Apple posts profit of 1.05B, ships nearly 2.3 million Macs

[AppleInsider]

Apple said Wednesday that second-quarter profits rose over 36 percent to $1.05 billion, or $1.16 per diluted share, on sales of $7.51 billion for the three-month period ended March 29, 2008.

These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter, and international sales accounted for 44 percent of the quarter's revenue.

Apple shipped 2,289,000 Macintosh computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The company also sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter.

Quarterly iPhone sales were 1,703,000.

"We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Apple chief executive Steve Jobs. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."

"We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion," added Apple chief financial officer Peter Oppenheimer. "Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00."

Apple will conduct its Q2 2008 financial results conference call in about 30 minutes -- AppleInsider will provide full coverage.

[ View this article at AppleInsider.com ]

[dreamraj]

Pretty good!! Will add to my position.

[Cory Bauer]

Strongest March Quarter in Apple's history? Watch the stock tank.

[mAc-warrior]

2.3M Macs is astonishing compared to what they were selling two years ago. I remember when 1.0M was crazy. We are witnessing the resurgence everyone, right now.

I just hope all the idiot analysts soon realize that the real numbers that Apple announces on earnings days are the Mac numbers, not the iPod/iPhone numbers.

--mAc

[melgross]

Well, well, well!

[VisualZone]

Originally Posted by AppleInsider

Apple said Wednesday that second-quarter profits rose over 36 percent to $1.05 billion, or $1.16 per diluted share, on sales of $7.51 billion for the three-month period ended March 29, 2008.

These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter, and international sales accounted for 44 percent of the quarter's revenue.

Apple shipped 2,289,000 Macintosh computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The company also sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter.

Quarterly iPhone sales were 1,703,000.

"We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Apple chief executive Steve Jobs. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."

"We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion," added Apple chief financial officer Peter Oppenheimer. "Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00."

Apple will conduct its Q2 2008 financial results conference call in about 30 minutes -- AppleInsider will provide full coverage.

[ View this article at AppleInsider.com ]

Terrific new products? There, Jobs said it again. Hmm, very interested.

[Lorre]

OMGZ only 1.7million iPhones, let's watch the stock go below $100!

Damn good quarter though, considering current state of the economy.

[NasserAE]

Originally Posted by Lorre

OMGZ only 1.7million iPhones, let's watch the stock go below $100!

Damn good quarter though, considering current state of the economy.

Thats only for up to March 6th. They are not counting iPhone sales between March 6th and 29th.

[Mr. H]

Originally Posted by AppleInsider

"We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion,"

Excellent. Maybe they really are saving up to buy Adobe! Adobe market cap = $19.59 billion right now according to yahoo finance.

[lkrupp]

So Apple is still a computer company after all. I am pleased to know that.

[addabox]

Originally Posted by VisualZone

Terrific new products? There, Jobs said it again. Hmm, very interested.

He says that every conference call. And, indeed, Apple invariably introduces new products "in the quarters to come."

[Mr. H]

Originally Posted by addabox

He says that every conference call. And, indeed, Apple invariably introduces new products "in the quarters to come."

I look forward to the day when people stop posting things like:

"OMFG! Steve Jobs said Apple are working on AMAZING products!!! OMFG! They must be incredible!"

Come on people, they say it every single conference call/earnings announcement. Apple are hardly going to say "yeah, we're working on some middling/mediocre stuff right now"

[melgross]

Originally Posted by NasserAE

Thats only for up to March 6th. They are not counting iPhone sales between March 6th and 29th.

They're counting sales. They're not counting income, and perhaps, revenue. That wasn't too clear, as I didn't listen to the actual call this time.

[melgross]

Originally Posted by Mr. H

I look forward to the day when people stop posting things like:

"OMFG! Steve Jobs said Apple are working on AMAZING products!!! OMFG! They must be incredible!"

Come on people, they say it every single conference call/earnings announcement. Apple are hardly going to say "yeah, we're working on some middling/mediocre stuff right now"

Oh, come on H, we all know they'll be incredible. Amazing too! Even.

[Bageljoey]

Originally Posted by Mr. H

"OMFG! Steve Jobs said Apple are working on AMAZING products!!! OMFG! They must be incredible!"

Whooo Hooo! Thanks for the tip!

[Mr. H]

Originally Posted by melgross

Oh, come on H, we all know they'll be incredible. Amazing too! Even.

That's my point.

Some people seem to think that because the mighty Steve said the forthcoming products are amazing, they must be off-the-charts-pant-wettingly-mind-blowing. But that's not the case. Apple are always working on new products; they are always better than what Apple currently offer; Steve will always call Apple's product pipeline "amazing" or something to similar effect. Given that he unsurprisingly says that every 3 months, it's not something to get excited about.

If he said something much more specific like "we are working on a brand-new product for a brand-new product category and the last time I saw it I had to lie down afterwards for thirty minutes because it was so awesome", now that would be something to get excited about.

[markspain]

Originally Posted by Mr. H

Apple are always working on ...
... better than what Apple currently offer ...

Good grief. You mean that, in the UK, you use the word "Apple" as a plural noun?
Sure sounds strange on this side of the Atlantic.

[Mr. H]

Originally Posted by markspain

Good grief. You mean that, in the UK, you use the word "Apple" as a plural noun?
Sure sounds strange on this side of the Atlantic.

I guess "Apple is" would be better. My proof reading does get worse when I'm three hours past my bedtime. But you could argue that "Apple" can refer to Apple the entity/company, or Apple, the collection of its employees. I believe in the latter case that makes it a plural noun, but like I said I'm pretty tired so I could be writing nonsense.

[MacTel]

Wow, I was right that they would be at 2.3 million Macs sold. This quarter we'll see 2.6 to 2.8 million.

[delreyjones]

Originally Posted by Mr. H

That's my point.

Some people seem to think that because the mighty Steve said the forthcoming products are amazing, they must be off-the-charts-pant-wettingly-mind-blowing. But that's not the case. Apple are always working on new products; they are always better than what Apple currently offer; Steve will always call Apple's product pipeline "amazing" or something to similar effect. Given that he unsurprisingly says that every 3 months, it's not something to get excited about.

If he said something much more specific like "we are working on a brand-new product for a brand-new product category and the last time I saw it I had to lie down afterwards for thirty minutes because it was so awesome", now that would be something to get excited about.

Perhaps some of us on this side of the Atlantic are simple and childlike, but I myself frequently get excited in the morning just by the prospect of sunrise and a fresh cup of coffee. My beagle always gets excited at the prospect of dry kibble, and I always get excited by new Apple products and Steve Jobs' genuine, contagious enthusiasm.

[Mr. H]

Originally Posted by delreyjones

Perhaps some of us on this side of the Atlantic are simple and childlike, but I myself frequently get excited in the morning just by the prospect of sunrise and a fresh cup of coffee. My beagle always gets excited at the prospect of dry kibble, and I always get excited by new Apple products and Steve Jobs' genuine, contagious enthusiasm.

Don't get me wrong, I'm as excited as the next Apple fan to see Apple's forthcoming products, I'm just saying that there's no reason to get extra excited when Steve confirms what we already know.

[quinney]

Originally Posted by delreyjones

... I myself frequently get excited in the morning...

me too

[solipsism]

Originally Posted by lkrupp

So Apple is still a computer company after all. I am pleased to know that.

They always have been. Everything they have done has increased Mac sales.

Originally Posted by markspain

Good grief. You mean that, in the UK, you use the word "Apple" as a plural noun?
Sure sounds strange on this side of the Atlantic.

It may sound strange to Americans, but it's the correct nomenclature for British English.

[NasserAE]

Originally Posted by melgross

They're counting sales. They're not counting income, and perhaps, revenue. That wasn't too clear, as I didn't listen to the actual call this time.

I was sure that they said that they are reporting iPhone expenses and revenue sharing for the whole quarter but no revenues from March 6th. It is confusing, why report number of iPhones sold but not revenues?! If I remember correctly (someone can verify it please) they were asked during the call if the 1.7 mil iPhones were only for the period ending March 6th and they said yes. Not 100% sure.

Nevermind, just checked. It is 1.7 mil for the whole quarter

[teckstud]

Originally Posted by solipsism

. Everything they have done has increased Mac sales.

I'm sorry, but that's a bit outrageous. You can't directly correlate everything they have done to the increase in Mac sales. Come on, did the $19.99 charge for 5 apps on the iPodTouch increase Mac sales? Put down the Kool aid please. I think of you as a person of reason .

[solipsism]

Originally Posted by teckstud

I'm sorry, but that's a bit outrageous. You can't directly correlate everything they have done to the increase in Mac sales. Come on, did the $19.99 charge for 5 apps on the iPodTouch increase Mac sales? Put down the Kool aid please. I think of you as a person of reason .

I was implying the iPod and iPhone increase Mac sales. The "halo effect" as people like to call it. Since lkrupp's comment parrots those who say Apple is no longer interested in making macs, only with handheld devices. Their fears were then compounded when Apple drops Computer from it's name. But that simply isn't true.

One could easily argue that supplying new SW—free or otherwise—to their PMPs will increase its sales, and lead to more switchers to Mac. Truth is, one should never use an absolute.

[JeffDM]

There was one forum member that was really pushing hard on the idea that only 1M iphones would be sold this last quarter.

Anyway, it's all looking pretty good, maybe a bit ahead of the average of the analyst expectations on several items. Still growing on ipods, but not as much as they used to.

[Bageljoey]

Originally Posted by solipsism

Truth is, one should never use an absolute.

You are completely right!

[Walter Slocombe]

absolutely stunned (but not actually that surprised) to hear on the radio this morning about Apples gains in Mac sales, but that "its not good, they (Apple) arn't actually doing that well"

I kid you not, out perform the market with the highest margins for a computer hardware company and you are in trouble! no wonder there's a world recession

[Bageljoey]

Originally Posted by Walter Slocombe

absolutely stunned (but not actually that surprised) to hear on the radio this morning about Apples gains in Mac sales, but that "its not good, they (Apple) arn't actually doing that well"

I kid you not, out perform the market with the highest margins for a computer hardware company and you are in trouble! no wonder there's a world recession

What program was it, I wonder. I heard a rather complementary piece on NPR's Marketplace Morning Report (here in the US). The gist was that they had record profits even in the slowing economy and that iPod sales beat expectation. The negative was that Apple's own guidance for the next quarter was disappointing, but they allowed that Apple is usually conservative in that arena anyway...

[pairof9s]

Sell! Sell! Sell! Sell! Sell! Sell! Sell! Sell!

OMG, Apple made a profit and expects a flat next qtr!

Sell! Sell! Sell! Sell! Sell! Sell! Sell! Sell! Sell!

I'll take $75 for my shares...the sky is falling... I need to find a tall building or bridge.


Aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaagh!!!!!!!


(Well, at least my iPod doesn't use PlaysForSure music.)

/

[solipsism]

So far Apple is up a few points in pre-market trading.

[melgross]

Originally Posted by Bageljoey

What program was it, I wonder. I heard a rather complementary piece on NPR's Marketplace Morning Report (here in the US). The gist was that they had record profits even in the slowing economy and that iPod sales beat expectation. The negative was that Apple's own guidance for the next quarter was disappointing, but they allowed that Apple is usually conservative in that arena anyway...

Last night, even the ticker on CNN had several lines about Apple's sales. That surprised me!