Apple profits surge 46% on record sales of 3M Macs, 7.4M iPhones

***AppleInsider*** · 10-19-2009, 04:40 PM

Apple said Monday that fourth-quarter profits rose more than 46 percent to 1.67 billion, or $1.82 per diluted share, on sales of $9.87 billion for the three-month period ended September 26, 2009.

These results compare to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, up from 34.7 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.

Apple sold 3.05 million Macintosh computers during the quarter, representing a 17 percent unit increase over the year-ago quarter. The company also sold 10.2 million iPods during the quarter, representing an eight percent unit decline from the year-ago quarter. Quarterly iPhone sales were 7.4 million, representing seven percent unit growth over the year-ago quarter.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," said Apple chief executive Steve Jobs. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $12.25 billion of "Adjusted Sales" and $2.85 billion of "Adjusted Net Income."

"We are delighted with our September quarter and fiscal 2009 results," said Apple chief financial officer Peter Oppenheimer. "For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times. Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78."

Apple will provide live streaming of its Q4 2009 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT. AppleInsider will provide live coverage.

[ View this article at AppleInsider.com ]

Dr Millmoss · 10-19-2009, 04:50 PM

The market likes it. AAPL up nearly 5% after hours.

jazzguru · 10-19-2009, 04:50 PM

Another "rounding error", Mr. Ballmer?

saarek · 10-19-2009, 04:50 PM

Impressive results as always, I wonder how many Apple TV's were sold.

teckstud · 10-19-2009, 04:50 PM

Dang!

teckstud · 10-19-2009, 04:51 PM

Quote:

Originally Posted by saarek

Impressive results as always, I wonder how many Apple TV's were sold.

Doesn't matter with results like that. Who cares?

studiomusic · 10-19-2009, 04:51 PM

As Strongbad would say... Holy crap!

**melgross** · 10-19-2009, 04:51 PM

Quote:

Originally Posted by AppleInsider

Apple said Monday that fourth-quarter profits rose more than 46 percent to 1.67 billion, or $1.82 per diluted share, on sales of $9.87 billion for the three-month period ended September 26, 2009.

These results compare to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, up from 34.7 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.

Apple sold 3.05 million Macintosh computers during the quarter, representing a 17 percent unit increase over the year-ago quarter. The company also sold 10.2 million iPods during the quarter, representing an eight percent unit decline from the year-ago quarter. Quarterly iPhone sales were 7.4 million, representing seven percent unit growth over the year-ago quarter.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," said Apple chief executive Steve Jobs. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $12.25 billion of "Adjusted Sales" and $2.85 billion of "Adjusted Net Income."

"We are delighted with our September quarter and fiscal 2009 results," said Apple chief financial officer Peter Oppenheimer. "For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times. Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78."

Apple will provide live streaming of its Q4 2009 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT. AppleInsider will provide live coverage.

[ View this article at AppleInsider.com ]

The Mac sales are amazing.

I also wonder how many phones they could have sold if they could keep up with demand, such as in Italy, where the vendor, selling 20,000 a month, said they could have had doubled sales for the period, another 60,000 for the quarter from them alone.

sflocal · 10-19-2009, 04:52 PM

Quote:

Originally Posted by AppleInsider

said Apple chief executive Steve Jobs. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

C'mon Steve, buddy ol' pal??!! Do tell! What's in that pipeline?!

paulhkim · 10-19-2009, 04:53 PM

Who cares? Get onto talking about the new iMacs!!!

teckstud · 10-19-2009, 04:53 PM

Quote:

Originally Posted by sflocal

C'mon Steve, buddy ol' pal??!! Do tell! What's in that pipeline?!

2010? Nothing more for this year? Make it not be true.

Dr Millmoss · 10-19-2009, 04:56 PM

Quote:

Originally Posted by paulhkim

Who cares?

Stockholders?

Quadra 610 · 10-19-2009, 04:57 PM

Record Mac sales. Record everything. But hardly a surprise.

JamesJpn · 10-19-2009, 04:58 PM

Shouldn't this read third quarter profits? What are you going to report about in January, Apple's fifth quarter profits?

Dr Millmoss · 10-19-2009, 04:59 PM

Quote:

Originally Posted by JamesJpn

Shouldn't this read third quarter profits? What are you going to report about in January, Apple's fifth quarter profits?

No, Apple's fiscal year ends in September.

RichL · 10-19-2009, 05:03 PM

Any guesses on what's fueling the increase in mac sales?

iPhone growth is a little disappointing. Smartphones, and especially the iPhone, have grown accustomed to large double digit growth figures. Perhaps it's a wider industry trend though.

Emvee · 10-19-2009, 05:04 PM

I really wonder what a "very strong lineup for the holiday season" is or will be!

teckstud · 10-19-2009, 05:05 PM

Quote:

Originally Posted by paulhkim

Who cares? Get onto talking about the new iMacs!!!

Sometimes it does seem more like AppleStockholdersInsider around here but we won't hold it against them.

They're fine for the most part until they get obnoxious and can't comprehend anything from a consumers point of view.

solipsism · 10-19-2009, 05:06 PM

Quote:

Originally Posted by Dr Millmoss

The market likes it. AAPL up nearly 5% after hours.

It topped 7% ($203.xx)

• http://www.google.com/finance?q=aapl

Quote:

Originally Posted by melgross

The Mac sales are amazing.

I also wonder how many phones they could have sold if they could keep up with demand, such as in Italy, where the vendor, selling 20,000 a month, said they could have had doubled sales for the period, another 60,000 for the quarter from them alone.

17% increase in Mac sales is great, but I was surprised that the iPhone sales were only up 7%. I hadn’t realized they had supply issues.

teckstud · 10-19-2009, 05:06 PM

Quote:

Originally Posted by Emvee

I really wonder what a "very strong lineup for the holiday season" is or will be!

Go to the Apple Store and that appears to be it. The holiday season really began Oct 1st for retail so I don't know why they would release anything more so late at this point.

teckstud · 10-19-2009, 05:07 PM

Quote:

Originally Posted by solipsism

17% increase in Mac sales is great, but I was surprised that the iPhone sales were only up 7%. I hadn’t realized they had supply issues.

?? Don't you READ the AppleInsider rather than post?

jazzguru · 10-19-2009, 05:08 PM

Quote:

Originally Posted by RichL

Any guesses on what's fueling the increase in mac sales?

I think more people are looking for long-term value, reliability, and lower total cost of ownership.

Personally, I'm willing to pay more up front for a computer that will save me time and money (and headaches) long-term.

plovell · 10-19-2009, 05:08 PM

Hhmmm. Predicts EPS for the Christmas quarter to be *lower* than the one just past. Really? REALLY ???

Oh wait, maybe he's adjusting for the huge Win 7 uptake <sarcasm/>

Zoolook · 10-19-2009, 05:09 PM

Very impressive - not just the numbers, but the margin. Who wants to sell 20 million computers a quarter with a 2% margin when you can do this.

teckstud · 10-19-2009, 05:10 PM

Quote:

Originally Posted by RichL

Any guesses on what's fueling the increase in mac sales?

Quote:

Originally Posted by jazzguru

I think more people are looking for long-term value, reliability, and lower total cost of ownership.

Personally, I'm willing to pay more up front for a computer that will save me time and money (and headaches) long-term.

More like new MacBook pros were recently released?
Return of Matte - 15"!!!

Return of Firewire on the 13"

Cranky · 10-19-2009, 05:11 PM

Quote:

Originally Posted by teckstud

2010? Nothing more for this year? Make it not be true.

Fiscal 2009 ended in September. Fiscal 2010 is already upon us. Do you honestly think that SJ would pass up all that Christmas loot and wait until January 2010 to release the new iMacs?

Gazoobee · 10-19-2009, 05:13 PM

Quote:

Originally Posted by melgross

The Mac sales are amazing.

I also wonder how many phones they could have sold if they could keep up with demand, such as in Italy, where the vendor, selling 20,000 a month, said they could have had doubled sales for the period, another 60,000 for the quarter from them alone.

I agree.

It's funny how the media loves to jump all over Apple when they make a mistake, but this really quite dramatic shortage problem they have been having has been almost swept under the rug. It is at best, under-reported.

Apple did a kind of dastardly thing here. They made sure that the USA had stock of the 3Gs and a few other places, and then screwed over everyone else royally. I find it ironic and dumb that almost no US coverage has been given to this huge failure on Apple's part, just because Apple made sure that the US reviewers and customers all got their phones?!

Are analysts really that dumb? Apple also wins awards for their supply chain handling fairly regularly, so it's a great little story that they have screwed up so bad on the 3Gs.

The US based tech analysts should lift up there heads once in a while and look at the rest of the world. There has been close to zero stock of the iPhone 3Gs in Canada, Australia, and a lot of other countries all year long. I, and a lot of people who were champing at the bit to get one in August, have already given up and are waiting for the next model (and for Apple's supply chain issues to sort themselves out).

There must have been an absolutely huge number of lost sales world-wide due to these shortages and other supply chain screwups.

teckstud · 10-19-2009, 05:13 PM

Quote:

Originally Posted by Cranky

Fiscal 2009 ended in September. Fiscal 2010 is already upon us. Do you honestly think that SJ would pass up all that Christmas loot and wait until January 2010 to release the new iMacs?

Funny- did he say Fiscal 2010? Did I miss that? It reads like he's implying the holiday season and 2010 are 2 different things. He would have stated Fiscal 2010 including holiday season if your interpretation is to be valid.

justflybob · 10-19-2009, 05:14 PM

Quote:

Originally Posted by Zoolook

Very impressive - not just the numbers, but the margin. Who wants to sell 20 million computers a quarter with a 2% margin when you can do this.

That does seem to be the exact point that is often missing when folks go toe-to-toe on market share, etc.

Earning more for selling less always made my accountant and banker happy.

Dr Millmoss · 10-19-2009, 05:15 PM

Quote:

Originally Posted by solipsism

It topped 7% ($203.xx)

Yup, I know. That of course was only as I posted. This is after hours trading though, so we'll see how much of it sticks at the opening tomorrow. FWIW, the highest previous close for AAPL was 199.83 on December 28, 2007.

Wiggin · 10-19-2009, 05:21 PM

Quote:

Originally Posted by RichL

Any guesses on what's fueling the increase in mac sales?

There was that price cut in Mac prices. When was that, just before this last quarter started? I'm sure that helped, and it certainly doesn't seem to be hurting their margins any.

solipsism · 10-19-2009, 05:23 PM

Quote:

Originally Posted by Dr Millmoss

Yup, I know. That of course was only as I posted. This is after hours trading though, so we'll see how much of it sticks at the opening tomorrow. FWIW, the highest previous close for AAPL was 199.83 on December 28, 2007.

Yeah, it’s a bit of an empty victory to look at after hours trading, but often the stock was dropping after the announcement despite record sales. "Buy on rumour, sell on fact” was in effect. Perhaps Apple will announce a Mac Special Event on Thursday for next Tuesday. A little late, but with Win7 dropping perhaps waiting until right afterward its release is the best move. Seems like a good time to release a new product, not just updated product.

Garamond · 10-19-2009, 05:25 PM

Apple is doomed!

mdriftmeyer · 10-19-2009, 05:26 PM

Quote:

Originally Posted by Dr Millmoss

Stockholders?

Raises hand over here.

AdamIIGS · 10-19-2009, 05:32 PM

Quote:

Originally Posted by mdriftmeyer

Raises hand over here.

I have 200 shares bought at 12.+ the day before the macworld expo when microsoft announced their $400mm dollar investment / settlement with apple, that day the stock passed 30, I still have those shares .. now split

I'm a happy boy.

Gazoobee · 10-19-2009, 05:34 PM

Quote:

Originally Posted by teckstud

2010? Nothing more for this year? Make it not be true.

You misinterpreted the article.

Steve said they have a great holiday season line-up. That could easily contain new products. Nothing new in "fiscal year 2009" (because it's already over for them), but still possibly new products in the actual year of 2009.

He also mentions new products in 2010, but a reductionist/absolutist like yourself probably reads that as the reverse (no new products in 2009), when in fact, one doesn't exclude the other.

**melgross** · 10-19-2009, 05:37 PM

Quote:

Originally Posted by RichL

Any guesses on what's fueling the increase in mac sales?

iPhone growth is a little disappointing. Smartphones, and especially the iPhone, have grown accustomed to large double digit growth figures. Perhaps it's a wider industry trend though.

Apple has had shortages in iPhones in a number of countries this past quarter, which in the conference call, going on now, they said was only relieved in September-October.

So they could possibly have sold 7.750,000 phones if that were not the case.

But it could lead to pent up demand that will be relieved the December quarter, which we're in now.

**melgross** · 10-19-2009, 05:39 PM

Quote:

Originally Posted by teckstud

Sometimes it does seem more like AppleStockholdersInsider around here but we won't hold it against them.

They're fine for the most part until they get obnoxious and can't comprehend anything from a consumers point of view.

Well, it's both.

More consumers are pleased with the products, which results in rising sales and stock prices.

What's the problem?

**melgross** · 10-19-2009, 05:39 PM

Quote:

Originally Posted by solipsism

17% increase in Mac sales is great, but I was surprised that the iPhone sales were only up 7%. I hadn’t realized they had supply issues.

In a number of countries.

Zoolook · 10-19-2009, 05:40 PM

Quote:

Originally Posted by Gazoobee

You misinterpreted the article.

Steve said they have a great holiday season line-up. That could easily contain new products. Nothing new in "fiscal year 2009" (because it's already over for them), but still possibly new products in the actual year of 2009.

He also mentions new products in 2010, but a reductionist/absolutist like yourself probably reads that as the reverse (no new products in 2009), when in fact, one doesn't exclude the other.

To be fair, most people don't make comments about product releases in terms of fiscal years - and Steve's sentences were quite clearly delineating between the holiday season lineup and the 2010 lineup.

It's reasonable to interpret that as very likely meaning; no new products in the calendar year of 2009.

10-19-2009, 04:40 PM	#1
*AppleInsider* Kasper's Automated Slave Join Date: Nov 1997 Posts: 6,151	Apple profits surge 46% on record sales of 3M Macs, 7.4M iPhones Apple said Monday that fourth-quarter profits rose more than 46 percent to 1.67 billion, or $1.82 per diluted share, on sales of $9.87 billion for the three-month period ended September 26, 2009. These results compare to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, up from 34.7 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue. Apple sold 3.05 million Macintosh computers during the quarter, representing a 17 percent unit increase over the year-ago quarter. The company also sold 10.2 million iPods during the quarter, representing an eight percent unit decline from the year-ago quarter. Quarterly iPhone sales were 7.4 million, representing seven percent unit growth over the year-ago quarter. "We are thrilled to have sold more Macs and iPhones than in any previous quarter," said Apple chief executive Steve Jobs. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010." In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $12.25 billion of "Adjusted Sales" and $2.85 billion of "Adjusted Net Income." "We are delighted with our September quarter and fiscal 2009 results," said Apple chief financial officer Peter Oppenheimer. "For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times. Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78." Apple will provide live streaming of its Q4 2009 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT. AppleInsider will provide live coverage. [ View this article at AppleInsider.com ]

10-19-2009, 04:50 PM	#2
Dr Millmoss Registered User Join Date: Apr 2009 Posts: 1,243	The market likes it. AAPL up nearly 5% after hours. What have you done with...

10-19-2009, 04:50 PM	#3
jazzguru Registered User Join Date: Mar 2009 Location: Oblivion Posts: 1,408	Another "rounding error", Mr. Ballmer? "Revolutionary means you ship and then test... Lots of things made the first Mac in 1984 a piece of crap - but it was a revolutionary piece of crap." -Guy Kawasaki 20" iMac G5 1.8GHz - 5 years old and still revolutionary

10-19-2009, 04:50 PM	#4
saarek Registered User Join Date: Sep 2008 Location: UK Posts: 97	Good results Impressive results as always, I wonder how many Apple TV's were sold. iMac, Macbook, iPhone, heck I even have iLife! :-)

10-19-2009, 04:50 PM	#5
teckstud Registered User Join Date: Oct 2007 Posts: 6,115	Dang! Once you go Mac, you never go back!

10-19-2009, 04:51 PM	#7
studiomusic Registered User Join Date: Feb 2007 Posts: 132	As Strongbad would say... Holy crap!

10-19-2009, 04:53 PM	#10
paulhkim Registered User Join Date: Jan 2008 Posts: 4	Who cares? Who cares? Get onto talking about the new iMacs!!!

10-19-2009, 04:57 PM	#13
Quadra 610 Registered User Join Date: Nov 2008 Posts: 2,056	Record Mac sales. Record everything. But hardly a surprise. (Formerly LTD on Neowin.net) (currently *LTD* on Macrumors.com) Mac OS users have made a conscious technology choice and are therefore typically better informed than their peers. -- Paul Thurrott, winsupersite.com, December 06, 2004

10-19-2009, 04:58 PM	#14
JamesJpn Registered User Join Date: Jun 2009 Location: Seattle, WA Posts: 3	Shouldn't this read third quarter profits? What are you going to report about in January, Apple's fifth quarter profits?

10-19-2009, 05:03 PM	#16
RichL Registered User Join Date: Dec 2007 Location: UK Posts: 330	Any guesses on what's fueling the increase in mac sales? iPhone growth is a little disappointing. Smartphones, and especially the iPhone, have grown accustomed to large double digit growth figures. Perhaps it's a wider industry trend though.

10-19-2009, 05:04 PM	#17
Emvee Registered User Join Date: Sep 2009 Posts: 17	I really wonder what a "very strong lineup for the holiday season" is or will be!

10-19-2009, 05:08 PM	#23
plovell Registered User Join Date: Feb 2009 Posts: 17	lowball for Q1 Hhmmm. Predicts EPS for the Christmas quarter to be lower than the one just past. Really? REALLY ??? Oh wait, maybe he's adjusting for the huge Win 7 uptake <sarcasm/>

10-19-2009, 05:09 PM	#24
Zoolook Registered User Join Date: Nov 2008 Location: Brooklyn, NY Posts: 222	Very impressive - not just the numbers, but the margin. Who wants to sell 20 million computers a quarter with a 2% margin when you can do this. Do not overrate what you have received, nor envy others.

10-19-2009, 05:25 PM	#33
Garamond Registered User Join Date: Jun 2005 Posts: 16	Apple is doomed! - Get a Life. Get a Mac.

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