Apple posts record quarterly earnings again: is it pure magic?

Apple posts record quarterly earnings again: is it pure magic?
Apple's quarterly results were in on Wednesday and they left little room for speculation: Apple did it again. In fact, the company registered the highest non-holiday quarterly revenue in its history. Cupertino's profits nearly doubled last year's $3.07 billion fueled up by a 28% growth of Mac sales and by a stunning 113% surge in iPhone sales on the year. Many analysts have pointed out that the company results "defy gravity", with a "monster quarter" and "magical" profits, but is there something more than just pure magic that's driving Apple?

The earnings call detailed the results and acting CEO Tim Cook along with CFO Peter Oppenheimer answered some of those questions. We have the highlights with per case analysis below:


  •  iTunes revenue hit $1.4 billion. iBookstore offers more than 100 million books. The wowing 27 on the year rise shows that Apple is on the right track, but while the company doesn't break down how much of that stunning number comes from apps and how much comes from music, we can be relatively confident that software made for a large chunk of the sum. Cupertino is expected to introduce subscription plans this year, which might further boost this number and give the company one more reason to pride over Android.


  •  iPhone sales revenue surged 113%, while total revenue from handset and accessory sales increased by 126%.
  •  88% of Fortune 500 companies are testing or deploying the iPhone. 75% of them consider the iPad. That's arguably one of the most important announcements made in the earnings call as it shows that the business is replacing BlackBerries with iPhones and the mobile landscape is changing with a rapid pace. If this trend progresses, we'll certainly see Apple cement its positions, while Nokia with its E series and RIM with its 'Berries will be the biggest losers.
  •  Apple added three major carriers supporting the iPhone this quarter: Verizon, SKT and Saudi Telecom. Cupertino is constantly looking to add more, but even now the iPhone is available on 186 carriers across 90 countries. Tim Cook said that while Verizon was a key element of the handset's success in the quarter, AT&T reported incresed activations as well.
  •  LTE iPhone: “The first generation of LTE chipsets force a lot of design compromises with the handset, and some of those, we are just not willing to make.”


  •  iPad 2 suffered from “the mother of all backlogs.” Despite that Apple managed to roll out significantly more iPad 2s and is confident that it'll “produce a great number of iPad 2s during the quarter.” Tim Cook added: “We’re thrilled with the iPad’s momentum.”
  •  “We sold every iPad 2 we made during the quarter.”
  •  other Mac devices: iOS is pushing Macs in the corporate sector and that's one of the main reasons for the growth in Mac sales.


  •  Tim Cook couldn't be more optimistic on Apple's positions in regards to Android as he quoted comScore data about iOS, which proves the platform outgrows Android by 59% in the U.S. “And so this is an enormous percentage,” Cook added. The acting CEO also noted the importance of fragmentation in the Android world: “I think the user appreciates that Apple can take full responsibility for their experience, whereas the fragmented approach turns the customer into a systems integrator and few customers that I know want to be a systems integrator.”

Next quarter

  •  Peter Oppenheimer: “In terms of the June quarter, I would expect to see a significant year-over-year increase in sales.”

The majority of the following questions focused around the tragic tsunami in Japan and how it could affect sales. In a nutshell, Apple didn't seem overly concerned about components shortages if the situation remains relatively stable. Even more so, the acting CEO assured everyone that supply chains will not be affected. So while the iPad sales might be slightly under expectations, Apple only had a couple of weeks to sell the second-gen tablet in the US and only a couple of days to sell it across the 25 countries it launched it just before the end of the quarter. With more countries getting the iconic tablet and the convincing tale of the numbers, it seems there is little room left for nay-sayers as Apple gears up for the next quarter.

Is it magic? A part of it might be, but it seems more like gradual evolution to us. After the groundbreaking iPhone, Apple has been building on its existing portfolio and even the iPad - as magical as it seems - was considered a large iPhone. But even if it was magic - we'd know some if its ingredients: Apple has continuously and steadily managed to improve over one single brand whether its the iPhone, the iPad or the iPod; it's products carry an identity like none other and it has the tight integration with services like iTunes that finish the cycle.



40. Outsider unregistered

Man, would hate to lose all those stocks when Jobs kidney fails and he passes on ..RIP Apple =/

31. Eingild

Posts: 203; Member since: Apr 19, 2011

"other Mac devices: iOS is pushing Macs in the corporate sector and that's one of the main reasons for the growth in Mac sales." Seriously? Corporate sectors want total control over their device. Total control means, "openness" and "flexibility". Mac PCs is great but the environment of these devices are closed like prison cells. No one gets in or our. P.S Not an Apple hater. I love apple. It's just that I think Mac needs a little bit more of "openness" to be widely accepted around the globe.

32. Eingild

Posts: 203; Member since: Apr 19, 2011

PCs are*: in or out*

29. Rawrzellers

Posts: 224; Member since: Aug 22, 2010

I used to know this other company that posted record earnings each quater... well two companies actually... Enron, Bernie Madoff?

28. InspectorGadget80 unregistered


30. taco50

Posts: 5506; Member since: Oct 08, 2009

Why do you need a removable battery?

39. Rawrzellers

Posts: 224; Member since: Aug 22, 2010

Cause if your battery goes to shit which used to be a very common problem with iPhones not sure if it is now, you have to send it back to apple and pay their service fee.

27. TDroid21

Posts: 70; Member since: Apr 04, 2011

@jbash i used my freind's nokia to type here coz my android ran out of juice..

38. jbash

Posts: 345; Member since: Feb 07, 2011

dont you wish battery tech was on pace with computing tech

21. hawk62

Posts: 320; Member since: Nov 21, 2009

Keep bashin apple. They are winning. Only a handful of techies care about the hdmi out, removeable memory, dual core shit that android needs to sell to offset the fact that android is a weaker os. I have no problem with the tinny little iphone screen, it is better than than droid x screen i had. Apple makes a product that works and they are doin a great job selling it.

25. taco50

Posts: 5506; Member since: Oct 08, 2009

I have to say +1

18. jbash

Posts: 345; Member since: Feb 07, 2011

gemini where are you? we miss you! :)

22. 530gemini

Posts: 2198; Member since: Sep 09, 2010

At this point, with Apple's another VERY successful quarter, I could care less what fandroids would say or think about this article :) I just read through it and LOL :)

17. Rich unregistered


11. trin

Posts: 88; Member since: May 11, 2010

Apple is a great company with a magical marketing team. Who else could release a device with features they should have included originally and have more people continue to eat it up? Don't hate on em. Apple is a huge bubble waiting to burst tho. And when it does a lot of people are gonna be stuck. The minute it's not "cool" or "high class" to own an apple product is the day the iphone dies. That's generations away imo.

10. TDroid21

Posts: 70; Member since: Apr 04, 2011

Pure majic? Naahh!! Probably from lawsuits.. Gud thing im typing on a humble nokia c3.. Who's tracking me? Haha

13. zuno gyakusatsu

Posts: 257; Member since: Mar 16, 2010

nice double post from your nokia c3....

14. davecann2

Posts: 460; Member since: Mar 15, 2011

Your reliable Nokia still won’t prevent you from double

19. jbash

Posts: 345; Member since: Feb 07, 2011

why is droid in your username and you are using a nokia, isn't that an oxymoron?

9. TDroid21

Posts: 70; Member since: Apr 04, 2011

Pure majic? Naahh!! Probably from lawsuits.. Gud thing im typing on a humble nokia c3.. Who's tracking me? Haha

8. kev unregistered

Its funny how controlled apple fanboys are,very worrying revelations are right here in black and white how apple is extending itrs control and monitor them in every way possible and yet they defend it without question!

7. B unregistered

make sure you don't leave comments here from your iphone,apple will be tracking it and crush you......or else make you spend hundreds on a 'new' product

6. Truthy unregistered

Apple is a smart company and no matter what you think of their products, you'd be a fool to not want their stock. A capitalistic sucess like few others in recent memory. I'm a huge Android fan but it's all about getting what you like and what works for you. Competition in the industry keeps everyone on their toes. This back and forth battle is great for everyone, Apple, Google and consumers.

5. taco50

Posts: 5506; Member since: Oct 08, 2009

Can't wait for the fandroid trolls to come rolling in here with their lame excuses on why android is better. The Apple juggernaut keeps marching on.

15. biggles

Posts: 269; Member since: Oct 15, 2009

Yeah, shocker. Ridiculously overpriced + wildly popular = massive profits.

24. taco50

Posts: 5506; Member since: Oct 08, 2009

Before the iPhone smartphones were way more expensive. Other manufacturers had to drop their prices to compete with the iPhone. $49 for 3GS is ridiculously over priced? Also if their over priced why would they be popular? By the way the Xoom is more expensive than the iPad sooo...

36. remixfa

Posts: 14605; Member since: Dec 19, 2008

49 is what your paying ATT. ATT didnt get cheaper phones, they are just closing out old inventory because the iphone4 had been out for a few months. ATT still sells the thing to ATT for 500+ while the actual build cost is around $130 or so for it. Your confusing carrier subsities with what they pay for the phone from apple.

2. andro unregistered

Its no suprise when Fanboys hand over all their cash foaming at the mouth each year for products which are so called 'upgrades' of previous generations,despite the differences being minimal. Worse still reports of major worry have emerged of Apple spying on its users with the facetime camera taking anonymous photos of the phones user and not saving them on the phone but ending them somewhere,and now the revelation that the iphone is tracking your every movement weither you like it or not and transmitting all the data to apple. But Fanboys iphone 5 is almost here with a slightly better camera and better antenna so get your bank accounts ready and nfc sorted so apple can track you and continue to smile!!

3. davecann2

Posts: 460; Member since: Mar 15, 2011

^^^ TROLL ^^^ Hasn't Google been spying on its users for a long time now?

20. remixfa

Posts: 14605; Member since: Dec 19, 2008

davecann, google asks permissions and gives you an opt out if you dont want your data tracked. apple didnt ask permissions and has been secretly tracking you for who knows how long. and there is NO WAY to turn it off. Of course they had a monster quarter, its not magic, its common sence. They launched the ipad2 and VZW iphone4. Had it been anything other than a huge success it could only be called a failure. Ibots buy anything cupertino throws out. Ahh.. PA, your love affair with Apple knows no bounds huh? Pure magic? Really?? lol. Did you have a boner when writing that? Is steve jobs naked under the photoshopped money?? lol.

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