Apple 3Q Profit Up 15 Percent On iPhone Sales

SEATTLE (AP) -- Apple Inc., the closest thing the tech industry has to a luxury brand, said Tuesday its profit jumped 15 percent in the most recent quarter despite the recession. Sales of Mac computers grew while the rest of the personal-computer industry shrank.

The company, which recently welcomed CEO and co-founder Steve Jobs back from a six-month medical leave, said earnings in the quarter that ended June 27 rose to $1.23 billion, or $1.35 per share. Apple's profit was $1.07 billion, or $1.19 per share, in the same period last year. Sales increased 12 percent to $8.34 billion from $7.46 billion in the year-ago quarter, which is the third in Apple's fiscal calendar.

Apple beat Wall Street's forecast on both counts. Analysts were expecting Apple to earn $1.17 per share on $8.20 billion in revenue, according to a Thomson Reuters survey.

"In a better economy I think we would have sold even more," Apple Chief Financial Officer Peter Oppenheimer said in an interview.

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Apple said it sold more than 5.2 million iPhones in the quarter, more than seven times what it sold in the 2008 quarter, thanks to a newly released version of the device.

Apple's Mac computers also bolstered results. Apple sold 4 percent more Mac computers than a year ago. Meanwhile, researchers recently reported a 3 percent to 5 percent decline for the overall worldwide PC market in the same period.

The only weak spot was Apple's iPod line. Unit sales fell 7 percent. Oppenheimer told analysts on a conference call that such declines are to be expected as Apple "cannibalizes" iPod sales by offering similar features on the iPhone -- the cheapest of which is now $99, plus a monthly service contract.

Apple's revenue increased in every region, including the U.S. and Europe. Worldwide retail store revenue increased 4 percent from a year ago.

Shares of Cupertino, California-based Apple jumped $3.45, or 2.3 percent, to $154.96 in after-hours trading, after slipping 91 cents to close at $151.51.

Comments

[Sundialsvc4]

It is a fine product, well-designed well-built and well-marketed.

To the many thousands of people who did it, "here's a rose" @>-+--- for a job well done.

And oh by the way, the competitors are coming fast, and they're humming a tune from "Chess" (you know the one... "make 'im wanna change 'is name...") as they go. Better keep moving.

[chinationreport]

A young Chinese worker for iPhone machines committed suicide after his home was raided by security for losing one of iPhone unreleased prototypes­...Really tragic! http://www.nuzcom.com/apple-worker-commits-suicide-after-losing-new-iphone-prototype

[Sundialsvc4]

No kidding ...

[plaidsportcoat]

APPLE = Thanks so MUCH for encouraging Chinese to be slave-masters!
BOYCOTT APPLE!!

[ohiodem250]

It's too bad they're increasing the speed of the 3GS by diverting bandwidth from the original 3G. The day the 3GS went to market the internet performance of my 3G immediately went down. Any other 3G users experience the same?

[aristippe]

prove it

[Harrier]

If you thing about it from Apples perspective: As the Ipod market matured and sales began flattening, the company invested in computers. Since the cost of the computers they sell is 5 times the price of an iPod, so is the profit. When you factor in the OS, you see that a small increase in market share in the PC market means massive increases in profitability for the company.

[ILoveTexas]

Apple's iPod sales flattening? I doubt it... People are just waiting for the new iPod touch that is supposed to be coming out soon.

[Harrier]

We it's good to know that there are companies making a profit. The only problem I see is Apple manufactures everything in China. Still a nice profit at a time when most are laying off employees to endure this depression.

[berensma]

Yes, can Apple please now make its email service work again? Every time a new iphone comes out, the email is messed up for 3-4 months...

[Perry Clease]

Can you elaborate on that statement? I have not experienced that problem, nor have I heard of it until now. I am not saying that you are not having a problem, just trying to help you solve it.

[ILoveTexas]

I'm not having any problem with e-mail on my Mac Pro, MacBook, or iPhone 3GS. All's well here.

[toxicbrainpoison]

Yeah its easy to profit when you have sweatshop labor

[KarateKid]

Where are all the haters tonight? Banging their heads against the wall, looking at their iPhone killing Pre.

[ILoveTexas]

I was actually considering the Pre (for a second). Then common sense took over and I got an iPhone. LOL

[Meet Danet]

Apple rules!

[Tyrione]

The iPhone sales were expected. The real surprise was the blow out of Mac sales.

[ILoveTexas]

I surprised my wife with a new iPhone 3GS for her birthday. Also, got one for myself. She could not be happier and she lets me know every once in a while that she loves her iPhone. LOL

[mero909]

Good phone. *thumbs up*