Apple results wow Wall Street, surpass Microsoft

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Antennagate be damned, Apple has done it again, with the firm managing to pull its best ever quarterly revenue results out of its sleek, shiny hat on Tuesday.

Bad press and grumbling over the iPhone 4’s antenna problems left Apple totally unfazed as the firm announced revenue of $15.7 billion, an increase of $6 billion or 61% over the prior June quarter’s results.
Apple’s Chief Financial Officer, Peter Oppenheimer, said the “tremendous revenue growth” was mainly down to “the very successful launch of iPad,” in addition to the strong sales of iPhone and Mac.
Apple’s operating margin was $4.23 billion, representing 27% of revenue. Net income was $3.25 billion up 78% over the year-ago quarter and earnings per share were $3.51.
The results even managed to beat the street’s revenue estimates by about a billion dollars revenue growth tracking 3.3% above expectations.
Doubtless feeling optimistic – as well it might – Apple also raised its revenue outlook well above analyst predictions for next quarter.
“We are shipping the best products in Apple’s history, and response from our customers has been terrific,” gushed Oppenheimer, who went on to say the firm was “very pleased with iPhone sales of 8.4 million, including over 1.7 million iPhone’s 4s in the initial five countries where it was launched.”
“This,” he went on “represents 61% year-over-year growth and is considerably higher than IDCs published estimate of 38% growth for the global Smart Phone market overall in the June quarter.”
Indeed, recognized revenue from iPhone handset sales, accessory sales and carrier payments came to a whopping $5.33 billion this past quarter compared to $3.06 billion in the year-ago quarter, an increase of 74%. At the end of the June quarter, Apple boasted iPhone distribution with 154 carriers in 88 countries.
Oppenheimer also pointed out that the sales value of iPhones alone was about $5 billion, which yields an ASP of about $595.
Turning his attention to the firm’s own operating system, Oppenheimer stated that in Q2 his firm had managed to surpass cumulative sales of 100 million iOS devices. “Response to the iOS 4, since its June 21 launch, has been very favorable with customers and reviewers praising its many new features including multitasking, folders, enhanced mail and deeper enterprise support,” noted Oppenheimer without the slightest trace of irony.
As for Apple’s profit enhancing tablet, Oppenheimer confirmed the company had shipped 3.27 million iPads to customers in 10 countries through the end of June.
Recognized revenue from sales of iPad and iPad accessories during the quarter, he said, was 1.27 billion. “The sales value of iPads alone was almost $2.1 billion, which yields an ASP of about $640,” he added.
Apple also re-affirmed its commitment to expand its iPad reach by bringing the tablet to an additional nine countries on July 23rd.
Possibly sweetest of all for Apple this quarter, however, is the fact the firm has now smashed rival Microsoft’s record for highest ever quarterly revenue. Of course, although nothing is certain, Microsoft may find it hard to beat Apple’s $15.7 billion bar this Thursday when it reports its own results, predicted by analysts to only total a rather paltry $15.27 billion.
Predictably enough, no sooner had the earnings been announced, Apple’s shares shot up by $8.59, or 3.4%, to $260.48 in pre-opening trading.