Apple: Full Steam Ahead With Another Record Quarter

By  |  Tuesday, July 20, 2010 at 2:45 pm

As expected, Apple reported its best quarter ever, posting $15.7 billion in revenue, up 61 percent year over year. This was well above the $14.62 billion that analysts polled by Reuters expected, and at least for the moment puts it in a position to possibly match or exceed Microsoft’s results when they report on Thursday.

A record quarter was seen for its Macintosh line of computers, which sold 3.47 million Macs during the quarter and was up 33 percent. 8.4 million iPhones were sold, representing a 61 percent growth over the year ago quarter. iPads which launched during the quarter sold some 3.27 million, essentially maintaining the million per month sales rate it has enjoyed since launch.

“High demand is never a problem,” chief operating officer Tim Cook said of the iPad during a conference call with analysts. “We’re increasing capacity as quickly as we can,” he added, noting that iPad shortages had nothing to do with any particular component shortages.

Even the enterprise sector is looking brighter for Apple. Responding to a question on penetration in the sector, Cook shared some interesting statistics. 80 percent of the Fortune 100, and 60 percent of the Fortune 500 have either deployed or are testing the iPhone in their IT deployments, and increasing interest in the Mac platform was noted.

The iPad uptake was surprising, Cook said. “Already, 50% of the Fortune 100 is already deploying or testing the iPad. It’s fantastic.”

I guess you could call the only negative was a decline in iPod sales, which fell six percent to 9.4 million. Then again, the iPod’s functionality has been co-opted by the iPhone, so overall Apple really isn’t losing ground. It still holds over 70 percent of the US market, and chief financial officer Peter Oppenheimer told analysts it increased share during the quarter in just about every market which it operates.

Oppenheimer also said it would incur costs from the free bumper offer to the September quarter.

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  1. Hamranhansenhansen Says:

    > I guess you could call the only negative was a decline in iPod sales, which fell
    > six percent to 9.4 million.

    On the other hand, iPod revenue went up, because they sold more iPod touch and fewer of the cheaper models. One interesting thing is Apple sold more virtual iPods inside iPhone and iPad — almost 12 million — than actual iPods.

    The most interesting thing to me was that iPad did not cannibalize Mac, iPhone, or iPod touch sales. Those 3 are all up in spite of iPad being added.

    This year's holiday season ought to be amazing for Apple. The many years of work they put into OS X are paying off.