Print 69 comment(s) - last by weskurtz0081.. on Apr 27 at 10:09 AM

Apple profits rise 15%, iPhone sales soar

When it comes to Apple, the thing most fresh in most peoples' minds have been Microsoft's "Laptop Hunter" ads. Microsoft's three ads took direct aim at Apple's "cool" but expensive laptops and compared them to Windows Vista-based laptops which offered similar specs for hundreds less.

Despite the back and forth that has been brewing on the internet with Microsoft's fresh attack on Apple, the boys from Cupertino have something else on their minds today: Q2 2009 results for the period ending March 29. Despite the downturn in the economy, Apple as a company managed to post revenue of $8.16 billion and profit of $1.21 billion which represented earnings of $1.33 per diluted share. Apple's results for the same period last year were $7.51 billion, 1.05 billion, and $1.16 respectively.

While Microsoft's Laptop Hunter ads came too late in the quarter to personally do any serious damage to Apple's momentum with Mac sales, it appears that the slowing economy and consumers' penchant for lower-priced netbooks was the motivating factor for the three percent slide in Mac sales to 2.22 million compared to a year ago.

On the other hand, iPod sales grew a modest three percent to 11.01 million units while iPhone sales were up a whopping 123 percent from a year ago to 3.79 million units.

"We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history," said Apple CFO Peter Oppenheimer. "Apple’s financial condition remains very robust, with almost $29 billion in cash and marketable securities on our balance sheet. Looking ahead to the third fiscal quarter of 2009, we expect revenue in the range of about $7.7 billion to $7.9 billion and we expect diluted earnings per share in the range of about $.95 to $1.00."

Most Apple fans will now be looking forward to June when the company is expected to announce a new hardware revision of the iPhone and OS v3.0. The next generation iPhone hardware is expected to feature faster connectivity speeds, dual cameras, and support for stereo Bluetooth. The latest iPhone OS revision will bring much-needed support for MMS messaging, copy/paste, push notifications, and landscape email support.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Apple's Needing to Target Low-End Exaggerated
By Doormat on 4/22/2009 6:00:26 PM , Rating: 3
$20.7B as of Dec 31, 2008.

see the line Total cash, cash equivalents, and short-term investments

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
By stromgald30 on 4/22/2009 6:33:24 PM , Rating: 2

20 billion in cash, cash-equivalents, and short-term investments.

Not sure what this really means other than the ability to start new projects/expand or buy out other companies. If you look closer, Microsoft has more long term assets, including 12 billion in goodwill, which just reflects the premiums paid when buying out other companies.

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
RE: Apple's Needing to Target Low-End Exaggerated
By BBeltrami on 4/22/2009 6:53:51 PM , Rating: 3
You always have such thoughtful, intelligent contributions that add so much to the conversation. I'm really looking forward to the car analogy, again. I don't understand why you get rated down. DT readers are such tools, huh?

By DigitalFreak on 4/22/2009 9:17:52 PM , Rating: 4
The real reason Jobs had to have surgery was to remove Pirk's tongue from his ass.

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
By DigitalFreak on 4/22/2009 9:40:11 PM , Rating: 2
That's the best comeback you've got? Pathetic

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
By inighthawki on 4/22/2009 10:07:42 PM , Rating: 2
firstly, it's 'well', not 'good'. plus he's not trolling that was just terrible

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
By stromgald30 on 4/22/2009 7:01:33 PM , Rating: 4
Considering MSFT's net income is 4 times Apple's and their total assets are much higher, I don't think this means much at all. It's just an impressive figure that Apple's CFO was throwing around.

I remember back in 2002, MSFT kept close to 40 billion in cash and easily liquidated assets just for mergers and acquisitions. Having alot of cash lying around just means that a company is either about to do something expensive or is being poorly managed.

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
By stromgald30 on 4/22/2009 7:21:51 PM , Rating: 4
Lol. Maybe you should go back to school and brush up on those reading comprehension skills.

I said that a company with a lot of cash is probably about to do something expensive OR is being poorly managed. Why don't you look into all the acquisitions Microsoft did in 2000-2003: . They had their third largest acquisition ever in that year.

RE: Apple's Needing to Target Low-End Exaggerated
By Pirks on 4/22/09, Rating: -1
By stromgald30 on 4/22/2009 7:42:24 PM , Rating: 2
Lol, its funny how short sighted you're being.

There are a lot of other acquisitions there without the cost listed. In addition, some cash needs to be kept in reserve and some needs to be kept just in case a new, good deal comes along. My point is that Microsoft had a ton of cash, and they were using it for some large acquisitions.

Apple has more cash/liquid assets now than it has in years, possibly ever. So if it sits there, its poor business. I doubt it'll sit there for long. More likley Apple will try to do something big, maybe a buy out, a new project/product launch, new facilities, etc. Or, next quarter, they might simply have invested the money into more long-term assets.

Also, Navision wasn't a 1.3B company. Microsoft paid 1.3B for it, there's a big difference there.

By StevoLincolnite on 4/22/2009 11:36:58 PM , Rating: 2
Having cash on hand allows a company to fall on it in tough times, When the Xbox was originally conceived Microsoft lost Billions, which has now been made up for. (I think.).

Also worthy to mention is that both Microsoft and Apple have more income than some countries governments around the world, even more cash on hand.

Having allot of cash on hand also allows for aggressive advertising, and acquisitions as well as product launches where they might need to cover warranty and pay for other things.

By xRyanCat on 4/23/2009 9:04:28 PM , Rating: 2
Microsoft hasn't recuperated their losses on the original Xbox, but the Xbox 360 division did see profit a few quarters ago.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki