Apple generated $15.7 billion in its third fiscal quarter, for a net quarterly profit of $3.25 billion. Along the way, it sold 3.27 million iPads, 3.47 million Macs and 8.4 million iPhones.
Apple sold 3.27 million iPads in the third fiscal quarter of 2010, on its
way to earning total revenues of $15.7 billion and a net quarterly profit of
$3.25 billion. As in previous quarters, both Macs and iPhones experienced a
year-over-year increase in sales, while iPods continued their single-digit
Apple sold 3.47 million Macs during the quarter-a 33 percent increase from
the year-ago quarter-and 8.4 million iPhones, a 61 percent increase. Apple's
reported sales of 9.41 million iPods represented an 8 percent decline from the
same quarter in 2009; the company has long suggested that
cannibalization by the iPhone is at least partially responsible for that decrease
Peter Oppenheimer, Apple's chief financial officer, mentioned during a July
20 earnings call that the company expected to pay out roughly $175 million in
free rubber bumpers for the iPhone 4. On July 16, Apple CEO
Steve Jobs announced during a hastily organized press conference that customers
who purchase an iPhone 4 through Sept. 30 would be eligible to receive a free
bumper, which covers the device's external antenna rim. Touching that rim, some
customers and publications have complained, results in dampened
Tim Cook, Apple's chief operating officer, suggested during the earnings
call that the company would be ramping up iPad production. "We're
increasing capacity as quickly as we can," he said. He offered no guidance
as to when production and demand for the iPad would reach equilibrium.
Cook also suggested that the controversy over the iPhone 4 had not translated
into decreased sales for the device: "Let me be very clear. We're selling
every unit we make currently. "
Apple's second quarter of fiscal 2010 had been similarly strong, boosted by
strong sales of both Macs and iPhones, with revenue of $13.50 billion and a net
quarterly profit of $3.07 billion. That not only beat Wall Street estimates of
$12 billion, but represented a substantial revenue increase from the same
quarter in 2009, when the company tallied revenues of $9.07 billion and net
profit of $1.67 billion.
By the time of that April 20 earnings call, the iPad had been on sale for
only a few weeks in the United States, making it impossible to accurately determine
the device's overall impact on the company's bottom line. Another quarter
later, though, its effect is apparent.
Hours before Apple was scheduled to give its third-quarter 2010 results,
analyst firm iSuppli published a research note suggesting that the company
would ship 12.9 million iPads in 2010, followed by 36.5 million in 2011 and
50.4 million in 2012. That represents an increase from its April forecast of
7.1 million units.
"The key to continuing success will be how quickly
Apple responds to issues as they arise and whether the company can align
suppliers to meet demand needs," Rhonda Alexander, director of monitor
research for iSuppli, wrote in the July 20 research note. "Apple's
acceleration of its component demand indicates that the company has raised its
iPad production target for 2010."