Apple Posts $11.6 Billion Quarterly Profit on Sales of $39.2 Billion

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The company sells nearly 12 million iPads during its fiscal second quarter.

Apple blew past expectations by reporting Tuesday that it earned $11.6 billion in its fiscal second quarter on revenue of $39.2 billion.

On a per-share basis, Apple earned $12.30, up from $6.40 a year earlier and much better than the $10.02 analysts had predicted.

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Apple shares were surging 7 percent, or $38, in the after-hours session after having lost 2 percent to $560.28 during regular trading.

In the year-ago quarter, Apple posted a $6 billion profit on $25 billion revenue.

One slight disappointment in the earnings release was that Apple sold slightly less than 12 million iPads during the quarter; that's a 151 percent increase over a year ago, but some analysts were expecting something closer to 13 million, given the astonishing popularity of the tablet computer.

Apple CFO Peter Oppenheimer said during a conference call with analysts that there were only about 2 million iPads in inventory, which is below the company's target of four to six weeks worth of sales, so the insinuation is that there certainly is no shortage of consumers who plan on purchasing an iPad in the weeks ahead.

Apple said it sold 35.1 million iPhones during the quarter, an 88 percent leap over last year, and 4 million Mac computers, up 7 percent. Apple sold 7.7 million iPods, which was 15 percent lower than the same quarter a year ago.

Also on the conference call, CEO Tim Cook said China contributed $7.9 billion in revenue during the quarter, more than three times what it contributed a year ago even though the iPad has not yet shipped to Greater China. "It's mind-boggling that we could do this well," he said.

 

 

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