Apple Reports Strong Earnings on iPhone, iPad, Mac Sales

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Paul Thurrott

Windows IT Pro

InstantDoc ID #125637

Apple continued its torrid sales pace in the second quarter of 2010, with strong sales of the iPhone, iPad, and Mac product lines driving record profits. Only the iPod line has seen any slowdown, and Apple continues to be immune to the industry's economic conditions despite its premium pricing model.

"It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple's history with iPhone 4," said Apple CEO Steve Jobs, refusing to back down in the face of mounting criticism for that product. "iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year."

In the quarter ending June 26, 2010, Apple earned a profit of $3.25 billion on revenues of $15.7 billion. Those revenues matched expectations, but Apple's net profit was a record for the company, and both are significantly higher than the results from the same quarter a year ago.

Apple sold 3.47 million Macs in the quarter, a new quarterly sales record. Based on preliminary PC market share figures, that figure puts the Mac at just over 4 percent worldwide market share for the first time in almost 15 years.

The company sold 8.4 million iPhone smartphones in the quarter as well, though most of those were the previous-generation iPhone 3GS and 3G models. Apple's next-generation iPhone, the iPhone 4, appeared very late in the quarter, and although Apple has sold 3 million units so far, the product has been tarnished by an unusually high number of hardware and software defects. Apple has done little to actually fix the problems, though its marketing assault against the complainers is perhaps unprecedented.

Apple's new iPad is off to a very strong start with 3.27 million units sold in the quarter. The only bad news for Apple (and it's minor) is that its iPod lineup is continuing a steady decline. Apple racked up 9.41 million in iPod unit sales in the quarter, but that's down almost 9 percent from the same quarter a year ago. The good news? Revenues in the iPod business were up slightly, as customers have gravitated to the iPhone-like iPod touch model. In fact, iPod touch unit sales were up 48 percent year-over-year.

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http://www.zdnet.com/blog/btl/windows-7-corporate-upgrade-cycle-propel-microsofts-fourth-quarter/37092?tag=mantle_skin;content

<The company reported net income of $4.52 billion, or 51 cents a share, on revenue of $16.04 billion.>

Now Apple

<In the quarter ending June 26, 2010, Apple earned a profit of $3.25 billion on revenues of $15.7 billion>

So, with 1/30 of Microsoft Marketshare (according to Mr. Selective Argument Turd himself) and about a third of its employees, Apple has similar income and profit.

IT MUST SUCK SO BADLY BEING A MICROSOFT APOLOGIST!!

The Real ChuckD7/23/2010 2:58:45 AM

@ PatriotB60077/22/2010 3:03:36 PM

Wow, so now I have to make due with an argument that was valid 10 years ago?

Now wonder you Windows-adepts were so blown away by Vista and 7: you're just living in the past.

The Real ChuckD7/23/2010 2:53:52 AM

@The Real ChuckD:
"<Living without Microsoft, well what other choice is there, Ubuntu? >
No. Apple."

Tell that to the judge in the MS antitrust trial of 10 years ago. In order to qualify Microsoft as a monopoly, he had to explicitly *exclude* Apple from the market, saying that they were not an alternate to Windows.

I guess since you think Apple is a perfectly valid alternative, that you must also feel Microsoft is not a monopoly and thus should be able to return to its previous business practices? (Practices which Apple employs at every turn, btw?)

PatriotB60077/22/2010 3:03:36 PM

@Gordon:

Have you been into PC World recently? I think you might be in for a big shock.
Re: Right Clicking, just plug in a mouse of your choice and right click yo your hearts content.
Same with the keyboard.
You find the Mac interface frustrating probably because you're used to upside-down and backwards Windows. Macs are much easier and intuitive. Anything that has a shut down menu hidden under a 'Start' button has got to be full of similarly confusing issues. WP7 looks like it suffers from a similar poorly thought out UI.

Klimecki7/22/2010 12:25:28 PM

Looks like Hell just froze over. Paul's partner in anti-Apple FUD, Mary Jo Foley, just bought an iPad.

And she's loving it.

Paul, if she can 'get it', why don't you?

http://www.zdnet.com/blog/microsoft/i-confess-i-bought-an-ipad-and-so-far-i-love-it/6912

Klimecki7/22/2010 12:10:48 PM

"Seems the Apple trolls have a hard time accepting the truth? lol! Great article Paul."

You mean the truth that Apple had its best quarter ever?

Its Paul who seems to not be able to accept the fact that Apple has done so well over the past few years, and has to throw in a jab whenever he can.

17/22/2010 10:38:43 AM

The idea that Apple should drop the Mac is just silly. It is second to the iPhone in revenue generation at 4.4 billion for the most recent quarter and is growing at over 30% year over year. Anyone one that would flush that type of revenue with that growth would be an idiot.

Robinson7/22/2010 10:06:10 AM

10 better than 19 is what i meant to say

Gutierrez7/22/2010 9:54:54 AM

@S

When you sell a crap load of computers with high markup and you sell more year over year why would you stop...Dont drink the market-share cool aid..Its better to sell 10 computers with huge markups and 9 with very low low profit...

Gutierrez7/22/2010 9:54:06 AM

Macs are dead. Apple should just become a cellphone/tablet vendor at this point which is the only area they have a future.

S7/22/2010 6:07:08 AM

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