Why not 100%? Apple profit surges on iPhone, iPad
Of course, this was Apple’s best ever second quarter with net profit up a stunning 94 percent. For once, there is relatively little carping about Apple’s results — it’s unusual when the people (investors, analysts) who don’t have anything to complain about don’t actually complain*.
Although it seems obvious that Apple could have sold more Macs, assuming they had new models to offer, the company did well, outgrowing the industry 7 percent to 2 percent. Telling statistic here is that desktop volume outgrew portable by a wide margin.
And, the quote of the week comes from CEO Tim Cook who said, “You can converge a toaster and a refrigerator, but those things are probably not going to be pleasing to the user.” That’s a rather interesting take on Microsoft’s strategy, n’est pas?
• iPhone: 35.1 million units, up 88 percent y-o-y
— China sales increased by over 500 percent
— Asia-Pacific sales doubled y-o-y
— Strong shift by corporations to iPhone
— Most Fortune 500 companies that use the iPhone are also develop apps
• iPad: 11.8 million units, up 151 percent y-o-y
— iPad now available in over 40 countries
— Apple sells more than 2 iPads for every Mac in education
— New iPad is on fire, selling them as fast as Apple can make them
— iPad 2 price cut has unlocked some education demand
• iOS ecosystem: Now more than 365 million units strong
— 67 million iPads sold to date
— 50 million iOS devices sold last quarter
— App stores in more than 120 countries
— More than 600,000 apps total
— Over 200,000 made for iPad apps
— 125 million iCloud subs
• Mac: 4 million units, up 7 percent y-o-y
— Desktops up 19 percent, portables up 2 perfect
— Up 60 percent year over year in China
— Asia-Pacific grew 28 percent
— Ended the quarter with just 4-5 weeks of supply, below guidance
Another quotable Cook quip? “I’ve always hated litigation … We just want people to invent their own stuff. If we could get to some arrangement where we could assured that would be the case.”
Call it an existential fear, but Apple’s nearly 50 percent gross margin seems, well, wrong. That Cook almost flippantly dismissed wireless carrier angst over iPhone subsidies is perhaps the best proof thereof.
• iPod: 7.7 million units, down 15 percent y-o-y
— iPod touch accounted for more than half of all units
— Market share remains above 70 percent
— iTunes Store sales of $1.9 billion, up 35 percent
• Apple Stores
— 85 million visitors at Apple stores last quarter vs. 71 million last year
— Apple Store revenues of $4.4 billion, 363 stores worldwide
— Average revenue per store was $12.2 million, up 22 percent
• Miscellaneous fiscal joy
— Revenues of $39.2 billion, profit of $11.6 billion ($12.30 EPS, $14 billion cash flow)
— China sales were $7.9 billion, bringing the fiscal ’12 to date first half to $12.4 billion versus $13.3 billion for all ’11
— Apple now has $110.2 billion in cash and short-term investments
— Gross margin was 47.4 percent vs. to 41.4 percent last year
What was your favorite Cook quip?
* Seriously, if Apple discovered a universal cure for cancer and gave it away, the analysts, journos and bloggers would bitch that hospitals had been obsoleted. Those people will never be satisfied.