Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
Customer Service
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Record Apple Earnings Top Wall Street Expectations
Record Apple Earnings Top Wall Street Expectations

By Jennifer LeClaire
January 22, 2009 9:47AM

Bookmark and Share
Apple, Inc. had a record-breaking fiscal first quarter, topping $10 billion in sales for the first time. Sales of Macs and iPods were up, but Apple's iPhone sales were less than expected. An analyst suggested that the iPod touch may be cannibalizing Apple's iPhone sales for customers who don't want AT&T's exclusive and slower data plan.
 

Related Topics

Apple
Mac
iPod
iPhone
iPod Touch
AT&T



What recession? Apple on Wednesday announced its fiscal 2009 first-quarter results with record-breaking numbers. The company topped $10 billion in quarterly sales for the first time and exceeded Wall Street's expectations.

Apple posted record revenue of $10.17 billion and record net quarterly profit of $1.61 billion, or $1.78 per diluted share. These results compare to revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share, in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.

"Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history -- surpassing $10 billion in quarterly revenue for the first time ever," said CEO Steve Jobs.

What's Selling? Everything!

Apple sold 2,524,000 Macintosh computers during the quarter. That's a nine percent growth over the year-ago quarter. The company also sold a record 22.727 million iPods during the quarter, a three percent growth over the year-ago quarter. Quarterly iPhone sales were 4.363 million, an 88 percent growth over the year-ago quarter.

"Our outstanding results generated over $3.6 billion in cash during the quarter," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second fiscal quarter of 2009, we expect revenue in the range of about $7.6 billion to $8 billion, and we expect diluted earnings per share in the range of about 90 cents to $1.00."

Apple's stock, which has taken a beating in recent weeks from speculation about Jobs, his health, and the impact of his decision to take a six-month leave of absence, rose to recover recent losses. Shares were selling around $88 at noon EST.

The Impact of the iPod Touch

Apple reported that iPhone 3G sales have been significantly greater than sales of the first-generation iPhone. During the first quarter of iPhone 3G availability ended Sept. 27, 6.9 million were sold, exceeding the 6.1 million first-generation iPhones sold in the prior five quarters combined. Sales of the iPhone 3G continued to be significant in the quarter ended December 27, with 4.4 million sold.

"The iPhone figures were less than expected. The consensus was that Apple would sell five million iPhones in the fourth quarter," said Greg Sterling, principal analyst at Sterling Market Intelligence. "That's driven partly by the recession and the fact that iPhones are more expensive to own. The AT&T data plans are costly on a monthly basis, and the fact that it's only available from AT&T is also holding people back."

Sterling thinks a significant number of iPod touch sales come from consumers who want the iPhone but aren't willing to switch their cell-phone carriers to AT&T. If that's the case, iPod touch devices could be cannibalizing iPhone sales to some degree, although there are no figures that clearly offer that indication.

"The irony of the iPod touch is that it's always got a high-speed connection, so you are getting the best experience and it's actually quite a bit better than the AT&T 3G network," Sterling said. "You don't have a camera and you can't use some voice controls, but otherwise it's a great device."
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Customer Service
1.   Watson's First Consumer-Facing Gig
2.   Social Media Haters Speak Up
3.   Comcast Customer Service Fiasco
4.   'May I Help You?' Asks Jibo the Robot
5.   Why You Need To Hire a CCO


advertisement
Social Media Haters Speak Up
Survey says, now showing a little love.
Average Rating:
Comcast Customer Service Fiasco
Lessons to be learned for all companies.
Average Rating:
T-Mobile Accused of Bogus Fees
FTC has filed a lawsuit for overcharges.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.