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Apple’s bottom line up 94%

- April 25th, 2012

 iphonewhite

Apple shareholders are certainly in a party mood after Apple announced results for its fiscal 2012 second-quarter that ended March 31, 2012. With their net profits almost doubling over the same time last year, quoting Robert Plant of Led Zeppelin fame, “it makes me wonder.”

For Apple shareholders, the stairway to anywhere is certainly paved with gold, with Apple recording a whopping net profit of $11.6 billion on quarterly revenues of $39.2 billion, compared to last year, which were $6 billion and $24.7 million respectively.

If you equate that to profits per diluted share that amounts to $12.30 almost the same as RIM’s (Research in Motion’s) stock price. Scary!

Even in the land of shrinking margins Apple was still able to maintain an overall gross margin of 47.4% up 6% from a year ago in the same quarter. Interestingly enough almost 2/3 of that revenue came from international sales, which appears to continue to see growth, especially in China.

So where did all the revenue come from?

 

35 Million iPhones Sold

“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Tim Cook, Apple’s CEO. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”

Looking at the unit growth year-over-year in percentages really puts things into perspective and is equally impressive. iPhone sales grew by 88%; the iPad’s, 151%.

Mac sales also grew, but only by 7%, which is equivalent to 4 million units. What was surprising are the iPod numbers.  They still sold a respectable 7.7 million of them, but that represented a 15% decline in units compared to the same period last year.

New iPhone Not So Soon?

So there are few things that actually make me wonder. First, with sales of iOS devices being so brisk, save for perhaps the iPod touch I wonder what incentive there would be to expedite the release of the next-generation iPhone. You still hear people say,  “oh I’m waiting for the iPhone 5,” in fact a good friend of mine yesterday said, “My 3GS doesn’t cut the mustard anymore, but I think I’ll wait just a little while longer – for the ’5′.” Furthermore, I discovered that a number of first-time iPad users have recently picked up the iPad 2, whereas a number of existing users I chatted with opted for the “new” iPad. Now of course were just talking about a few people here and it’s not necessarily a sample that would be representative of an entire population.

However, it appears to me with sales numbers like this, that Apple can still get a lot more mileage from the iPhone 4S and even the iPad 2, which leads me to believe that we may not see a next-gen handset until the Fall or possibly even later.

The only thing that I’d like to see would be an iPad with more storage capacity. It’s not that I’m suggesting that iCloud storage is not a good thing, it is; but with everything going HD we’re going to see some mighty big files, which can suck up 64GB very quickly.

Let the rumor mills fly!

 

Listen to the Results

In case you’re interested, Apple’s Financial Results Conference Call Recording is available for audio streaming for the next 2 weeks. You will need an iOS device running iOS 4.2 or above, any Macintosh running OS X 10.5 or later or a PC running at least QuickTime 7.

Greg Gazin is the Real Canadian Gadget Guy.

Follow me on Twitter @gadgetgreg.

 

 

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4 comments

  1. smv | April 25, 2012 at 11:33 pm

    Thanks for the creative content – so much more enjoyable that just reading a bunch of numbers and stats! I know a few people who are waiting for the iPhone 5 – the very people who encouraged me to get my first iPhone – the iPhone 4. How long will they have to wait?

  2. Greg Gazin | April 25, 2012 at 11:53 pm

    Hi smv. Creative Content? You must be a Led Zeppelin fan! :)

    iPhone 5 When? That’s the $64,000 question. We don’t know, but i doubt it won;t be any earlier than the fall, but I don’t have a crystal ball.

  3. internet marketing | May 19, 2012 at 12:26 am

    Speaking of Macs, those sales were also on the low end of estimates and grew just 7% over the year-ago quarter. Cook said one major reason was that Q2 2011 was a big quarter for Macs. Sales grew 28% in that quarter as the rest of the PC industry posted single-digit gains.

  4. www.ipadstand.co.uk | October 2, 2012 at 4:28 am

    Good prediction Greg, just on the cusp with it coming out last week. PS I liked the stairway to anywhere quote, I must be a Led Zeppelin fan too.

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