Apple profits up 94% year-over-year to $39.2 billion
In a better-than-expected second quarter, Apple sold 35.1 million iPhones, 11.8 million iPads and 7.7 million iPods. Overall, the company generated $39.2 billion in revenue for the quarter on the sale of 54.6 million iOS devices. Analysts had predicted the company would sell approximately 35 million iphones and earn about $37 billion between Jan. 1 and Mar. 31.
The numbers are down from Apple’s first quarter when the company saw record revenues of $46.3 billion on sales of 37.04 million iPhones and 15.43 million iPads, but up dramatically year-over-year. In the second quarter of 2011, the company sold 18.65 million iPhones and 4.69 million iPads.
Although Apple saw a decline in the number of iPods sold year-over-year, Apple’s new iPad and the iPhone 4S proved to be a strong sellers. The company sold 11.8 million iPads in the second quarter, up 152 percent over the same quarter last year. Consumers picked up more than 3 million new iPads in the device’s first weekend of availability, making it the the strongest iPad launch to date. With these numbers Apple is likely on track to meet the predictions of investment bank Piper Jaffray, which estimated the company would sell 66 million new iPads in 2012.
iPhone sales were buoyed by strong overseas demand. iPhone sales doubled year over year in the Asia-Pacific region and Japan, but China proved to be Apple’s most lucrative overseas market. Apple’s Chinese iPhone sales increased five times year-over-year and its quarterly revenues from greater China increased three times year-over-year to $7.9 billion. Apple has already earned $12.4 billion in revenues in China in the first half of its fiscal year. By comparison Apple’s Chinese revenues were $13.3 billion in the full 2011 fiscal year. Apple Chief Financial Officer Peter Oppenheimer credited the “mind-boggling” increase to pent up demand for the iPhone 4S.
Oppenheimer also revealed 365 million iOS devices to have been sold to date. Strong sales in the quarter have allowed Apple to keep the momentum it gained on Android with the launch of the iPhone 4S. According to Google’s latest numbers, Android has seen more than 300 million device activations to date.
Apple’s net income in the second quarter was $11.6 billion, up 94 percent year-on-year from $5.99 billion. Net sales were up 59 percent, rising to $39.2 billion from $24.7 billion this time last year. Gross margin was 47.4 percent, compared to 41.4 percent in Q2 2011. Overall, 64 percent of the quarter’s revenue came from international sales.
Apple earned $14 billion in cash from its operations. According to a statement provided by chief financial officer, Peter Oppenheimer, Apple is predicting revenues to dip slightly in the third quarter to $34 billion.