Apple Fourth Quarter Earnings – Profit Driven By IPhone and MAC Sales
Apple’s fiscal fourth-quarter profit rose 47% to $1.67 billion, on revenue of $9.87 billion. Sales of Macs and iPods shot up in the company’s fiscal Q4, which ended September 26.
In the meantime here are super numbers: 3.05 million Macs and 7.4 million iPhones sold. iPod sales down 7 percent.
Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78.
Apple’s earnings report comes just hours after Verizon and Google previewed their forthcoming assault on the iPhone, the new Droid device, which is powered by Google’s (GOOG) Android open-source mobile operating system.
Fueled by the 3GS refresh , over 7.4 million iPhones were sold over the quarter, nearly matching the raised estimates of analysts, some of whom were predicted about 7.5 million sales.
Apple saw sales of its non-touchscreen iPod drop 8% compared to the same period last year, highlighting the move towards converged media players like the iPhone and iPod Touch.
During Apple’s Q4 earnings call today, a question was asked about how Apple viewed its increased competition for the iPhone in the coming holiday season. In particular, it was asked how Apple views all the new Android phones coming out. Apple COO Tim Cook made Apple’s stance very clear: They’re still catching up with the first iPhone.
In a statement, CEO Steve Jobs said they sold a record number of Macs and iPhones during the quarter. Apple sold 3.05 million Macs; 10.2 million iPods and 7.4 million iPhones. In the year-ago period, Apple sold 6.9 million iPhones and Wall Street was expecting sales of about 7.5 million, Reuters reports . In September, Apple reported sales of more than 30 million iPhones to date, which some analysts say translated into about 3.5 million so far for the quarter.
Apple weathered the economic meltdown better than other computer companies, giving it a running start when PC sales grew in the quarter. Apple had also updated its Mac operating system and refreshed its Macbook Pro line . Apple sold 3.1 million Macs, a 19 percent rise from the same period a year ago, which Apple attributed in part to more students buying Macs for school.
In recent months, Apple has seemed immune to the overall moves of the market – consistently defying predictions that the recession would stifle appetite for its high-cost products.
Apple said its outlook for the current quarter would be well below what analysts are expecting, but the company traditionally gives extremely conservative guidance. Wall Street shrugged off the estimate and sent the company’s shares up $13.38, or 7.1 percent, to $203.24 in extended trading. The shares had closed regular trading at $189.86, up 1 percent on the day.
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