Apple: We’re Unstoppable!
Apple (NASDAQ:AAPL) sold 35.1 million iPhones in the quarter past, easily beating predictions and easing widespread worries of falling sales that had badly hurt stock prices over the last couple of weeks. International growth helped the most, accounting for 64 percent of the company’s revenue in the quarter ending March.
Backed by the strong sales, profit almost doubled quarter-over-quarter. The company netted a profit of $11.6 billion, or $12.30 per share, up from $6 billion, or $6.40 per share, in the year-ago quarter. Profit beat estimates of $9.86 per share. The $39.2 billion in second-quarter revenue also surpassed expectations of $36.5 billion, and rose 59 percent from $24.7 billion for the same period last year.
Apple has easily beaten consensus estimates in all but one of the last 20 reporting periods.
The 35.1 million in iPhone unit sales, an 88 percent growth over the year-ago quarter, beat average estimates that had pegged expectations between 31 billion and 32 billion. Apple also sold 11.8 million iPads during the quarter, a 151 percent increase, and 4 million Mac computers, which is a 7 percent increase over the year-ago quarter.
“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” Apple chief executive Tim Cook said in a statement. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”
Unit sales numbers were down from the last quarter, but that was to be expected since the holiday period always sees a shopping spike. Apple had sold 37.04 million iPhones, 15.43 million iPads, and 5.2 million Macs in the quarter ending December.
Apple stock had fallen almost 13 percent since hitting an intraday all-time high of $644 on April 10. While some analysts believed the high-growth stock was simply due for profit-taking, others said worries over possible drop in sales in the coming quarters were to blame. Wireless carriers AT&T (NYSE:T) and Verizon (NYSE:VZ) had both announced falling iPhone activations in their respective quarters, adding to worries.
However, Apple has been relying more and more on overseas sales for growth and the confidence seems to have paid off. The company released the latest iPhone model in 21 countries including China in January, and sales there undoubtedly helped make up for sales declines at U.S. carriers. Earlier in the year, Cook had announced the company earned $13 billion in sales in China last year.
Apple also announced a $14 billion cash flow originating from the quarter.
“Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68,” Apple CFO Peter Oppenheimer said.
Shares jumped 5.4 percent to $590.32 in after-hours trading.