Apple reports 2011 Q4 earnings: $6.62b profit, $28.27b revenue, Macs up 26%, iPhones up 21%, iPads up 166%, iPods down 27%
Apple’s 2011 fourth quarter financial results have been posted, and for the first time in a long time they have not met Wall Street expectations. Apple posted a $6.62 billion profit on $28.27 billion in revenue. Compare this to one year ago, that’s up from a profit of $4.31 billion on $20.34 billion in revenue.
Here’s the break down by product category. Apple sold 4.89 million Macs during the quarter (representing a 26 percent unit increase over the year-ago quarter); 17.07 million iPhones (representing a 21 percent unit growth); 11.12 million iPads (representing a 166 percent unit growth); and 6.62 million iPods (representing an 27 percent unit decline).
Why the low figures, especially in the iPhone department? Analysts are blaming the late introduction of the next iPhone (the iPhone 4S) and the fact that it wasn’t a totally redesigned iPhone 5. Though the numbers didn’t reach expectations, newly appointed CEO Tim Cook exuded optimism in a press release. “We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion. Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.” Apple did sell over four million iPhone 4S devices in just three days, so to say the product launch hurt the company would be downright false. Following the earnings announcement, Apple stock (which hit an all-time high of 422.24 today) fell 28.19 (-6.68%) after hours.
Looking ahead to the first quarter in 2012, Apple CFO Peter Oppenheimer expects revenue of about $37 billion and diluted earnings per share of about $9.30. Let’s see if they can get things back on track next time.
Apple reports 2010 Q4 earnings: “highest revenue and earnings ever”; Steve Jobs calls out Google & RIM
As 2010 nears its end, it’s time for companies to share how well (or poorly) they performed during the fourth quarter of the year. As is the norm for Apple, Inc., Q4 has been another record breaker for them. Apple posted a record revenue of $20.34 billion and net quarterly profit of $4.31 billion. Compare this to one year ago, that’s up from a revenue of $12.21 billion and profit of $2.53 billion. Says CEO Steve Jobs: “We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings-both all-time records for Apple. iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year.”
Now let’s break it down by product category. Apple sold 3.89 million Macs during the quarter (representing a 27 percent unit increase over the year-ago quarter); 14.1 million iPhones (representing a 91 percent unit growth); 9.05 million iPods (representing an 11 percent unit decline); and 4.19 million iPads were sold, succeeding the number of Macs sold! That’s some crazy stuff right there. And as for Jobs’ “hobby” that is Apple TV? The new model sold 250,000 units over the course of its first 18 days on sale.
Looking ahead to the first fiscal quarter of 2011, Apple CFO Peter Oppenheimer expects revenue of about $23 billion and diluted earnings per share of about $4.80. Saying this was a tremendous quarter for Apple is a huge understatement.
Normally this is where the Apple quarterly earnings post would conclude, but El Jobso couldn’t contain his excitement over the record breaking numbers so he decided to jump onto the conference call (listen to it here) and share some thoughts. Charged thoughts on the competition. Some choice quotes:
On RIM’s business model: “[iPhone] handily beat RIM’s most recent quarter. We’ve now passed RIM and I don’t see them catching up with us in the foreseeable future. They must move beyond their area of strength and comfort into the unfamiliar territory of trying to become a software platform company. I think it’s going to be a challenge for them to create a competitive platform and to convince developers to create apps for yet a third software platform, after iOS and Android. With 300k apps on Apple’s app store, RIM has a high mountain ahead of them to climb.” “I think at least now it’s a battle for developers, and a battle for the mindshare of developers, and a battle for the mindshare of customers, and I think right now iPhone and Android are winning that battle.”
On Google’s Android “openess” & fragmentation: “Google wants to characterize Android as open, and iOS and the iPhone as closed. We think this is disingenuous. Unlike Windows, which has the same interface on every machine, Android is very fragmented. Compare this with iPhone, where every interface is the same.” “Twitter client TwitterDeck recently launched their app for Android. They reported that they had to contend with more than 100 different version of Android software on 244 different handsets. The multiple hardware and software iterations presented developers with a daunting challenge.” “We think this open versus closed argument is a smokescreen that hides the real question: What’s better for users, fragmented versus integrated?” “We are very committed to the integrated approach, no matter how many times Google characterizes it as closed, and we believe that it will trump the fragmented approach, no matter how many times Google characterizes it as open.”
At this time last year Microsoft reported its first annual sales decline, ever. Things are definitely looking up in 2010 for the company that built Windows. Today Microsoft posted its fourth quarter earnings and right off the bat you can see how the 175 million Windows 7 licenses (sold to date) have helped the company cash in a ton of the green stuff. Microsoft posted a record revenue of $16.04 billion for the fourth quarter ended June 30; that’s a 22 percent increase over the year-ago quarter. Profits reached a high of $4.52 billion. For fiscal year 2010, Microsoft posted $62.48 billion of revenue and $18.76 in annual net income. Says Microsoft CFO Peter Klein, “This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum. The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion.”
Check out the Q4 revenue breakdown by category. Windows and Windows Live racked in $4.55 billion (that’s a 43.5 percent increase from last year). The Microsoft Business Division (which includes Office sales) scored $5.25 billion (a 15 percent increase). The Entertainment and Devices Division (which includes Xbox 360, Zune, and Windows Mobile) picked up $1.6 billion (a 27.3 percent increase). However there was a quarterly operating loss of $172 million. The axing of Kin resulted in a $251 million increase in costs. The Online Services Division (which includes Bing) brought in $565 million; online advertising revenue increased by 19 percent. This category was also in the red, reporting a quarterly operating loss of $696 million. Bing continues to gain marketshare against search giant Google. Last, the Server and Tools Division (which includes Window Server, SQL Server, and Enterprise CAL Suites) brought in $4.01 billion (a 17 percent increase).
Chew on this: 1.5 million Xbox 360 consoles were sold this last quarter and over 25 million people have signed up for Xbox Live. If the launch of Windows Phone 7 is a success and Kinect for Xbox 360 catches on with gamers, Micro$oft might just be able to pull themselves out of the red that the Entertainment and Devices Division has been stuck in for far too long.
The third quarter of 2010 has come to a close. And you know what that means: Apple gets to flaunt how much money its racked in thus far. Yesterday Apple posted its Q3 earnings and–you guessed it–it was another record quarter for the tech company. Apple posted a $3.25 billion profit on $15.7 billion in revenue. Compare this to one year ago, that’s up from a profit of $1.83 billion on $9.73 billion in revenue. Says CEO Steve Jobs: “It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4. iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year.” (Emphasis added, of course.)
Now let’s break it down by product category. Apple sold 3.47 million Macs during the quarter (representing a 33 percent unit increase over the year-ago quarter); 8.4 million iPhones (representing a 61 percent unit growth); 9.41 million iPods (representing an 8 percent unit decline). This is the first quarter that includes iPad sales, so how did they do? 3.27 million iPads were sold, nearly matching the total amount of Macs sold. Boom. And here’s an interesting stat: international sales accounted for 52 percent of the quarter’s revenue.
Looking ahead to the fourth quarter, Apple CFO Peter Oppenheimer expects revenue of about $18 billion and diluted earnings per share of about $3.44. Antennagate or no Antennagate, Apple isn’t going anywhere people. Job(s) well done.
As another quarter of the year flies by, Apple posts its positive earnings. Check it: Apple posted revenue of $3.07 billion profit on $13.5 billion in revenue. (Compare this to one year ago, Apple posted revenue of $9.08 billion on $1.62 billion in revenue.) Says Steve Jobs: “We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent.”
Here’s a breakdown of each product category. Apple sold 2.94 million Macs during the quarter (representing a 33 percent unit increase over the year-ago quarter); 8.75 million iPhones (representing a 131 percent unit growth); 10.89 million iPods (representing a 1 percent unit decline). Since the iPad was just released into the market, it’s too early to tally those numbers. But overall, Apple has done it yet again! Money in the bank, ya’ll. Jobs looks to the future: “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.” Cough–iPhone 4–cough.
The stock market responded graciously to the earnings announcement. Apple stock (APPL) closed at an all-time high of 259.22, jumping nearly six percent from the previous day.
Apple recently announced their first quarter financial results and per usual, they made quite a hefty profit. $3.38 billion to be exact (or $3.67 profit per share). They brought in revenues of $15.68 billion. Note that these numbers are up from last quarter’s profit of $2.26 billion on $11.88 billion in revenue. More to the point, this is the best quarter they have ever had. Let’s break it down by product: Apple sold 3.36 million Macs (representing a 33 percent unit increase over the year-ago quarter), 8.7 million iPhones (representing 100 percent unit growth), and 21 million iPods (representing an eight percent unit decline). No surprise there; iPod sales have been declining for some time now. Note that this decline factors general iPod sales; iPod touch sales were up 55 percent.
According to the earnings PR, “The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about.” *Cough–Apple Tablet–cough.* Sorry, I was just clearing my throat. Might as well throw in a possibility of seeing the next iLife, iPhone OS 4.0, and maybe even witness AT&T’s iPhone exclusitivity fall by the wayside to Verizon. Remember to check back here tomorrow night for all Apple announcements.
Every quarter seems to surpass the last financially for Apple. With Steve Jobs at the helm, what else more could you expect? The man is an inspiration, and his company is his vision. “Apple at the core, its core value, is that we believe that people with passion can change the world for the better.” Watch as Steve Jobs (in shorts!) motivates the industry in a video captured about ten years ago when he returned to Apple.
Today Apple held their fiscal 2009 thrid quarter conference call with investers and analysts. Apparently Apple had the “best non-holiday quarter [in terms of] revenue and earnings.” From their official press release:
The Company posted revenue of $8.34 billion and a net quarterly profit of $1.23 billion, or $1.35 per diluted share. These results compare to revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share, in the year-ago quarter. Gross margin was 36.3 percent, up from 34.8 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter’s revenue.
Apple admitted that “we expect traditional MP3 players (read: iPod classic, nano, and shuffle) to decline over time as we cannibalize ourselves.” Basically, Apple points out here that all iPod models (except for the touch) are “walking dinosaurs.” Apple sees the iPod touch and iPhone continuing to dominate the market well into next year, while the traditional iPods will continue to decline in sales. More from the offiicial press release:
The Company sold 10.2 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. Quarterly iPhones sold were 5.2 million, representing 626 percent unit growth over the year-ago quarter.
If you’re wondering about Mac sales: Apple sold 2.6 million Macintosh computers during the quarter, representing a four percent unit increase over the year-ago quarter.
Other notable mentions include…Apple on its relationship with AT&T: “I think it’s an excellent relationship and we’re very happy with it.” …Apple on the netbook rumors: “At this point we don’t see a way to build a great product for this $399, $499…for this kind of pricepoint unit. Some customers, maybe many customers buying these become disappointed and disenchanted buying these.” …Apple on the recent tablet rumors: “…without discounting anything for the future, I think most customers buying a portable want a full-featured notebook.” And “many people won’t be happy” with the crappy experience of a netbook, so Apple is “only going to play in something that’s very innovative that we’re very proud of.”
The title of the official press release summarizes it best: Apple Reports Third Quarter Results – Best Non-Holiday Quarter Revenue and Earnings in Apple History. Way to go, Apple!