Tuesday, October 20, 2009

Apple Earnings up on strong iPhone, Mac sales

Apple (AAPL) smashed market expectations for the September quarter with strong sales in its iPhone and Mac lines delivering increased profits.

Mac sales jumped 17% from the same quarter of 2008 to 3.05 million units, 250,000 units above market estimates. iPhone sales rose 7% to 7.4 million, just below the market expectation of 7.5 million units. Notably though Apple said that it was struggling to meet demand for iPhones globally, a suggestion that the figure may be limited by supply as opposed to demand.

Net profit rose to $1.67 billion/ $1.82 a share, up from from $1.14 billion/ $1.26 a share for the September quarter of 2008. The market had been expecting $1.42 a share. Revenue rose 25 percent to $9.87 billion. Gross margin of 36.6 percent, up from 34.7 percent a year ago.

The figures are a huge boost for Apple after many analysts had expected them to take a bigger hit due to the global financial crisis. Apple’s Mac line, still the biggest earner for the company has continued to steam ahead, despite of (or perhaps because of)its premium pricing.

AAPL shares rose 7.5% to $204 in after market trading,smashing its previous price high of $202.96 in December 2007.

Source : http://www.inquisitr.com/43436/apple-earnings/