Apple Earnings Going Up, Up, Up, Up!

Tuesday, January 26, 2010

iphonespies

Apple reported it’s earnings on Monday, and it is music to the ears of it’s shareholders. CNN is reporting the Cupertino, Calif., company said net income for the quarter ended Dec. 31 surged 50% from a year earlier to a record $3.4 billion, or $3.67 per share, beating analysts expectations by $1.59 a share. Apple announced an incredible 100% year-over-year rise in iPhone sales and a 33% increase in Mac sales helped drive Apple’s results. The company said it sold a record 8.7 million iPhones in the quarter. That’s up 17.6% from the 7.4 million it sold in the previous quarter and double what it sold during the same quarter a year ago. Sales were partially boosted by Apple’s introduction of the iPhone in China last quarter. Here in Canada I witnessed a surge in the number of iPhones in my friends’ families, with many teens and tweens receiving an iPhone for Christmas, now that Telus and Bell have been added as carriers, along with the original carrier Rogers.

In the three-month holiday quarter, iPod touch sales saw a 55 percent year-over-year increase which also represented alot of Christmas presents. Last month, one study found that use of the iPod touch was greater than the iPhone in average use. It is believed the iPod touch could transition youth to the iPhone when they grow older, which exactly predicts what I witnessed this Christmas. The study estimated that just over 40 percent of 58 million iPhone OS devices sold worldwide through September 2009 were the iPod touch.

The only product not showing spectacular results was the iPod, which slumped 8% to a still rather respectable 21 million units last quarter. This is really not surprising considering the iPhone is an iPod, so once people get their hot little hands on an iPhone, an iPod becomes superfluous. Until they use up their storage capablilities in their phone, they will rely on their iPhones as their daily driver music source. The iPod then becomes the backup storage device.

“If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company,” said Apple CEO Steve Jobs in a statement. “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.” No Steve, it is not surprising. And yes, we’re really excited about it too! One more sleep!!

This is an article by the App Machine.