Tech company sees revenues rise 71% during holiday quarter to $26.7 billion, profit up 78% to $6 billion; iPhone sales up 86%, iPad sells 7.33 million.
On Monday, Apple took advantage of the Martin Luther King Jr. holiday day, when US stock markets are closed, to announce a medical leave for Steve Jobs, a leader often seen as intrinsic to the Cupertino, California, company's ongoing success. Today, Apple continued to evidence that success, announcing record results for its first fiscal quarter of 2011, which ended December 25, 2010.
For the three-month period, Apple reported record-setting revenues of $26.74 billion, up 71 percent from its holiday quarter a year ago. Profit rose a slightly more impressive 78 percent to $6 billion--or $6.43 per diluted share--during the period. Both results easily bested Wall Street's forecast, according to Reuters, which stood at revenues of $24.4 billion and earnings per share of $5.40.
Apple's iOS platforms continued to rule the day for the software and electronics company. The company sold 16.24 million iPhones between October 26 and December 25, an 86 percent increase from the same period a year ago. iPod sales rose 7 percent during the period to 19.45 million, while Mac computer sales climbed 23 percent to 4.13 million units sold. The iPad, which first went on sale in April 2010, sold 7.33 million units during the quarter.
Though the company's share price took a hit in trading today following Jobs' decision to take an indefinite leave of absence due to his ongoing fight with pancreatic cancer, falling 2.25 percent to $340.65, Apple has since rebounded in after-hours trading. The stock is currently trading up 1.5 percent to about $346.
Commenting on Jobs' role within the company, Kaufman Bros analyst Shaw Wu told Reuters that Jobs' role is "important but at the same time, as the company continues to execute, it becomes more secondary. The way Steve thinks, his methodology, his sense of style: frankly, a lot of it has been ingrained into the Apple culture."
Apple certainly has continued opportunity in its future. Last week, the company officially announced a deal with Verizon to bring the iPhone to the popular cell phone carrier, ending the device's AT&T exclusivity. The Verizon iPhone will be available beginning Thursday, February 10, in two versions: a $200 16GB model and a $300 32GB model. Both models will be black, with white versions to follow in the coming months.
@M4a5 I actually have like five PCs and they are for gaming and my Mac is for video editing, rendering and music production it paid for itself after two months but i game a lot so sometimes my friends will play black ops on it with no performance hitches so yeah it's fast enough for work or play that's why i have it, I like technology and would never dismiss a company if they make good s!?T. and yes pc parts are very cheap and easy to get i agree thats why i keep building them.
Great, another place on the Internet for Apple-fanboy vs hater flame wars. Just what everyone needed. Why oh why is the iOS platform being taken seriously as a gaming platform (which I assume is the reason this news is covered on GameSpot) - I could understand if this was an excerpt published from Slide-to-Play or something, but it looks like the core news team @Gamespot is covering Apple now! Buh, I read enough of those flame wars on other websites....geez. /end-whine
@EMGTEK if it smokes it then it cannot perform as well and is not as capable as the gaming PC. Have you done the Crysis Ultra on both, water level? And its not that I cant afford any mac, its just that I could as easily get the same hardware for MUCH cheaper. And whats the point of having 2 computers if 1 smokes the other?
i hate apple but i will hand them this....they are very competitve which is good for the free market. they put a fire under other tech companies a$$es, which in turn creates more products at more reasonable prices. in a roundabout way, they are good for the tech market.
"I have never been a fan of Apple computers but the iPod has changed the way we play music, just imagine what they could do to gaming." Apple innovate nothing! They stole their iPod "innovations" from other better companies www.theinquirer.net/inquirer/news/1019022/creative-finally-sues-apple. They have forever criticised Microsoft for owning an 80% share of the OS market, whilst now they own around 95% of the portable media hardware market. Hypocrites? Of course. Their computers are rubbish PCs with shiny plastic or aluminium sold at a rediculous price. The only reason they are so successful is because mindless sheep want to be cool with their friends. Not for the right reason; that's it's actually anything good. iPhones break incredibly easily; their screens crack and snap, their batteries often die before the phone's contract is up and they have long had reception issues (ongoing). When are people going to wake up and see Apple for what they are: a scam.
Think of this: Apple is a luxury brand. They don't make any new tech, they take the older stuff, package it to look "cool", and sell it with a luxury tax (otherwise known as the apple tax) which seems to be 50% MINIMUM. That is why their shares are up so high, its because they make a much bigger profit than normal tech companies. They don't need to sell as many to make their money. Their products are meant to be sub-par to the standards but meant to catch the eye so that people will buy it, and thus the money flows in.
@BAD-C0MPANY It's good to see SOMEONE here is older than 15 and knows their history. Apple not only stole from Microsoft but sued them for the very thing that Apple is now doing. It's sad how few of the kids here know stuff like that. They huff and puff with pomposity and ignorance. Those of us over 30 know the truth and remember it well. Apple is a farce. Don't get me wrong. I am ALL FOR companies making money. But for Apple to still play the "community" fiddle is sad, trite and snarky.
@EMGTEK You are delusional to think that us "apple haters" have never touched apple anything. I use it more than I would like and I don't like the experience for the price. And you cant compare apple and cars because the previous versions of the iWhatever do become obsolete in consumers and the companies eyes. And lastly, Windows 7 is meant to work great on any "capable' computer. That's why I like Microsoft more. Its just that your "gaming PC" is a piece of crap if a mac pro is just as good as it. I could easily make a gaming computer that is almost 2x more powerful as your mac pro for the money you wasted for it.
I have always wondered why Apple does not setup a gaming devolvement department like Microsoft has. I have never been a fan of Apple computers but the iPod has changed the way we play music, just imagine what they could do to gaming.
you guys always hate on Apple when you clearly haven't used none of their products, you just listen to other idiots who cry over prices when they are on par with the rest of the industry. also just because a new model comes out doesn't make the old one obsolete, ie: auto industry, so you wouldn't buy a 2010 model car in 2011? please don't be stupid people get your own opinions. by they way windows 7 installed on my mac pro is just as capable as my gaming PC BOTH are Great! now get over the hate idiots!!!!
Maybe they should come out with new new colors every few months like big N and see what that does for sales.
Maybe they should come out with new new colors every few months like big N and see what that does for sales.
Good for Apple. They make good products but they also dictate how you use it...which isn't my kinda thing. As far as I'm concerned, the only thing they're best in the world for is MP3 players.
Why are people criticising a company like Apple for bringing out new and improved versions of their products? They should maybe sell the same model forever? A bunch of jealous deadbeats if you ask me.
yep apple is an amazing machine (probably the best marketing in the world), that little apple symbol is worth over 20% of the product. When will people learn that Apple charges way to much for their stuff that is not that great?
Enjoying that iPad you got for Christmas? The very base model cost $499 you know. But guess what Apple fans! The iPad 2 is being announced in a little over 3 weeks. Rendering your brand new full price Christmas present completely defunct! YAY PROFITEERING!
Why is this on GameSpot? I'm sorry, but this is has nothing to do with videogames. The iPhone is no more a console as the fat '99 Nokia was with its black and white version of Snake.
@BAD-C0MPANY While WinMo has longer history than iPhone, I have to admit iPhone has better "restrictions". Like OS modification lock down, single tasking, and build-in application market, and un-intentional feature "same aspect ratio on all iPhone". WinPh7 actually gave up on WinMo idealogy and followed iPhone philosophy. Best thing they did is modification lock down. I can remove AT&T evil apps so easily and AT&T cannot do evil on me anymore.
It is sad that Apple's record-setting occurs in a year when it released such weak products. The iPad sucks, and the Mac has seen so significant improvements this year. The only good things Apple has made this year are their latest iPods.
@JohnisGodd Apple makes Nokia become mad til they even took antenna issue to humiliate apple.. but at the end, Nokia is going to doom without Android... iPhone makes lots of phone manufacture companies mad and they keep releasing Android phones and touchpads in a year. IF Android is JUST belong to Samsung, will Samsung beat Apple's iPhone sales? I wonder if it's not because iPhone, everyone is STILL using stylus to text.. I'm just asking.. "Their goal, primarily due to the ease of them having a substantial effect on the world, should be focused more on the evolution of technology. Not money. Instead of trying to make a better smart phone than competitors; They certainly have the resources to accomplish this task." - Do you apply those on Samsung, nokia, SE, HTC...? This is not even my opinion.. I just take the facts.
@JohnisGodd you're so wrong it's not even funny, but not matter what i say you're not going to change your mind so i'll just leave it at that.
@Kitpaws If you're talking about Apple-Dos then I guess you could say Microsoft took something Apple did and made it better. It still surprises me so many people fall in to the Apple trap. My sister-in-law wanted an iPhone so bad, and now that she has one it's crapped out on her after 4 months. Oh well, there will always be gullible people in this world.
Apple's share price is $346? Wow, that's high. I guess it's high to keep new investors away from the stock.
@inka_rob I still disagree with you. I think that with or without the Iphone. Some version of that phone would exist today. But this is a pointless argument as neither of us are soothsayers or time travelers. Your argument that apple forces other companies to compete is impossible to test. And therefore lacks validity. And I did not make my statement about apple saying that they should be a charity. Their goal, primarily due to the ease of them having a substantial effect on the world, should be focused more on the evolution of technology. Not money. Instead of trying to make a better smart phone than competitors; they should be spending unfathomable amounts of hours searching for an even more advanced means of communication. They certainly have the resources to accomplish this task. That is why apple sucks. Because they don't do that. They take things and say. How can we make this better? They don't say. What can we make... that is better than this?
@JohnisGodd I find it hard to believe that you think what you wrote is true. Smart phones are the biggest thing to happen to cellphones since they lost the battery-purse you used to have to carry around. Smartphones would not be here if not for iphone. Android would not be on a single phone if the iphone did not come first. are you HONESTLY telling me you think the Samsung Galaxy Tab would be on the market today if the ipad DID NOT exist. you are living in a fantasy world. simply asnwer this one question. would the Samsung Galaxy tab, the HP slate, the JooJoo, Dell Mini 5, etc, be out or coming out if the ipad was NEVER released. The answer is maybe. 5 years from now. I cant stand the ipod but it has forced other competeors to be think ahead of the curve. I coudlnt care less if they are in business for the money or the people. Its a business. that means they are in for the money... not a charity. big difference. look. I cant stand itunes, imacs, ipods. I like my iphone. thats it. I simply saying apple pushes tech forwards and forces other companies to either catch up or try to get ahead. that is what capitalism is about. That is apple.
@inaka_rob We are against ti because it does not push tech further. In fact, Apple does the near antithesis of that. It prevents technology from moving forward. Since it is a corporate giant it has massive influences on multiple facets of the technological words. Instead of allowing natural progression to take place; they inhibit the process by repackaging the same product in varying sizes, colors, and qualities. If I buy an Ipad, I am allowing this inhibition of progress to take place. More time should be spent developing products and less time trying to figure out which quarter will provide the most bountiful plunder. That is why people are against apple. They lack true ingenuity, inspiration, and they are in the business for the money. Not the people.
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