Apple profits edge higher on sales of 2.52M Macs, 22.7M iPods

Posted:
in General Discussion edited January 2014
Apple said Wednesday that first-quarter profits rose a little less than 2 percent to $1.61 billion, or $1.78 per diluted share, on record sales of $10.17 billion for the three-month period ended December 27, 2008.



The results compare to revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, equal to the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.



"Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history -- surpassing $10 billion in quarterly revenue for the first time ever," said Apple chief executive Steve Jobs.



Apple sold 2,524,000 Macintosh computers during the quarter, representing nine percent unit growth over the year-ago quarter. The company also sold a record 22,727,000 iPods during the quarter, representing three percent unit growth over the year-ago quarter. Quarterly iPhone units sold were 4,363,000, representing 88 percent unit growth over the year-ago quarter.



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 economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $11.8 billion of "Adjusted Sales" and $2.3 billion of "Adjusted Net Income."



"Our outstanding results generated over $3.6 billion in cash during the quarter," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second fiscal quarter of 2009, we expect revenue in the range of about $7.6 billion to $8 billion and we expect diluted earnings per share in the range of about $.90 to $1.00."



Apple will provide live streaming of its Q1 2009 financial results conference call utilizing QuickTime. The live webcast will begin at 2:00 p.m. PST today. AppleInsider will provide full coverage.



Additional coverage of Apple's Q109 release



Notes of interest for Apple's Q1 2009 financial results call

Apple TV sales rise 300%, will see continued investment

Apple rules out "iPhone nano," not keen on Mac netbook
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Comments

  • Reply 1 of 38
    amac4meamac4me Posts: 282member
    A growth slowdown is clearly evident in these numbers. The lower guidance for the current quarter relative to the street's estimates further demonstrates that Apple has to respond to the economic backdrop.
  • Reply 2 of 38
    Congrats to Apple, one of the greatest American companies left.
  • Reply 3 of 38
    macxpressmacxpress Posts: 4,899member
    Quote:
    Originally Posted by amac4me View Post


    A growth slowdown is clearly evident in these numbers. The lower guidance for the current quarter relative to the street's estimates further demonstrates that Apple has to respond to the economic backdrop.



    The 2nd quarter is always Apple's hardest quarter as its after the holiday season and before the school buying season. Its a tough sell even during good times.



    Apple is always very conservative with its outlook for the next quarter. You will see the stock go down because of it. Happens every time. Seems like investors would learn this!



    These are pretty good numbers. I was hoping a bit more for for iPhone sales. Perhaps if Apple didn't have such as asinine system for getting one over the holidays it would have been better, who knows! The iPod sales are great! So much for the iPhone killing iPod sales.



    We'll see as time goes on if Apple can continue to keep these types of numbers up in line with the quarter of a year ago. This will tell how Apple is doing during this downturn. IMO, we need to wait until we get further into the year before we can truly say Apple is immune to this downturn.
  • Reply 4 of 38
    mj webmj web Posts: 918member
    Great numbers!

    No one escapes the economic slowdown.
  • Reply 5 of 38
    aaarrrggghaaarrrgggh Posts: 1,580member
    Flat year-over-year is amazing given all the doom and gloom. Q2 Estimates are for $1.13 down from 1.16, so Apple's guidance is generally on-par; it would be odd to see analysts lower estimates.



    This will really put a lot of pressure on some of their "peers" and competitors to deliver this quarter.



    One thing can be said though-- Apple is running an efficient ship. The margins will likely have to drop a little in the near term to move more product, but even 5% drop gives them a 30% margin...
  • Reply 6 of 38
    Outstanding numbers, guys!! They've bettered year-ago quarter's "best ever" numbers consistently. And this when 2008 was supposed to be a bad year for Apple too like it was for everyone else. Hope AAPL sellers and naysayers STFU now!
  • Reply 7 of 38
    richlrichl Posts: 2,213member
    Quote:

    Quarterly iPhone units sold were 4,363,000, representing 88 percent unit growth over the year-ago quarter.



    Ouch. 35% fall from the previous quarter. Apple's global smartphone marketshare is going to be well down. I remember Prince McLean predicting the downfall of Nokia because their smartphone sales only rose 5% quarter-on-quarter.



    Otherwise, impressive numbers in these tough times.
  • Reply 8 of 38
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by macxpress View Post


    Apple is always very conservative with its outlook for the next quarter. You will see the stock go down because of it. Happens every time. Seems like investors would learn this!



    Whoops, guess not.
  • Reply 9 of 38
    hosshoss Posts: 69member
    Now seal a government contract of a Mac on every desk and donate a few million ipod touches to Kenyan, Chinese, Mexican and American schools......with some kind of education pack.
  • Reply 10 of 38
    johnqhjohnqh Posts: 242member
    Quote:
    Originally Posted by RichL View Post


    Ouch. 35% fall from the previous quarter. Apple's global smartphone marketshare is going to be well down. I remember Prince McLean predicting the downfall of Nokia because their smartphone sales only rose 5% quarter-on-quarter.



    Otherwise, impressive numbers in these tough times.



    Wrong,



    6.9M were SHIPPED last quarter. Among that 6.9M, 2M were in the channel, so the sales was about 4.9M last quarter.



    That also includes the pend-up demand. There were no iPhone in stock anywhere for almost a month before iPhone 3G was introduced.
  • Reply 11 of 38
    Can we just get the stock price > 100 so that I can dump these?
  • Reply 12 of 38
    macxpressmacxpress Posts: 4,899member
    Quote:
    Originally Posted by cameronj View Post


    Whoops, guess not.



    Check Apple's stock in after hours trading...not what it closed at. Don't get me wrong..I hope it goes up. Its just typically goes down.
  • Reply 13 of 38
    walshbjwalshbj Posts: 864member
    I thought the analysts said everyone already had an ipod...
  • Reply 14 of 38
    Quote:
    Originally Posted by macxpress View Post


    Check Apple's stock in after hours trading...not what it closed at. Don't get me wrong..I hope it goes up. Its just typically goes down.



    Indeed. Normally Apple goes down after CC or keynote, macworld.



    Be cautios though, I've seen this happen before with other tech stocks, see it go up, up, up, only to have a slow dump, Th, Fri, Monday, Tue with it ending up below what it was a few days ago.



    WS is a slimly bunch that loves to get LONGS from mom/pop investors (any tech stock).
  • Reply 15 of 38
    Tim Cook: "We're not going to build a low-end voice phone. Our objective is not to be unit share leader, it's to build the world's best phone."



    I stated it here at AI under another post.

    Smaller technology, in a smaller form factor, Implies higher price point.



    IF Apple is in fact working on a nano iPhone, with all the bells and whistles of todays 3G BUT in a smaller form factor, it will sell for $399 and up.



    Tim just said as much.
  • Reply 16 of 38
    Quote:
    Originally Posted by RichL View Post


    Ouch. 35% fall from the previous quarter. Apple's global smartphone marketshare is going to be well down. I remember Prince McLean predicting the downfall of Nokia because their smartphone sales only rose 5% quarter-on-quarter.



    iPhone numbers are bound to have peaks and troughs, just wait till the next revision arrives. I also predicted the downfall of nokia. (which incidentally is already happening)
  • Reply 17 of 38
    e1618978e1618978 Posts: 6,074member
    I am so happy, my call options will bring me back into the green, I hope...
  • Reply 18 of 38
    Wow. iPhone sales absolutely cratered. On the other hand, iPods soared. Funny, I bought a 120GB Classic back in December 08. To me, it's not all that surprising. In this economy, to be saddled with the outrageous AT&T contract, is asking too much of most consumers. I have friends who got iPhones for Xmas from their wives, but I suspect sales of iPhones will keep going down. And that Andy Zack guy got it horribly wrong, sadly the pessimistic analysts were more right than he was
  • Reply 19 of 38
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by RichL View Post


    Ouch. 35% fall from the previous quarter. Apple's global smartphone marketshare is going to be well down. I remember Prince McLean predicting the downfall of Nokia because their smartphone sales only rose 5% quarter-on-quarter.



    "Prince" is overly enthusuastic at times.



    Comparing sequential quarters is fraught with potential errors because most markets are seasonal. Unless you account for seasonal variations, and do a good job of it, there's not much that can be read from that, so the best way is to compare from same time previous year.



    Quote:
    Originally Posted by BuffyzDead View Post


    Tim Cook: "We're not going to build a low-end voice phone. Our objective is not to be unit share leader, it's to build the world's best phone."



    I stated it here at AI under another post.

    Smaller technology, in a smaller form factor, Implies higher price point.



    IF Apple is in fact working on a nano iPhone, with all the bells and whistles of todays 3G BUT in a smaller form factor, it will sell for $399 and up.



    So far, Apple has been trying to price things such that bigger is more expensive, smaller is cheaper. I don't think an iPhone nano would really be a low end phone either. If anything, if there is a smaller model (though IMO doubtful), maybe drop 3G, smaller screen, and text entry would have to be T9 for anyone other than a person with very small hands.



    I wouldn't mind a larger screen model, I doubt that too.
  • Reply 20 of 38
    e1618978e1618978 Posts: 6,074member
    Quote:
    Originally Posted by FineWine View Post


    Wow. iPhone sales absolutely cratered. On the other hand, iPods soared. Funny, I bought a 120GB Classic back in December 08. To me, it's not all that surprising. In this economy, to be saddled with the outrageous AT&T contract, is asking too much of most consumers. I have friends who got iPhones for Xmas from their wives, but I suspect sales of iPhones will keep going down. And that Andy Zack guy got it horribly wrong, sadly the pessimistic analysts were more right than he was



    You need to read the thread better - iPhone sales are flat once you take the channel stuffing effect into account.



    [edit] Also channel draw down was 250,000 iPhone, so you really need to reduce last quarter's numbers by that much and increase this quarter's numbers by that much. Customers actually bought 4.65 million iphones this quarter and 4.9 million iphones last quarter. The channel currently holds 1.75 million iPhones.
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