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: oppenheimer
Apple has announced the release of the fourth beta version of its popular iPhone software development kit (SDK).
Apple’s developer website explains:“The fourth beta version of the iPhone SDK includes Xcode IDE, iPhone simulator with Open GL ES support, Interface Builder, Instruments, frameworks and samples, compilers, and Shark analysis tool”. The SDK also promises to improve “Audio Toolbox, NSXML Parser support and redesigned UIFont.”
The announcement came during the second quarter financial results press conference call where Apple executive discussed the SDK and future releases. The company says they have been in contact with over 200 Fortune 500 companies as well as 400 higher education institutions that are applying to become iPhone developers.
Apple CFO Peter Oppenheimer added that the company has already signed up 200,000 developers.
Result for: oppenheimer
After being unveiled a couple of weeks ago at the very consumer attractive price of $199 USD, the iPhone 3G is set to go on sale next month through Apple and AT&T.
According to new reports, it appears however that AT&T is subsidizing the phone, over $400 USD in some cases, just to be able to reap in the benefits of a 2 year contract including data plans.
Oppenheimer financial analyst Yair Reimer writes that as a general rule of thumb, wireless carriers subsidize the price of smartphones by about $200 USD and make it back from expensive data plans. AT&T it appears though, is losing $325-425 for each unit sold and could be buying each phone from Apple for as much $724 USD for the 16GB model.
Piper Jaffray analyst Gene Munster also wrote a report estimating that Apple will make about $466 USD per iPhone. Bernstein Research’s Toni Sacconaghi, in a separate report says he anticipates Apple is selling each phone at $700 USD.
