Apples Profits Surge 70% on iPhone

[James Bond]

http://www.pcmag.com/article2/0,2817,2371042,00.asp

Apple continued to steamroll ahead, posting its highest revenue and after-tax earnings ever, boosted by record Mac, iPhone, and iPad sales.

Apple reported profits of $4.31 billion on revenue of $20.34 billion, compared to a net profit of $2.53 billion on revenue of $12.21 billion for the same quarter a year ago.

In July, Apple reported a net profit of $3.25 billion on revenue of $15.7 billion, both of which shot up dramatically from a year ago, when Apple reported profits of $1.83 billion on revenue of $9.73 billion. Analysts only expected Apple to report $14.62 million in revenue.

Apple sold a record 3.89 million Macintosh computers for the quarter, up by 27 percent versus a year ago, and iPhone sales increased by 91 percent compared to a year ago to 14.1 million units. Apple sold 9.05 million iPods during the quarter, an 11 percent decline.

The iPad continued to amaze, selling 4.19 million units, versus 3.27 million a quarter ago. Within the last two weeks, Verizon announced that it would sell the iPad, as did AT&T, to business customers, as well as Wal-Mart and Sam's Club.

"We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings—both all-time records for Apple," said Steve Jobs, Apple's chief executive, in a statement. "iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year."

Last week, IDC said that Apple was once again the third-ranked PC vendor in the PC market, although rival Gartner placed them fourth.

Apple is scheduled to host a media event on Wednesday, where the company is expected to announce the next version of its operating system, "Lion," and show off new Macs as well. (Here are ten things Apple should announce.)

 

[amdhunter]

*yawn*

 

[The Boston Dangler]

let me know when they have a computer i want to buy

 

[spidey07]

That is one hell of a healthy humongous profit margin.

 

[aphex]

That is one hell of a healthy humongous profit margin.

Indeed.

 

[xSauronx]

That is one hell of a healthy humongous profit margin.

http://www.pcworld.com/article/188196/apples_ipad_profit_breaking_it_down.html

Because that model will sell for $499, Apple's profit margin is 42.9% after the $20 warranty set-aside is factored in.

As a hardware expert pointed out Wednesday, the iPad that can connect to the Internet via a 3G data network is even more profitable , since Apple adds a $130 surcharge for those tablets but incurs a very small hardware cost to add 3G.

By Marshall's estimate, the $629 16GB iPad with WiFi and 3G costs Apple $306.50, just $16 more than the WiFi-only model, giving the company a profit margin of 52%, a jump of nine percentage points.

not sure how accurate it is, but if its even close id almost call it obscene. but hey...people are willing to pay for it; cant really apple for taking their money
/not one of those people

 

[mmntech]

Everyone knows Apple overcharges for their products, and yes I do have a few. I'd say what's impressive is how recession-proof they are, especially with the US economy still tanking. That bubble has to burst at some point though.

 

[Eug]

AAPL down 6% in after hours trading, on lower than expected iPad sales.

 

[Fingolfin269]

Yep it looks like the iPad was the only bad thing on the report but it did miss analyst expectations by quite a large amount. Then again, as Jobs pointed out, this is a source of revenue that did not exist for the company last year. 4m+ units sold isn't too shabby.

 

[intogamer]

iOS 4.2 will keep the iPad afloat

 

[tokie]

I just can't understand several things about this. I'm going to believe those cost estimates for the iPad, which means that Apple is making a ~50% profit margin on them.

My disbelief is the fact that Samsung is charging more for their tablet (with a smaller profit margin), yet Samsung is the one who Apple gets a lot of their supplies from. How can they supply things like NAND etc at lower prices for Apple relative to themselves?

 

[Eug]

Yep it looks like the iPad was the only bad thing on the report but it did miss analyst expectations by quite a large amount. Then again, as Jobs pointed out, this is a source of revenue that did not exist for the company last year. 4m+ units sold isn't too shabby.

Guidance didn't impress either. People were expecting well over $5, but it was well below $5.

I just can't understand several things about this. I'm going to believe those cost estimates for the iPad, which means that Apple is making a ~50% profit margin on them.

My disbelief is the fact that Samsung is charging more for their tablet (with a smaller profit margin), yet Samsung is the one who Apple gets a lot of their supplies from. How can they supply things like NAND etc at lower prices for Apple relative to themselves?

Not just NAND, but remember that these NAND contracts are solidified long before anything is shipped, and Apple is probably the biggest buyer of NAND for consumer products in the world. Can't overcharge your biggest customer and expect them to stick with you.

Also, Apple designed the A4 (which is based off Cortex), so it's partially in-house. I wonder if that helps.

 

[intogamer]

I just can't understand several things about this. I'm going to believe those cost estimates for the iPad, which means that Apple is making a ~50% profit margin on them.

My disbelief is the fact that Samsung is charging more for their tablet (with a smaller profit margin), yet Samsung is the one who Apple gets a lot of their supplies from. How can they supply things like NAND etc at lower prices for Apple relative to themselves?

Gene Munster says the iPad doesn't carry a high profit margin as other analysts think.

 

[spidey07]

I just can't understand several things about this. I'm going to believe those cost estimates for the iPad, which means that Apple is making a ~50% profit margin on them.

My disbelief is the fact that Samsung is charging more for their tablet (with a smaller profit margin), yet Samsung is the one who Apple gets a lot of their supplies from. How can they supply things like NAND etc at lower prices for Apple relative to themselves?

Market Share and marketing. Samsung has many, many low if non existent profit/commodity products which is their entire bread and butter.

Apple's got the marketing. You geeks like to make fun of marketing folks, but the results speak for themselves.