Apple Posts Record Profits Ahead of Launch of OS X Lion

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On the eve of the launch of OS X Lion, Apple has again posted record profits on the strength of its iPhone and iPad sales. During the company's third-quarter earnings report, Apple CFO Peter Oppenheimer reported that the company earned its highest quarterly revenue and set quarterly records for iPad and iPhone sales and a June record for Mac sales. Revenue for the quarter was $28.6 billion, representing year-over-year growth of 82 percent, that tops the Apple's December quarter record by $1.8 billion and was almost $13 billion over last year's results.

Net income was $7.3 billion topping the previous record of by $1.3 billion. Net income grew faster than revenue rising by 125 percent year over year and translated to earnings per share of $7.79

Apple sold 3.95 million macs, representing a 14 percent increase over the year ago quarters results. Sales of Macs were particularly strong in the Asia/ Pacific region where the company saw a 57 percent year-over-year increase in total Macs sold.

Apple's iPods continued to take a hit, with total sales decreasing from 9.4 million during the same quarter last year to 7.5 million, a decrease of 1.9 million units. Of that, that iPod Touch made up more than 50 percent of total iPod sales. Apple still remains the most widely sold MP3 player in the U.S., making up some 70 percent of the total market. The iTunes store also saw revenue increases, generating $1.4 billion, a 36 percent increase year-over-year.

On the iPhone front Apple sold a record 20.3 million compared to 8.4 million in the June previous quarter, a 142 percent increase in year-over-year growth. In total, iPhone and iPhone accessories sales generated $13.3 billion during the quarter compared to $5.3 billion in the year-ago quarter, a 150 percent increase. In the Asia/ Pacific region, sales nearly quadrupled. The smartphone is now available through 228 carriers in 128 counties.

The company also saw iPad sales increase by 183 percent through the June quarter to 9.2 million compared to 3.3 million in the year-ago quarter. Total revenue from sales of the iPad and iPad accessories during the quarter was topped out at more than $6 billion compared to $2.2 billion during the same quarter last year, a year-over-year increase of 179 percent.

Apple's brick and mortar stores also generated record June quarter results, with revenue growing to $3.5 billion from $2.6 billion, an increase of 36 percent. That growth, Oppenheimer said, was primarily a result of a higher volume of iPad, iPhone, and Mac sales. The stores sold roughly 768,000 Macs last quarter compared to 677,000 during the third-quarter of 2010. The company also opened four new international locations including two in France, one in Germany, and one in England, bringing the total number of Apple stores to 327.

On average, the stores each brought in about $10.8 million in revenue compared to $9 million in revenue in the year-ago quarter. The company is expected to open an additional 30 new stores in the next quarter bringing the total opened in 2011 to 40, including 28 outside of the United States.

Apple says its current cash reserves totaled $76.2 billion at the end of the June quarter compared to $65.8 billion at the end of March. Oppenheimer predicted that revenue for the September quarter will increase by a little less than $5 million from $20.3 billion to $25 billion. To date, the company has generated $35 billion in year-over-year revenue growth, and $9.5 billion in year-over-year earnings growth, an increase of 99 percent.

During the question and answer session following the report, Apple COO Tom Cook admitted that iPad sales are cannibalizing overall Mac sales, but added that he believes the tablets are having a larger impact on the Windows PC market.

Author Bio
Daniel P. Howley
Daniel P. Howley, LAPTOP Senior Writer
A newspaper man at heart, Dan Howley wrote for Greater Media Newspapers before joining He also served as a news editor with ALM Media’s Law Technology News, and he holds a B.A. in English from The Richard Stockton College of New Jersey.
Daniel P. Howley, LAPTOP Senior Writer on
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