Apple profits soar 50% on record sales of 3.36 million Macs

Posted:
in General Discussion edited January 2014
Apple said Monday that first-quarter profits shot up more than 50 percent to $3.38 billion, or $3.67 per diluted share, on record sales of $15.68 billion for the three-month period ended December 26, 2009.



The results compare to revenue of $11.88 billion and net quarterly profit of $2.26 billion, or $2.50 per diluted share, in the year-ago quarter. Gross margin was 40.9 percent, up from 37.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter's revenue.



Apple sold an all-time best 3.36 million Macintosh computers during the quarter, representing a 33 percent unit increase over the year-ago quarter. The company also shipped a record 8.7 million iPhones in the quarter, representing 100 percent unit growth over the year-ago quarter. Meanwhile, iPod sales came in at 21 million, representing an eight percent unit decline from the year-ago quarter.



During the quarter Apple elected retrospective adoption of the Financial Accounting Standards Board's amended accounting standards related to certain revenue recognition. Adoption of the new accounting standards significantly changes how the company accounts for certain items, particularly sales of iPhone and Apple TV. Put more simply, the company is now reporting an amended version of GAAP financials as their official results.



"If you annualize our quarterly revenue, it's surprising that Apple is now a $50+ billion company," said Apple chief executive Steve Jobs. "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."



"We are very pleased to have generated $5.8 billion in cash during the quarter," added Apple chief operating officer Peter Oppenheimer. "Looking ahead to the second fiscal quarter of 2010, we expect revenue in the range of about $11.0 billion to $11.4 billion and we expect diluted earnings per share in the range of about $2.06 to $2.18."



Apple will provide live streaming of its Q1 2010 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. PST on January 25, 2010. AppleInsider will provide full coverage.
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Comments

  • Reply 1 of 97
    john.bjohn.b Posts: 2,714member
    "...starting this week with a major new product that we're really excited about."



    I wonder what that could be?
  • Reply 2 of 97
    rbonnerrbonner Posts: 635member
    Quote:
    Originally Posted by John.B View Post


    "...starting this week with a major new product that we're really excited about."



    I wonder what that could be?



    I was reading a rumor that it might be a tablet. If so, you heard it here first!
  • Reply 3 of 97
    intenseintense Posts: 106member
    This year is e x c i t i n g
  • Reply 4 of 97
    One word: Wow...
  • Reply 5 of 97
    ilogicilogic Posts: 298member
    I thought it started 5:00PM EST?



    Also, the Mac sales are impressive!
  • Reply 6 of 97
    They should buy Michael Dell.
  • Reply 7 of 97
    markbmarkb Posts: 153member
    So they just barely beat street estimates? These numbers are confusing. Did they roll all the prior quarters unrecognized iPhone revenue into this quarters numbers or is the 15 B JUST this quarter?
  • Reply 8 of 97
    nasseraenasserae Posts: 3,152member
    Impressive!



    So how many iPhones were sold in total for 2009?



    Edit: Got it. They've sold 25.1 million in 2009.
  • Reply 9 of 97
    41% gross margin.....



    ouch....



    gouge much...?
  • Reply 10 of 97
    aaarrrggghaaarrrgggh Posts: 1,558member
    So now that they are away from subscription based accounting, do they retroactively modify previous earnings, or do they realize them as scheduled? Numbers not quite as good as I had hoped; the iPhone numbers are short especially.



    Oh well, at least we are finished with the stupid subscription accounting.
  • Reply 11 of 97
    ifailifail Posts: 463member
    Very great numbers for Apple.



    I wonder where those people are who were crowing Apple would sell 11 million iPhones...



    Also, anyone noticing the trend of slipping iPod sales? With so many devices doing it all-in-one the age of owning just a music device is dying. Even if Apple continually updates their iPod Touch line to mimic the iPhone...why would you bother buying one if you owned an iPhone/Smartphone already?
  • Reply 12 of 97
    mactelmactel Posts: 1,275member
    Yep, 3.3 million Macs as predicted. My sources were spot on.
  • Reply 13 of 97
    Quote:
    Originally Posted by Archipellago View Post


    41% gross margin.....



    ouch....



    gouge much...?



    Maybe it is time for price cuts across the board...
  • Reply 14 of 97
    Quote:
    Originally Posted by astrosmash View Post


    They should buy Michael Dell.



    Then fire him and refund the money to the investors!
  • Reply 15 of 97
    ilogicilogic Posts: 298member
    Quote:
    Originally Posted by astrosmash View Post


    They should buy Michael Dell.







    But seriously, I do think Apple needs to 'buy' someone with a visionary way of changing the enterprise landscape...



    On a side note, I think Windows 7 is the last version that will do Microsoft any real good, Apple is pulling a Return of the Jedi right now...
  • Reply 16 of 97
    wow, is AppleInsider in trouble? how did you get to post this before the conference started
  • Reply 17 of 97
    aaarrrggghaaarrrgggh Posts: 1,558member
    Quote:
    Originally Posted by markb View Post


    So they just barely beat street estimates? These numbers are confusing. Did they roll all the prior quarters unrecognized iPhone revenue into this quarters numbers or is the 15 B JUST this quarter?



    It is pretty unclear right now how they approached it; if all they brought in was $15B including deferred revenue then they had an abysmal quarter. Have to wait for the call for some clarity.
  • Reply 18 of 97
    Quote:
    Originally Posted by ifail View Post


    Very great numbers for Apple.



    I wonder where those people are who were crowing Apple would sell 11 million iPhones...



    Also, anyone noticing the trend of slipping iPod sales? With so many devices doing it all-in-one the age of owning just a music device is dying. Even if Apple continually updates their iPod Touch line to mimic the iPhone...why would you bother buying one if you owned an iPhone/Smartphone already?



    The number that really matters is iPod + iPhone unit sales. And apple makes 2x-10x more revenue per iPhone sold compared to per iPod sold, so iPhone cannibalizing iPods is a good thing.



    UPDATE: In the conference call, they just mentioned that the iPod revenue increased by 1% despite the unit volume decline.



    Another factor to consider is that iPods are not as disposable as they used to be...



    Of course, now we have the iTablet coming up into the mix...
  • Reply 19 of 97
    solsunsolsun Posts: 763member
    Quote:
    Originally Posted by ifail View Post


    Very great numbers for Apple.



    I wonder where those people are who were crowing Apple would sell 11 million iPhones...



    Also, anyone noticing the trend of slipping iPod sales?



    Yes, but an 8% unit decline of one portable device is not really such a big deal when you have another portable device that grew 100%.
  • Reply 20 of 97
    Quote:
    Originally Posted by juanm View Post


    wow, is AppleInsider in trouble? how did you get to post this before the conference started



    The quarter end press release (and news) is always released before the conference call on all major news outlets...
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