Apple posts 73 percent jump in profits

26-07-2007

by Emmet Ryan

Apple rebounded from the embarrassing news that security flaws had been found in the iPhone by posting record profits for its third fiscal quarter.

Apple had revenues of USD5.41 billion for the quarter ending 30 June, up from USD4.37 billion a year earlier. Net profits of USD818 million were up a staggering 73 percent on the corresponding quarter of 2006 when the firm had profits of USD472 million.

Apple also managed to hammer analysts' expectations; earnings per share of USD0.92 far exceeded the average estimate of USD0.72 per share, and were even further clear of the USD0.54 per share earned in the same period last year.

Apple's gross profit margin was up to 36.9 percent, having been 30.3 percent in the year-ago quarter of 2006.

"We are very pleased to report strong financial results including cash flow from operations exceeding USD1.2 billion for the quarter," said Peter Oppenheimer, chief financial officer of Apple. "Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about USD5.7 billion and earnings per diluted share of about USD0.65."

The Californian firm's results were boosted by record sales of Macintosh computers and a strong performance by its range of iPod MP3 players. Apple shipped 1,764,000 Macintosh computers in the quarter, up 33 percent on the same period in 2006 and exceeding the previous company record for quarterly Mac shipments by over 150,000. The firm sold 9,815,000 iPods during the quarter, up 21 percent on last year. International sales accounted for 40 percent of the quarter's revenue.

"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Steve Jobs, chief executive of Apple. "iPhone is off to a great start, we hope to sell our one millionth iPhone by the end of its first full quarter of sales, and our new product pipeline is very strong."

Apple's management have plenty to be happy about. With the iPhone on course to meet the firm's expectations the prospects for future quarters is more than bright. Despite concerns revealed this week surrounding the security of the iPhone public enthusiasm over the device means Apple is still odds on to shift its target 10 million iPhones by the end of 2008.