iPhone Sales Drive Massive Revenue and Profit Growth for Apple
Apple released its second-quarter financial results today. This includes a record March quarter driving 83% revenue growth, and 95% profit growth.
Second quarter revenue came to $24.67 billion with profit at $5.99 billion ($6.40 per diluted share). For the same period last year, the company reported 13.50 billion revenue and $3.07 billion profit.
The company also recorded year-over-year iPhone sales growth of 113%, having sold 18.65 million iPhones in the quarter. In addition, the company sold 3.76 million Macs (28% YoY growth), 9.02 million iPods (a 17% YoY decline), and 4.69 million iPads during the quarter.
“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said CEO Steve Jobs. “We will continue to innovate on all fronts throughout the remainder of the year.”
CFO Peter Oppenheimer added, “We are extremely pleased with our record March quarter revenue and earnings and cash flow from operations of over $6.2 billion. 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.”
iPhone sales estimates had been all over the board, but clearly they’re doing well, based on this earnings report. Analysts expected the iPad to be doing a little better, but it looks like Apple will survive. iPod decline isn’t entirely shocking.
The iTunes store had its best quarter ever, Oppenheimer said in the conerence call. This included $1.4 billion in revenue.
He also noted that Apple will be celebrating the 10th anniversary of the Apple Retail Store on May 19, and that in a few days they will welcome their one billionth visitor. Apple plans to open 40 new stores in fiscal 2011.
COO Tim Cook talked a bit about the tragedy in Japan and how it might impact earnings in Q3. He said that there has been disruption for many suppliers of components, but employees have been “working around the clock” with suppliers in Japan on contingency plans. He says Apple does not anticipate any material impact to component supply or cost in fiscal Q3 barring any unpredictable, unforeseen incidents (aftershocks, etc.).