iPhones Fuel Apple's $6 Billion Profit In Q2
April 20, 2011 at 5:43 PM (PT)
It seems that APPLE can't lose for winning. Despite lower-than-expected iPAD sales, likely due to production disruptions emanating from the recent earthquake and tsunami, APPLE's Q2 results once again exceeded WALL STREET's expectations as it reported a net product of $5.99 billion, as revenue rose 83% to $24.67 billion. That surpassed expectations for $5.37 in earnings and $23.4 billion of revenue.
Ringing the register the most was the sale of 18.65 million iPHONES, which exceeded the 16 million or so analysts predicted. Also raising eyebrows was the sale of 3.76 million MAC computers, up 28% from a year ago. The high-end products contributed to 41.4% gross margins in Q2 above WALL STREET's average forecast of 39.03%.
The only thing close to a dark lining in the silver cloud was sales of 4.69 million iPADS (there was no breakout of iPADs and iPAD 2s), which didn't meet analyst expectations of 6 million. Yet APPLE CFO PETER OPPENHEIMER told REUTERS that "We sold every iPAD 2 we could make and the demand was stunning."
The lower-than-expected number could also due to the four-to-five week-wait for iPAD2s; APPLE doesn't recognize revenue until its customers receive the products. But experts believe the backlog and the supply problems will be ironed out.
"We can attribute some of the weakness to stocking issues at some of the retail outlets and obviously the supply chain issue in JAPAN," CAPITAL ADVISORS GROWTH FUND portfolio manager CHANNING SMITH said. "Unfortunately, the supply chain issue will likely persist for the coming months but once we get past summer and the supply chain issues are resolved it's all systems go again for APPLE."
And if that's not enough to keep the APPLE sales engine in overdrive, the company plans will begin shipping its new iPHONE in SEPTEMBER.