iPhone News Desk
Apple Taunts the Bears, Posts Blow-Out Quarter
Net profits in the March quarter were up 94% year-over-year to $11.6 billion returning $12.30 a share
By: Maureen O'Gara
Apr. 26, 2012 08:30 AM
After the bears lopped $70 billion off of Apple's value in the last few days, the company went bear hunting Tuesday crushing estimates.
Net profits in the March quarter were up 94% year-over-year to $11.6 billion returning $12.30 a share compared to estimates of $10.04 on revenues of $39.28 billion against projections of $36.81 billion.
Apple sold a completely unexpected 35.1 million iPhones, up 88% and only two million short of Christmas, plus 11.8 million iPads - up 151% even though the new one was only released mid-quarter - and even a respectable 7.7 million iPods, down 15%.
Macs, another spot that had the bears worried, were good for four million units, up 7% and in line with estimates, although Apple admitted they suffered iPad cannibalization.
International sales accounted for 64% of revenue.
China, which kicked in $7.9 billion worth of revenues, helped boost phones (the iPhone 4S wasn't available there until January), but supplies are reportedly so tight Apple doesn't have enough iPads to supply China and Asia-Pac although one wonders if that might have a little bit to do with the litigation over the iPad trademark.
Apple's got two million iPads in the channel, less than it would like.
Apple says Spain is weak and in a "terrible microeconomic situation."
Apple's gross margin was up six points to 47.4% thanks in part to components.
The company now has $110.2 billion in the bank and its upcoming dividend isn't likely to make much of a dent in that hoard. Seventy percent is socked away offshore.
Apple's projecting revenues of $34 billion this quarter returning earnings per share of about $8.68.
Its now-fabled stock put back around 40 bucks after-hours, which is still a ways away from its recent $644 peak. Wednesday morning before the Nasdaq opened it looked like it was going to open around $612.
iTunes revenues were up 35% to $1.9 billion. Apple store revenues were also up 35% to $4.4 billion. Each of them is seeing 18,000 visitors a week.
Apple CEO Tim Cook reflected that the company has sold 67 million iPads in the two years that the widget's been out. He said it took Apple 20 years to sell that many Macs and three years and then some to sell that many iPhones.
Cook also said that convergence was for other people. A cross between a refrigerator and a toaster wouldn't serve much purpose. He said there was little chance of Apple settling its litigation with Google.
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