Apple’s BlockBuster Earnings, iPad Eating Up PC Market





Jul 20 2011
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Apple’s stock jumped as much as 7.5% to $405 a share in extended trading hour, after its earnings announcement. This is one company which grows as if there’s no tomorrow and leaves the competitors miles away especially in the tablet market. It was nice to read that iPhone sales actually quadrupled from a year ago in the Asia market particularly China. It was indeed fantastic to read that iPad sales doubled from a quarter ago worldwide. The worry about supply problems that were dogging the company is now over, literally.

Apple iPad Stock

Here’re some facts about Apple Inc. (Nasdaq: AAPL, stock) latest earnings for the quarter ended June 2011:

  • Revenue: $28.6 billion (up 82% from $15.7 billion a year ago) vs analysts expectation of $24.8 billion
  • Net income: $7.31 billion (double the $3.25 billion a year ago)
  • Earnings per share: $7.79 / share (double the $3.51 per share a year ago) vs analysts expectation of $5.87 / share
  • iPhone sales: 20.3 million units
  • iPad sales: 9.25 million units (up 142% from a year ago)
  • Mac sales: 3.95 million units (up 14% from a year ago, lowest growth in 2 years)
  • iPod sales: 7.54 milion units vs analysts projection of 8.5 million units
  • China’s iPhone sales: $3.8 billion – a six-fold jump
  • Gross profit-margin: 41.7% compared ro 39.1% a year earlier
  • Fourth quarter guidance: Profit of $5.50 a share on sales of $25 billion vs analysts expectation of $6.41 a share on sales of $27.7 billion. Apple traditionally gives ridiculous low forecast so investors were not particularly concern on this guidance.

iPhone 5

Apple said 86 percent of Fortune 500 companies are testing or deploying the iPad, and that sales of the tablet topped those of the Mac computer among primary and secondary schools. Apple is also to release its new iPhone model in September 2011 which has a faster processing power and an 8-megapixel camera. Based on IDC’s latest estimation that PC growth during the same quarter was only at 2% from last year, iPad is definately giving PC makers sleepless nights. Already, Apple iPad is the fourth- biggest computer brand in the world; after HP, Dell, and Lenovo.

iPhone 5 Rumour

 It would be interesting to watch the Apple’s stock performance after the opening bell. The critical point would be the $400 a share hurdle. If Apple can breach and sustain above this level, it may go for the challenge of unseating Exxon Mobil Corp. (NYSE: XOM, stock) as the largest company in the world as far as market capitalization is concerned. At $405 a share, Apple’s market capitalization is $374.5 billion compared to Exxon’s $412 billion – a difference of only $37.4 billion.

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