Unlocked iPhones help drive Apple's Q2
24-04-2008
by The Register

Announcing its second quarter financial results, Apple confirmed the obvious by saying a "significant" number of iPhones are being purchased from its outlets with the express intention of unlocking them.

That trend, coupled with higher-than-expected demand, has resulted in inventory shortages, the company claimed.

COO Tim Cook refused to provide a precise figure on the number of unlocked phones, but put a positive spin on the hacks, telling Wall Street investors that this is an indicator of worldwide interest in the iPhone.

Overall, Apple claimed 1.7 million units sold, creating revenue of USD378 million from handsets, accessories and money from carriers. The company says it is on target to hit 10 million iPhones sold this calendar year.

For the three months to 29 March, Apple reported USD1.04 billion in net income, a year-on-year increase of 35.7 percent, on USD7.51 billion revenue, which was up 42 percent year-on-year. Earnings per diluted share came in at USD1.16, compared to USD0.87 for the year-ago quarter.

It was the Mac that propelled Apple towards one of its best quarters in terms of revenue. Apple shipped 2.28 milliom Macs, representing 51 percent unit growth and 54 percent revenue growth over last year, and 10.64 million iPods, a 1 percent unit growth and 8 percent revenue growth.

Apple hailed strong interest from developers in business and academia for its iPhone development programme. One third of Fortune 500 companies and 400 higher-education institutions have joined the iPhone app effort, Apple told investors.

Separately, Apple declined to comment on its reason for the USD278 million purchase of PowerPC chip designer PA Semi, saying only that it buys small companies from time to time.

The Register and its contents are copyright 2008 Situation Publishing. Reprinted with permission.