Apple Profits Soar 47% on iPhone Craze

Sales Jumped after Faster and Cheaper Device was Unveiled in June; Apple Stock Surges

(AP)  Apple Inc. said its net income rose 47 percent in the most recent quarter as more people bought Mac computers and gave in to the iPhone craze. The results, released Monday, sent Apple shares surging 7 percent in extended trading to an all-time high.

Apple unveiled a faster iPhone in June and cut the price of the previous generation of the phone to $99. That boosted iPhone sales from July through September to 7.4 million devices, half a million more than last year.

Apple weathered the economic meltdown better than other computer companies, giving it a running start when PC sales grew in the quarter. Apple had also updated its Mac operating system and refreshed its Macbook Pro line. Apple sold 3.1 million Macs, a 19 percent rise from the same period a year ago.

As Apple's iPhone, which has iPod features built in, has grown in popularity, Apple's regular iPod music player business has suffered. The company sold 10.2 million iPods in the quarter, 8 percent fewer than last year, even though Apple unveiled a new iPod Nano with a video camera in September.

The iPod Touch was the bright spot in the media player lineup. Sales for the gadget, which is like an iPhone without the phone, doubled from a year ago, Apple Chief Financial Officer Peter Oppenheimer said in an interview.

Apple said it earned $1.82 per share in its fiscal fourth quarter. Sales jumped 25 percent to $9.9 billion.

Apple said its outlook for the current quarter would be well below what analysts are expecting, but the company traditionally gives extremely conservative guidance. Wall Street shrugged off the estimate and sent the company's shares up $13.38, or 7.1 percent, to $203.24 in extended trading. The shares had closed regular trading at $189.86, up 1 percent on the day.

[omnibus66]

First it was the hula hoop, then the CB radio, and now the iPhone. Something else will come along and then the iPhone will take its turn as the greatest thing of the past. As long as At&T, Apple, Exxon, and Verizon make lots of money, who cares? LOL

[avigil2]

That's called progress, my friend. Technology is improving on a daily basis. Soon enough, we'll be calling the iPhone and the iPod "retro". I love the future!

[bobnjersey]

[First it was the hula hoop, then the CB radio, and now the iPhone. Something else will come along and then the iPhone will take its turn as the greatest thing of the past. ]

you could make a pretty good bet that the thing that 'comes along' and pushes the iphone into the shadows will be another amazing piece of technology from apple. they have an unbelievable record for literally creating whole product categories where none existed before.

even if you don't like them or their products ... you can't deny the impact their designs have on the industry ... and ultimately culture at large.

[Sky017]

Apple profits soar 47% on MAC craze.

Sorry, but your headline is disingenious. In the article you say apple sold 7.4 million iPhones, up 0.5 of a million from last year. Well that's 7 percent more. (Yes, it's excellent... but your headline is misleading.)

And just a bit lower down you state: Apple sold 3.1 million Macs, a 19 percent rise from the same period a year ago.

19 percent vs 7 percent. The increase in Mac sales is far greater than the increase in iPhone sales for the corresponding period last year. Macs are the main reason for the proits soaring, even though iPhones are higher margin.

Please tell it like it is. More people are choosing Macs.

Thanks.

[bobnjersey]

[Sorry, but your headline is disingenious. In the article you say apple sold 7.4 million iPhones, up 0.5 of a million from last year. Well that's 7 percent more. (Yes, it's excellent... but your headline is misleading.) ]

the profit w/ the iphone does not come from the sale of the device ... it comes from the commmitments made to the recurring monthly service for both voice & data ... worth many times what the phone costs.

[SocietysNightmare]

by bobnjersey October 19, 2009 11:39 PM EDT
[Phones should be for CALLING and the occasional text. If you're heavy into social networking by phone, and you have more apps than you can remember you probably need a life.]

personally i agree ... but this market ... known in the industry as 'mobility' ... is really a 'the sky is the limit' model now. it's currently hugely profitable (text messaging is about 1000 times that of voice calls) ... and where it will all lead nobody can say.

putting a smart phone into every current customer's hand/pocket pushes the potential for greater profits even further ... and who in business is going stand up and argue against that?

nobody can say what the 'killer app' is going to be in just a year or so from now ... or how much money that could represent to the companies best positioned to leverage it.

the concept of what a phone is ... and what it should be used for is changing fast ... and it's likely that just 'making/receiving calls' will be a small fraction of it capabilities both now ... and in the near future.


I agree. You would think that consumers would remember that the Motorola RAZR was $400 when it was introduced. Before they were discontinued, Carriers were practically givin' 'em away! Carriers will continue inflating prices as long as consumers are stupid enough to pay them.

[SocietysNightmare]

Who ever said "No one ever went broke underestimating the stupidity of the American public" was sooo right. Am I the only one who dreads the day when a smartphone is your only option? Phones should be for CALLING and the occasional text. If you're heavy into social networking by phone, and youhave more apps than you can remember you probably need a life.

[bobnjersey]

[Phones should be for CALLING and the occasional text. If you're heavy into social networking by phone, and you have more apps than you can remember you probably need a life.]

personally i agree ... but this market ... known in the industry as 'mobility' ... is really a 'the sky is the limit' model now. it's currently hugely profitable (text messaging is about 1000 times that of voice calls) ... and where it will all lead nobody can say.

putting a smart phone into every current customer's hand/pocket pushes the potential for greater profits even further ... and who in business is going stand up and argue against that?

nobody can say what the 'killer app' is going to be in just a year or so from now ... or how much money that could represent to the companies best positioned to leverage it.

the concept of what a phone is ... and what it should be used for is changing fast ... and it's likely that just 'making/receiving calls' will be a small fraction of it capabilities both now ... and in the near future.

[skeetchamp]

when will verizon get an iPhone?

[credibility2]

More consumer debt from a gimmick that will cost too much money for the carrier to provide the service needed to run the new toy. Unnecessary apps. Vegetative minimally intelligent malcontents. They probably charged it on one of their already maxed out credit cards.

[bobnjersey]

[Apple Inc. said its net income rose 47 percent in the most recent quarter as more people bought Mac computers and gave in to the iPhone craze. The results, released Monday, sent Apple shares surging 7 percent in extended trading to an all-time high. ]

where are all the obama haters who claimed the dow would be down to 4000 in six months back at the end of last year?

did they take their money off the table ... or were they smart enough to have confidence and put more on the table?