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.