Apple Sells 35 Million iPhones In Q2, Revenues Rise 59%
April 24, 2012 at 5:24 PM (PT)
In yet another case of WALL STREET deja vu, APPLE reported quarterly results that once again overwhelmed analyst estimates, fueled by the sale of 35.1 million iPHONES in Q2, REUTERS reports. Much of that boom can be attributed to the greater CHINA region, where sales jumped five-fold to the tune of almost $8 billion.
APPLE's Q2 revenue rose 59% to $39.2 billion, better than the average analyst estimate of $36.8 billion. Net income rose to $11.6 billion, or $12.30 a share, from $6 billion, or $6.40 per share, a year earlier. That also outpaced WALL STREET's target of $10.04 a share. Gross margins in the fiscal Q2 climbed to 47.4% from 41.4% a year earlier, surpassing WALL STREET's average forecast of 42.8%.
However, APPLE sold "just" 11.8 million iPADS in Q2, compared with the average forecast of up to 13 million. Nevertheless, the overall results sent the stock up 7% in after-hour trading.
Some investors believed the growing competition from GOOGLE's ANDROID phones eat into its market share -- didn't happen. "There are lower-priced alternatives from the ANDROID world that are becoming more compelling," MORNINGSTAR analyst MICHAEL HOLT said. "The concern was that APPLE might sell more older models to be more competitive. That would have shown up in the gross margin. But aggregate gross margin and average revenue per device show that this hasn't happened."