Apple Reports Record Quarterly Revenues and Earnings; But Weak iPhone Sales

Apple has posted record revenue of $10.17 billion and record net quarterly profit of $1.61 billion for its fiscal 2009 first quarter ended December 27, 2008. Its the first time Apple has crossed quarterly revenues of over $10 billion.

However, Apple sold only 4.36 iPhones which is lower than the consensus of 5 million iPhones.

But 13.7 million iPhones were sold in 2008 thus beating Apple's own estimates of 10 million iPhones by a huge margin. 

Apple had sold 2.3 million iPhones in the first quarter of last year, a 88% jump in iPhone sales. However, its much lower than the staggering 6.9 million iPhones that were sold in the fourth quarter of 2008. The iPhone sales numbers were also below the consensus of 5 million iPhones.

The reason for the superb fourth quarter can be attributed to the launch of the 2nd generation iPhone, iPhone 3G. While the lower than expected sales of iPhone in the first quarter of fiscal 2009 were probably due to very strong iPod Touch sales.

If you are of the opinion that the lower than expected sales numbers would result in a price cut, you are mistaken as Apple still feels "years ahead of the competition," though Tim agreed that the iPhone's price is "elastic" like iPods, as opposed to the static Mac pricing.

Excerpts from Apple's earnings announcement:

Apple Reports First Quarter Results
Best Quarterly Revenue and Earnings in Apple History
iPod Sales Set New Record

CUPERTINO, California—January 21, 2009—Apple® today announced financial results for its fiscal 2009 first quarter ended December 27, 2008. The Company 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. Gross margin was 34.7 percent, equal to the year-ago quarter. International sales accounted for 46 percent of the quarter’s revenue.

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone™ and Apple TV® over their economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $11.8 billion of “Adjusted Sales” and $2.3 billion of “Adjusted Net Income.”

Apple sold 2,524,000 Macintosh® computers during the quarter, representing nine percent unit growth over the year-ago quarter. The Company sold a record 22,727,000 iPods during the quarter, representing three percent unit growth over the year-ago quarter. Quarterly iPhone units sold were 4,363,000, representing 88 percent unit growth over the year-ago quarter.

“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 Steve Jobs, Apple’s CEO.

“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 to $1.00.”

Congratulations to Apple for record breaking revenues and earnings even in such recessionary conditions.

[via Silicon Alley Insider, Apple]

 

 

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