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Apple profits soar 95% on 18.65M iPhones, 4.69M iPads and 3.76M Macs

post #1 of 97
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Apple said Wednesday that second-quarter profits rose nearly 95 percent to $5.99 billion, or $6.40 per diluted share, on record iPhone and non-holiday quarter sales of $24.67 billion for the three-month period ended March*26, 2011.

The results compare to revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, in the year-ago quarter. Gross margin was 41.4 percent compared to 41.7 percent in the year-ago quarter, And international sales accounted for 59 percent of revenue.

“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Apple Chief Executive Steve Jobs. “We will continue to innovate on all fronts throughout the remainder of the year.”

Apple sold 3.76 million Macs during the quarter, a 28 percent unit increase over the year-ago quarter, and just 400,000 units shy of last quarter's all time best. However, the 18.65 million iPhones sold by the Cupertino-based company represented the handset's best three-month stretch yet, growing sales at 113% and handily topping last quarter's benchmark of 16.2 million units.

Meanwhile, iPods continued to wan, with Apple shipping just 9.02 million units, representing a 17 percent unit decline from the year-ago quarter. And despite all the buzz surrounding Apple's second-generation iPad which launched during the quarter, combined sales of first and second gene units came to just 4.69 million as the company battled supply constraints through the better part of the quarter.

On average, analyst on Wall Street had been modeling the company to earn $5.35 per share on revenues of $23.26 billion, fueled by a gross margin of 39.1% on sales of 3.6 million Macs, 16.6 million iPhones, 10 million iPods and 6.2M iPads.

“We are extremely pleased with our record March quarter revenue and earnings and cash flow from operations of over $6.2 billion,” said Apple Chief Financial Officer Peter Oppenheimer. “Looking ahead to the third fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $5.03.”

Apple will provide live streaming of its Q2 2011 financial results conference call beginning at 5:00 pm. AppleInsider will provide full coverage.
post #2 of 97
Apple continues to serially violate the law of large numbers.

Here is a summary of analyst estimates, for anyone who is interested.
post #3 of 97
Quote:
Originally Posted by AppleInsider View Post

Apple said Wednesday that second-quarter profits rose nearly 95 percent to $5.99 billion, or $6.40 per diluted share, on record non-holiday quarter sales of $24.67 billion for the three-month period ended March*26, 2011.

As I've said so many times before, imagine what their numbers would have been if we were living in a good economy.
post #4 of 97
Beat consensus EPS by 19%. Massive.

Waiting for investors to care.
Please don't be insane.
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post #5 of 97
They just crushed it.

Stock is up $9 in after-hours trading about $350 a share.
post #6 of 97
Quote:
Originally Posted by cvaldes1831 View Post

They just crushed it.

Stock is already up $10 in after-hours trading.

only up $10 in AH =/ will wait for the earnings call hopefully to see more movement
post #7 of 97
Numbers look great to me but I wonder how the street will view them.

The iPad number isn't astronomically high so some analysts may fret over this.
post #8 of 97
And today AAPL does the most modest gain in comparison to the majority of tech-companies... I'm afraid this will mean a new downfall in stock value. Go figure?
post #9 of 97
After-hours trading is thin and a notoriously poor indicator of a stock's direction. We'll know tomorrow if the news holds up. It would be great if AAPL could catch up the rest of the market.
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post #10 of 97
Quote:
Originally Posted by backtomac View Post

Numbers look great to me but I wonder how the street will view them.

The iPad number isn't astronomically high so some analysts may fret over this.

I want to see what Apple says about this.

It seems likely its a supply constraint. This will be worrisome for shareholders, especially combined with the problems in Japan. Would like to know what steps Apple is taking to address the persistent supply problems with the iPad.
post #11 of 97
Poor beleaguered Apple.

Back when Apple was hovering around $11-12/share (before the split), I was telling all my friends to buy some Apple stock because of the potential of the iPod.

Not one person followed my advice. Several even assured me that Apple would be out of business "within five years, tops" because of Microsoft's "Longhorn" OS.

Even my own father decided to buy Microsoft stock instead because the experts told him Microsoft was about to boom again and Apple was about to go under.

post #12 of 97
Just checked after-market and AAPL is up 2.42% and climbing. 56 pages of after hours trades at NASDAQ - just for AAPL.
post #13 of 97
After hours trading is not a useful barometer of anything unless you are buying and selling in the after market. The question is, where will we open tomorrow and where will we be at the close. Even after a blowout quarter we are still not at an all-time high. Some of that has to do with the NASDAQ re-weighting, but that does not really matter to anybody who bought north of $355 at the moment.

I am just glad to hear Steve Jobs say they are going to continue introducing innovative products through the year.
post #14 of 97
This is incredible news especially if you believe a second of what the Android cult is flapping about. To each his or her own but Apple is doing a lot of things right with it's iOS platform and shipping products. Well done Steve and company.
post #15 of 97
The iPad numbers were below most expectations - lets see if they explain it as a collapse in iPad1 and contraint in iPad 2
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post #16 of 97
Why are the results always declared at the end of the day?
post #17 of 97
Well, I wasn't far off in my guesses. Remember this thread?

http://forums.appleinsider.com/showt...hreadid=122499
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post #18 of 97
I am surprised that iPhone is (supposedly) dropping worldwide market share as iPhones are up 110%. Thats surely bigger than the market.
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post #19 of 97
Quote:
Originally Posted by neiltc13 View Post

Why are the results always declared at the end of the day?

To stop panic in the market.
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post #20 of 97
IDC predicts 74% in smartphone market - iPhone must be beating the market then.
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post #21 of 97
Quote:
Originally Posted by David Scubadiver View Post

After hours trading is not a useful barometer of anything unless you are buying and selling in the after market. The question is, where will we open tomorrow and where will we be at the close. Even after a blowout quarter we are still not at an all-time high. Some of that has to do with the NASDAQ re-weighting, but that does not really matter to anybody who bought north of $355 at the moment.

AAPL has been underperforming the broader markets for several months now. The re-weighting of the index just iced the cake.

Quote:
Originally Posted by neiltc13 View Post

Why are the results always declared at the end of the day?

Earnings announcements are always made after the stock markets are closed.
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post #22 of 97
Quote:
Originally Posted by neiltc13 View Post

Why are the results always declared at the end of the day?

They wait until the US stock market closes for the day. It's common practice.
post #23 of 97
So we can pretty much guess Verizon's iPhone sales from all these numbers, right?

18.65 mils of iPhone sold last quarter. 41% of total sales profit from U.S. (assuming total Mac sales profit is lot smaller than total iPhone sales). 3.6 mils of iPhone activated by AT&T. So the math goes like (18.65 * 0.41) - 3.6 = 4.04 mils.

If its not over 4mils I do believe Vzw will have roughly the same iphone activation number comparing to AT&T
post #24 of 97
"According to a study by the International Data Corporation (IDC), the worldwide smartphone market is expected to grow by 49.2% in the year 2011. In 2010, venders shipped 303.4 million smartphones, and that number is expected to climb to over 450 million this year."

Extrapolating from the past two quarters, and assuming a launch of the new iPhone by Sept., I'd guess perhaps 90 million iPhones to be sold in calendar year 2011? If so that would be about 20% of the total volume predicted by IDC. Not bad for one company.

Then again we are talking about a projection
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post #25 of 97
I am no expert with tech companies but a 24.8 percent net profit margin looks pretty amazing. That's usually the EBITDA margin! Lol
post #26 of 97
Quote:
Originally Posted by Gatorguy View Post

"According to a study by the International Data Corporation (IDC), the worldwide smartphone market is expected to grow by 49.2% in the year 2011. In 2010, venders shipped 303.4 million smartphones, and that number is expected to climb to over 450 million this year."

Extrapolating from the past two quarters, and assuming a launch of the new iPhone by Sept., I'd guess perhaps 90 million iPhones to be sold in calendar year 2011? If so that would be about 20% of the total volume predicted by IDC. Not bad for one company.

Then again we are talking about a projection

They could do much better than that . Assume 110% growth throughout the year and you get much higher. December would be 32 million alone. I would see 100-110 M. With cheaper models they would be much higher.
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post #27 of 97
Another amazing quarter.
post #28 of 97
Quote:
Originally Posted by asdasd View Post

They could do much better than that . Assume 110% growth throughout the year and you get much higher. December would be 32 million alone. I would see 100-110 M. With cheaper models they would be much higher.

Yes they could. That was just my personal wild-ass estimate. Just feelin my oats from my pretty close guess on sales of various Apple product lines prior to today's announcement.
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post #29 of 97
I guess in technical terms that is called "kicking a$$ and taking names...."
post #30 of 97
Okay so $26.74 billion for quarter number one and $24.67 billion for quarter number two, what do you think we are looking at for the year...? Well over 100 Billion...?
post #31 of 97
Ya think? They'd have to go backward not to hit $100B.
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post #32 of 97
All in all, amazing numbers. The odd one out is iPad. Or rather, how iPad sales and the comments by the executive gel with wait times for the product.

Ie lower than expected sales (not broken down iPad v iPad 2) v improved availability?

This is more puzzling given the supposed supply constraints out of Japan.

Two possibilities spring to mind.

1. Supply has amped up considerably despite supposed supply constraints.
2. Demand is not as strong as expected.

Perhaps the iPad as a general computing device may not be a two year refresh cycle for consumers?

Thoughts?
post #33 of 97
Quote:
Originally Posted by djsherly View Post

All in all, amazing numbers. The odd one out is iPad. Or rather, how iPad sales and the comments by the executive gel with wait times for the product.

Ie lower than expected sales (not broken down iPad v iPad 2) v improved availability?

This is more puzzling given the supposed supply constraints out of Japan.

Two possibilities spring to mind.

1. Supply has amped up considerably despite supposed supply constraints.
2. Demand is not as strong as expected.

Perhaps the iPad as a general computing device may not be a two year refresh cycle for consumers?

Thoughts?

They clearly said that demand ( as we know) exceeded supply. And that channel inventory was lower than they would hope.

I think the high estimates were off base - the iPad 1 is done, and out of inventory everywhere, but iPad 2 is not available everywhere. So comparing Q-Q growth: the US and the ten ( or so) countries where Apple were shipping the iPad2 would have to compete with the 100 or so where it was available in December Q.
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post #34 of 97
I hope the earnings are going to compensate for the security news that just drop on Apple today

http://petewarden.github.com/iPhoneTracker/

this has the potential to crush apple, has a stock owner and iphone owner this is scaring me a lot.
post #35 of 97
Quote:
Originally Posted by herbapou View Post

I hope the earnings are going to compensate for the security news that just drop on Apple today

http://petewarden.github.com/iPhoneTracker/

this has the potential to crush apple, has a stock owner and iphone owner this is scaring me a lot.


We have a thread on that.
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post #36 of 97
Quote:
Originally Posted by asdasd View Post

They clearly said that demand ( as we know) exceeded supply. And that channel inventory was lower than they would hope.

I think the high estimates were off base - the iPad 1 is done, and out of inventory everywhere, but iPad 2 is not available everywhere. So comparing Q-Q growth: the US and the ten ( or so) countries where Apple were shipping the iPad2 would have to compete with the 100 or so where it was available in December.

Which would jibe with my comment elsewhere that (I'm guessing) Apple pushed up the release of the ipad2 much sooner than originally planned to grab media attention away from scheduled press conferences by Motorola. Probably would have worked out OK except for an earthquake.
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post #37 of 97
Quote:
Originally Posted by herbapou View Post

I hope the earnings are going to compensate for the security news that just drop on Apple today

http://petewarden.github.com/iPhoneTracker/

this has the potential to crush apple, has a stock owner and iphone owner this is scaring me a lot.

You must be new. This is a non-issue.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #38 of 97
Quote:
Originally Posted by Apple/// View Post

Okay so $26.74 billion for quarter number one and $24.67 billion for quarter number two, what do you think we are looking at for the year...? Well over 100 Billion...?

Apple will probably do over $100 billion for the year and some analyst(s) will find fault with the numbers.

It's incredible that the iPod is still selling just 9 million a quarter.
post #39 of 97
Quote:
Originally Posted by asdasd View Post

They clearly said that demand ( as we know) exceeded supply. And that channel inventory was lower than they would hope.

Exactly. I'm trying to work out how those statements match improved availability and the Japan externality (if that has any effect at all) and lower overall sales. Perhaps initial supply was not what it was thought to be. Youy probably have a point there.
post #40 of 97
Their sell-through was 5.1 million. Since some of that was a reduction ( to zero) of iPad 1 channel inventory booked in the last quarter it doesn't count as sales. It indicates that all iPad 1's sold out and the iPad 2 is backlogged. As we would guess.

he said that Japan had no material effect.
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