last year's numbers. As we previously reported, Apple's results do not include iPhone sales, which were deferred until the 4th quarter. Apple's financial results webcast will begin at 5pm ET / 2pm PT. MacRumors will provide running highlights of the webcast.

Highlights:

Conference Call Highlights

- Very pleased to report highest June quarter earnings and revenue.
- 38% growth in revenue over previous year-ago quarter
- Highest quarterly Mac shipments ever
- Continues to see healthy growth in all regions, sales in retail stores very strong
- Mac: 2.5 million Macs shipped. Most in any quarter in Apple's history.
- Apple's share of total personal computers up to 19.5% in June
- Best Mac quarter ever in U.S. education
- Sold 11 million iPods. Up 12% from year ago.
- Great start with iPhone 3G. 22 Countries. 1 millionth iPhone 3G just 3 days after its launch.
- Customer reaction to iPhone 3G overwhelmingly positive.
- App Store: offers more than 900 applications, with 20% free. 90% less than $10.
- Customers loving the App Store. Over 25 million Apps downloaded so far.
- Retail Stores. 476,000 Macs sold. 1/2 were sold to customers new to Mac.
- 216 Stores Worldwide by end of Quarter. Extending international stores. Switzerland and Germany coming.
- Looking forward to 4th Quarter: Great start with iPhone 3G. Expect to sell more iPhones in Q4 than any previous quarter. Due to subscription recording, much of the revenue will be deferred to future quarters. "Future product transition". Can't discuss today.
- More great new products later this year.

Question and Answer Highlights

- International sales growing well. Beijing store doing well already.
- Added 170 Best Buy stores. Total of 570. 600 by end of summer.
- Apple introduces new products that initially cost more because they deliver a new level of value to the customer. Then drive costs down and staying out of reach of our competitors. Apple will follow this plan again in the future.
- Question regarding Steve Jobs' health. Answer: Jobs has no plans to leave Apple. Steve's health is a private matter.
- Apple TV remains a "hobby" because its not a very large business and still continuing to invest in it.
- Stunning response to iPhone 3G. Sold out due to overwhelming demand. Pleased with production ramp. Shipping units as fast as they can. Trying to catch the demand. Confident enough that they will be launching about 20 additional countries on August 22nd. And over 70 countries later this year.
- Apple reiterates they will be delivering state of the art new products at prices their competitors can't match. Very excited about what they have in their new product pipeline.
- Significant interest in Enterprise adoption for the iPhone 3G.
- Looks at App Store like the iTunes Store. Not a huge revenue generator. Instead something to make the iPhone and iPod touch more attractive.
- Welcomes competition from mobile phone companies and believe they are well positioned with the iPhone.

On a side note, you think with THAT much profit they could hire just a few more programmers to get Mobile Me running as advertised.

 

[ViRGE]

It doesn't sound like Steve is doing so well, however.

 

[bignateyk]

Maybe they'll use some of that money to fix the iPhone 3G

 

[zacharace]

Originally posted by: ViRGE
It doesn't sound like Steve is doing so well, however.

Yeah...
Good news otherwise though. This and Apple's huge market share gain in the computer sector, all in the span of a week or so.

 

[manly]

Originally posted by: ViRGE
It doesn't sound like Steve is doing so well, however.

You may be right, but talk about jumping to conclusions!

AAPL is getting hammered today (actually the chart shows it opened down $20 but has been climbing since). Unfortunately, I wouldn't be comfortable reloading unless it dived down towards $100/share.

 

[KeithP]

Apple is getting slammed because they basically said their margins are going to shrink. That, and I think most are interpreting "Steve's health is a private matter" as saying he is ill. I wish Steve the best and I hate to sound like an dick but if you are thinking of buying Apple stock, I would wait until Steve leaves the company for whatever reason.

-KeithP

 

[akshatp]

Can someone explain how they are posting their THIRD QUARTER profits when the 3rd quarter just started 23 days ago and doesnt end until September 30???

And they shipped 11 million more ipods??? Jeez I cant beleive the market isnt saturated with them yet...

 

[ViRGE]

Apple's fiscal quarters are not the same as their calendar quarters. They're a quarter ahead.

 

[manly]

Originally posted by: akshatp
Can someone explain how they are posting their THIRD QUARTER profits when the 3rd quarter just started 23 days ago and doesnt end until September 30???

And they shipped 11 million more ipods??? Jeez I cant beleive the market isnt saturated with them yet...

I know its apple & oranges, but Sony has sold something like 200 million Walkman players over 25 years?

I wouldn't say iPod is truly saturated; but with convergence between DAP & mobile phone handsets, iPod sales have just about plateaued. But if you evaluate iPod sales, Apple doesn't have dominant DAP market share globally (only in the U.S. if I'm not mistaken). iPods' lack of durability or easily removable battery also lead to replacement sales.

Btw, I noticed on Yahoo! Finance that the NY Times reported today on Jobs' health.