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Apple Q3 Revenue Tops $5.4 Billion, Ships 270K iPhones [UPDATED]
by , 5:10 PM EDT, July 25th, 2007
Apple revealed its June quarterly earnings results on Wednesday, reporting US$5.41 billion in revenue and $818 million in profit. The Mac and iPod maker also managed to pull off a 36.9 gross margin, up from 30.3 percent for the same quarter last year, and announced that 270,000 iPhones shipped in the first two days the smart phone was available.
Compared year over year, Apple's earnings are up significantly. For the same quarter last year, the company reported $4.37 billion in revenue and $472 million in profit.
Apple shipped 1.764 million Macs this last quarter, up 33 percent from last year -- and also the highest number of Macs shipped in any quarter. Mac sales accounted for about 60 percent of the company's quarterly revenue, and about 64 percent of the Macs sold were laptops.
The Mac growth rate for the quarter came in at about 4 times the rest of the U.S. market, according to the latest statistics from IDC. Compared to the rest of the world, Apple's computer sales growth was more than 2.5 times the rest of the industry.
Apple CEO Steve Jobs commented "We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever."
The company reported 9.815 million iPods sold, up 21 percent year over year. Apple's portable media players account for 71.5 percent of the market based on numbers from NPD.
Apple's music business grew 33 percent year over year thanks to strong sales at the iTunes Store, and is now considered the third largest music retailer in the United States -- above both Amazon and Target.
iPhone sales estimates for June 29 and June 30 were all over the board leading up to the Wednesday afternoon financial report. Although the 270,000 figure comes in below the 500,000 estimates some analysts projected, the total is well above the 146,000 activations AT&T reported for the first 30 hours or so the iPhone was available.
So far, consumer response to the iPhone has been positive. "90 percent of iPhone owners surveyed said they were extremely or very satisfied with of iPhone owners surf fade said they were extremely or very satisfied with their phone," Apple CFO Peter Oppenheimer said. "85 percent said they are extremely or very likely to recommend the device to others."
He added "Customers are clearly loving their iPhones."
Looking forward to the company's fourth fiscal quarter for 2007, Apple is expecting revenue of about $5.7 billion and earnings per diluted share of about $0.65.
Apple is currently trading in the after hours market at $136.10, down 1.16 (0.85) after closing for the day at $137.26.
[This article has been updated with additional information about Apple's Q3 earnings report.]
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Observer Comments
After sinking (immediately after the markets closed) to about $133, AAPL stock is now trading around $150 in the after-hours trading.
People have read and digested the Q3 reports and realised that the 270,000 phones were sold in only 20 business hours that were remaining in Q3. The weekend (which includes Sunday, 1 July), look more like about 500,000, which is at least in line or better than estimates from most analysts (with the exception of the imaginary "whisper number" of one million).
This means that, if the share price stays in the $150, tomorrow Apple will be bigger than HP (about $129B market capitalisation, versus HP: $125B).
Remember just a year and a half ago when Steve Jobs sent an internal memo about surpassing DELL? Well, they're now half the value of Apple!
Oh, feel free to gloat, as far as I'm concerned. I had a stupid trailing stop at 5%, which I forgot about. It kicked in yesterday and bailed me out at around $138. Later when I saw it, I was really annoyed. I waited today and got in on that dip right after 4. My original 460 shares are now 500! I'm counting my blessings one by one (1, 2, 3, 4, 5.... 1245, 1246, 1247...)!
What's really great about this company, it is still NOT too late for undecided folks to get in on it at $150. Many have predicted $200 in the next year and it only looks even more realistic now.
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