Apple has completely blown out their quarterly earnings report this afternoon, on the back of strong growth in China and record iPad sales.
Profits for the quarter were $7.31 billion, up 125 percent year-over-year, and revenue was $28.57 billion, up 82 percent YoY.
Following the report, Apple, which closed the day at $376.85 jumped to as high as $405 per share, a new all-time high.
Additionally, the company confirmed it will be releasing Mac OS X 10.7 Lion tomorrow, as reported earlier.
iPhone sales jumped 142 percent to 20.34 million units (a record) and iPad sales jumped to 9.25 million units (also a record).
Says CEO Steve Jobs:
We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent. Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.
Sales in China, and the Asia-Pacific region in general, had the most explosive growth with COO Peter Oppenheimer saying overall sales in China are up 600 percent “and just beginning.”
A few other figures of note from the report was weak Mac sales (3.95 million units, up 13.8 percent YoY), the continued decline in iPod sales (down 20 percent to 7.54 million units) and an overall gross margin of 41.7 percent, huge for any industry.
Apple is also expected to release the iPhone 5 in September.
Result for: earnings
Marvell Technology posted weak earnings on Friday, leading to a 10 percent dip in the company’s shares.
Perhaps more notably, Marvell’s report highlighted the continued struggles of RIM, maker of the BlackBerry smartphones.
Marvell makes the application processors in BlackBerry devices.
Overall revenue in the wireless and mobile markets fell 13 percent year-over-year and CEO Sehat Sutardja said the decline was due to the fact that RIM “was shifting entry-level smart phones, an area where we do not currently participate.”
The shift came as a shock to most, although one analyst explains:
Demand for low-end smart phones is rapidly outpacing growth in the high-end segment in emerging economies given their lower cost.
RIM Blackberrys are particularly attractive in this market given the Blackberry Messaging service which allows free Blackberry-Blackberry messaging and lowers the total cost of usage.
Nielsen reported this week that Android had taken the crown as top smartphone OS in the U.S. with 29 percent share, followed by iOS and BlackBerry at 27 percent each.
Result for: earnings
Sonic Solutions has announced today that it will acquire digital media company DivX, merging the operations of the company into its own.
Under the terms of the agreement, Sonic will pay about $326 million in cash and stock, with DivX stock holders receiving 0.514 shares of Sonic and $3.75 cash per share. DivX closed the day trading at $8.79, after closing at $6.95 on Tuesday.
Sonic says the deal should close in September, and says the deal will possibly double its EPS (earnings per share) for the fiscal year that starts in April 2011.
For over 20 years, Sonic has provided the software used to press and distribute most DVDs, but the company recently began an expensive endeavor into downloadable content, teaming up with Best Buy for the CinemaNow online movie service.
With DivX, the company should be able to expand its market, as DivX tech is already embedded in over 300 million devices worldwide, ranging from smartphones to Blu-ray players and HDTVs.
“Our studio, storefront, and consumer electronics partners agree: they want a clear and efficient path to deliver premium content to their customers,” says Dave Habiger, president and CEO of Sonic Solutions. “The combination of Sonic and DivX promises to be the foremost provider of platforms, tools, and technologies for the efficient delivery of premium video entertainment to virtually any type of consumer electronics device. We expect DivX’s deep technology and broad deployment in the CE and mobile areas to give us significant leverage as we expand and enhance our RoxioNow premium entertainment platform.”
