For those of you that did not catch the Apple quarterly results presentation yesterday, perhaps because you are living on the other side of the world, here is a quick breakdown of the main figures from the biggest quarter in Apple history.
Doubled net income to $7.3 billion
Apple broke all previous records when it comes to sales and earnings yesterday, more than doubling net income to $7.3 billion for the quarter ending 30th June on the back of record sales of $28.6 billion (up 82%), breaking all analyst expectations and sending the Apple stock price in after hour trading up towards the $400 mark.
“We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent,” said Steve Jobs, Apple’s CEO. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”
So what was the driver behind these record numbers you ask.
Apple iPad 2: 9.25 million units sold at $6 billion
You read it right. Apple sold more than 9 million units of the iPad 2 in the recent quarter driving sales worth $6 billion, almost a quarter of their total sales revenue, and almost tripling sales compared to same quarter last year. It does not look like the surge of Android tablets on the market has made much of a dent in the Apple iPad sales.
While Apple is still working on getting supply to keep track with demand for the iPad 2, the situation is looking better as Apple CFO Cook said in the earnings call that in some markets they have been able to catch supply up with demand. Reading between the lines it sounds like they are saying that with better supply that 9.25 million number could have been even higher.
Apple also pointed out that iPad sales are not just driven by Apple fans and the general consumer, but also by companies investing in iPads for their employees to use on their daily work, and that they saw surprising high sales of the iPad to K-12 (schools), outstripping sales of Macs. Sounds like Apple is enjoying getting to the young people, grooming future loyal customers.
iPhone: 20.3 million iPhones sold up 142%
Despite some of us perhaps waiting to see if the iPhone 5 is coming out later this year, sales of the iPhone 4 in the last quarter grew by 142 percent compared to same quarter last year, with 20.3 million units sold worldwide.
These are very impressive growth figures for the iPhone which is seeing increased competition from other smartphones platforms, including Google Android, which claims to be activating around 550,000 devices per day compared to Apple iOS devices at around 367,000 devices per day.
It the coming weeks it will be interesting to see if rumors are true that Apple will be launching not one, but two iPhone models; the all new iPhone 5 as well as an iPhone 4S (or iPhone Lite) that will be targeting the prepaid market where Android handsets are seeing global success.
222 million iOS devices in the market
There are now a reported 222 million iOS devices in the market (iPhone, iPad & iPod Touch), with the recent quarter contributing 33 million units to that number.
$2.5 billion paid to developers
To date Apple has paid out over $2.5 billion to third party app developers. Showcasing the strong growth in iPad and iPhone sales is also a factor in making sure that developers see the benefit in continuing to drive new apps through the different App Stores.
Apps have become an important factor in choosing smartphones for many users out there, and Apple has had a good grasp on that so far by delivering more and arguably better apps for their platform compared to competitors. While not flawless, the Apple model has so far been the best one in terms of developers being able to get their apps to market and monetize them.
What about the iPod? 20% down to 7.5 million
As expected we are seeing a continuous decline in overall iPod sales as both the iPhone and the iPad is taking over. I have earlier reported on why most likely Apple is not concerned over declining iPod sales given the overall performance of their iOS product portfolio.
The quarter just reported on was in fact the first quarter where iPad sales were higher than iPod sales overall.
What’s waiting in Q4?
As always, Apple was more cautious about their forecast for Q4 compared to the results in Q3, but there were a few hints at things to come.
References were made to “future product transition in September” that will impact on the quarter results. What exactly that means is anyone’s guess, but during the Q&A session there was also talk about how growth in iPhone sales had come as a result of developing countries and more carriers, but that there were still more to do as many countries (including China) have a tendency to prefer prepaid and unlocked handsets. Sounds like Apple is strongly hinting at a lower up front cost iPhone.