Apple Earnings Set New Record: Revenue Hits $26 BILLION

A day after Apple CEO Steve Jobs announced he would be taking a medical leave of absence, Apple posted stunning results for the first quarter of 2011.

Apple's revenue and profits both set new records for the company. Revenue reached $26.74 billion for the quarter that ended December 25, 2010 (a 71% increase over last year), and net quarterly profit hit a high of $6 billion.

Expected earnings help put the magnitude of those numbers in perspective: TechCrunch notes, "Well, coming off its best quarter ever in terms of revenue ($20.34 billion in Q4), Apple was projecting $23 billion in revenue for the quarter. The Street, meanwhile, recognizing that Apple always lowballs these numbers, thought revenue would be more like $24.38 billion. The actual number? $26.74 billion."

iPad and iPhone shipments surpassed analysts' expectations, while Mac shipments (4.3 million) and iPod shipments (19.45 million) fell slightly short. In total, Apple reported that 160 million iOS devices have been activated.

Some additional figures from Apple:

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7.33 million iPads during the quarter.

The company did not announce Apple TV sales, though sales reportedly topped 1 million units in December 2010. Apple noted in a press release that "international sales accounted for 62 percent of the quarter's revenue."

After falling slightly during the day on Tuesday, Apple shares (AAPL) increased 4% in after-hours trading.

“We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on," Apple CEO Steve Jobs said in a statement, perhaps foreshadowing the new products--such as the next generation iPhone and iPad--consumers can expect to see later this year.

Comments

[LightShadow62]

11:44 PM on 01/19/2011

Smells like a steaming pile of cooked data to offset the negative effects of Jobs medical leave on the stock price.

[SwimUpstream]

10:01 AM on 01/19/2011

THIS is why there are no jobs in the United States. The sheep clamor to get in line to buy chineze toys.

[Rich Phitzwell]

12:55 PM on 01/19/2011

I was actually a bit annoyed last night thinking about that. If I recall it would add something like $16 to the Iphone to manufacture it here. Im sure if the components were manufactured here it may add up to be a little more but we are talking about a phone that cost them about $150 to manufacture and are sold to V and A for well over $200 and last I heard its sold over $400 to them. Have some patriotism all you American brands and throw us a bone.

[Maschine]

10:24 PM on 01/19/2011

Costs to manufacture have gone down, Costs to the public have gone up. Something is skewed in the new America.

And this is across the board. Think before you buy. Do Nike runners really cost 120 plus, for what , a 30 dollar shoe.

[bangagong]

09:00 AM on 01/19/2011

I'd like to see their tech profits separated from their music superstore profits.

[otop016]

01:37 PM on 01/19/2011

What's a tech profit?

Hardware? Software? Services? Peripherals? Support? Nertworking solutions? Accessories?

[Sundialsvc4]

07:54 AM on 01/19/2011

Very nice. Well done.

Now... remember that the name of this game is, "high technology." Watch your back. They're right behind you and closing very fast.

[Snarkyone]

07:01 AM on 01/19/2011

Gee, if they made their products here in America and paid a living wage they might have only made 10 billion dollars. This is a prime example of what is wrong with this country. Steve Jobs great American success story tells his fellow citizens to pound sand while taking all the jobs at Apple to countries where they can pay the workers $5 a week and force them to live in dormitories to crank out devices that sell for several hundred dollars. Ahh greed, now that's America!

[John Kramarz]

09:20 AM on 01/19/2011

"Steve Jobs great American success story tells his fellow citizens to pound sand while taking all the jobs at Apple to countries where they can pay the workers $5 a week "

ipods, iphones, ipads were never made here, so he isn't taking a job to somewhere else.

but if you want one of the jobs in the USA, get your resume ready:
http://www.apple.com/jobs/us/corporate.html

[SwimUpstream]

10:02 AM on 01/19/2011

Apple was a pioneer in outsourcing US technology jobs.

Deal with it.

[Maschine]

10:31 PM on 01/19/2011

I wouldn't blame Steve. He's an entrepreneur who went with products America didn't have both in quality and technical advancement.. Apple was born at a time when Japan was making quality product with a finesse the American Industry rushed to copy when it woke up.

But then again, alot of Americans didn't support Apple. I was an early adopter of their products including the QuickTake camera, the first digital cam on the market. Did I pay, yes, handsomely. What did I gain, a superior edge in productivity.

Genie is out of the bottle. Now you seem to be paying less for goods, but in fact, you are paying more as a percentage of profit vs. cost. But lets not delude ourselves, US companies were always after the buck. Some just went in search of what they needed to accomplish their dreams.

[Snarkyone]

10:42 PM on 01/19/2011

I wonder what dreams the girls flinging themselves off the roofs of the factories had? Exploitation for massive profits isn't cool no matter how shiny the product. It's bad for everyone except the exploiter.

[olcay]

03:39 AM on 01/19/2011

These companies have made huge profits. Enough profits to buy from American suppliers, but greed prevents them from doing so.Thanks great site !!!

http://www.okultube.com/

[John Kramarz]

09:22 AM on 01/19/2011

they get a lot of their chips from American suppliers.
Those American suppliers though, actually produce their chips in the East.

[SwingingFromCenter]

03:33 AM on 01/19/2011

This is good news.  Black market livers are really expensive these days, so Steve will need the extra money to make the random Asian guy "disappear" in order for a "donor" to be found.

[jonester]

03:04 AM on 01/19/2011

$2k computers being sold during a recession?!?! The tax cuts are working!

[SwimUpstream]

10:03 AM on 01/19/2011

What? The Bush tax cuts were a good thing? Amazing!!

[DRaymond]

02:45 AM on 01/19/2011

I would like to see Apple open a manufacturing plant in the US but until the Yuan is allowed to float on world markets it isn't going to happen,  It is just too darn cheap when you are speaking of products that are all identical and inexpensive to ship

[Snarkyone]

07:02 AM on 01/19/2011

That and what amounts to basically slave wages for it's overseas workers that increased their profit margins.

[Tanker10a]

01:27 AM on 01/19/2011

It's too bad that AAPL pays their employees meager wages.

[SwimUpstream]

10:04 AM on 01/19/2011

You don't have to work there

[concerned joe]

12:11 AM on 01/19/2011

I used to have the utmost respect for Apple and Steve Jobs. In fact I worked for an American company that supplied Apple with electronics in the very early days. That American company helped to build Apple into the giant it is today. Sadly that American company is now gone because Apple and Steve jobs sent all those jobs to China. This trend has been repeated over and over again by other companies and it has decimated entire American industries that used to employ many hundreds of thousands, perhaps millions of workers.


These companies have made huge profits. Enough profits to buy from American suppliers, but greed prevents them from doing so.

I wish Steve all the very best which seems odd since he obviously didn't care one bit about all the Americans who's jobs Apple and other companies sent overseas for a few more pieces of silver.

[Yank in France]

02:24 AM on 01/19/2011

I share your deep concern for the loss of American jobs, which we feel here in Europe too. Manufacturing jobs have moved to China, which itself engages in unfair trade and currency manipulation policies.

But the response belongs to GOVERNMENT, not businesses which are only trying to survive in an increasingly competitive world marketplace. In Apple's case, its rivals are in China or other Asian countries producing equipment at very low cost, so what can we expect them to do.

In the meantime, half of Apple's payroll remains in the United States in the high-paying research and development fields.

We need "fair trade" policies based on reciprocity; otherwise the system does not work.

In the meantime, I am delighted that Apple is creating and producing innovative products, which stands as positive examples of American business practices.

[Maschine]

10:35 PM on 01/19/2011

I agree. Government has allowed the transfer of intellectual property without having the foresight to understand that once that was done, there was no reason for manufacturers, suppliers and producers to keep their business local.

The Far east has proven themselves to have a workforce that is dedicated to something more than themselves. Like Germans they've reached for a level of production that put American companies to shame.

Its topsy turvy but its the reality. Its not going to get any better. Look for chinese companies to setup in the US and start rehiring like Japanese automotive companies have done. Then be happy you have a job .

[jonester]

03:05 AM on 01/19/2011

Totally agree, just got the new Magic Trackpad, it came form Shanghai.

[kilgary]

11:51 PM on 01/18/2011

As a long time Apple shareholder and user, I do wish they would use some of the $30 billion in cash they are sitting on to build a factory or two within the United States. I know the earnings per share would likely go down; but they could still turn a profit plus they would be creating a new user base of tens of thousands of factory workers who currently can't afford to pay for their products.

[WSAY]

12:04 AM on 01/19/2011

They are the largest computer company in the world because they have been smart. Why change that?

[concerned joe]

12:25 AM on 01/19/2011

Have you ever heard of Karma?

They may be on a high now, but it will not last. Unless American companies begin investing in the American worker again the American consumer will turn their back on them as I have. I can live just fine without the latest gadgets.

It's time for the American consumer to learn just how much power they have.

[SwimUpstream]

10:08 AM on 01/19/2011

Because people matter more than profits Gomer

[sve]

11:48 PM on 01/18/2011

For all of you who haven't seen his finest speech, now is a good time to listen to it. Especially considering his fragile health. He gave this speech at the 2005 Stanford graduation. Everything you need to know about him is in it. How to live before you die.

http://bit.ly/4tVNFK

[Jim Shaffer]

11:45 PM on 01/18/2011

One of Americas most successful manufacturers of technology.

MADE IN CHINA

[WSAY]

12:05 AM on 01/19/2011

Sounds like you believe Americans can't compete in a free market.

[concerned joe]

12:27 AM on 01/19/2011

There is no such thing as a free market in todays world.

[Jim Shaffer]

05:32 AM on 01/19/2011

Ha, free market, good name. Means your job can be done over seas more cheaply. Unless the American working class is willing to accept third world wages, of course we can't compete. That's what this economic crisis is reallly all about, push things till they get so bad that American workers will take anything they can get. That's why no investment is going to create jobs, at least for the USA no.

[concerned joe]

12:20 AM on 01/19/2011

The Chinese will be the undoing of companies like Apple. They will soon be beating American companies at their own game. While American companies see their market share steadily decreasing they will realize how big of a mistake they made in giving Chinese companies their technology over the last 30 years.

[Jim Shaffer]

09:18 AM on 01/19/2011

Bigger mistake still allowing them to buy so much of our debt.