Apple announces Q1 2011 results
Stephen M. Hackett
| Tuesday, January 18th, 2011
The short version is that Apple is still making money hand over fist.
Here is a snippet from the company’s press release:
Apple today announced financial results for its fiscal 2011 first quarter ended December 25, 2010. The Company posted record revenue of $26.74 billion and record net quarterly profit of $6 billion, or $6.43 per diluted share. These results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter. Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.
Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7.33 million iPads during the quarter.
Here are some highlights from the call:
- iOS devices made up 75% of the company’s revenue. Macs made up 20%.
- Notebook sales continue to dominate desktop sales.
- Gross margin for the quarter are around 39%
- 14.8M iPads sold in 2010.
- iPod touch grew over 25% year-over-year
- iPod holds 70% of market
- $1.1 billion revenue from iTunes. $3.85 billion from Apple retail stores.
- MacBook Air, MacBook Pro big leaders. Mac Pro in strong demand.
- Mac grew 23% this quarter. Rest of industry grew 3%.
- Mac App Store in 90 countries with more than 1,000 apps. 1 million downloads on day 1.
- 160 million iOS cumulative device sales through quarter.
- Apple excited about Verizon iPhone 4.
- 80% of Fortune 500 are looking at the iPad. Many newcomers to the iPhone, as well, including Nissan.
… and from the Q&A session:
- Tim Cook: Apple doing everything possible to keep up with demand for the iPhone 4.
- Apple declined to predict number of Verizon iPhones expected to sell.
- Tim Cook: “Mainland China, Hong Kong, and Taiwan. Revenue from those was $2.6 billion last quarter. Up 4x from prior year quarter. To further enhance that, did a little over $3 billion for last fiscal year. Placing more and more resource in these areas and continue to look for expansion possibilities throughout Asia.” Editor’s Note: I bet the CDMA iPhone will show up on a Chinese carrier before long.
- Apple doesn’t seem too worried about tablet competitors, stating that Windows and Android make for lousy tablets.
- Remember what I said about Chinese CDMA iPhones? Tim Cook: “Relative to other carriers, we’re always looking and assessing in every country who we should be doing business with and exploring different deals and arrangements, etc.”
- Tim Cook: “If iPad/tablets cannibalize PC market, keep in mind we have low share of the PC market, so other guys lose more and we have more to gain. We are not spending one minute on cannibalization on here. iPad teams are building the best iPad and the Mac team is building the best Macs; both groups believe they continue to grow and make great stuff.”
- Apple is proud of the lack of “high walls” between product groups, and that products often include things learned from other projects. Like “instant on” for the MacBook Airs from the iPad.
- Over 160 million iOS devices sold since 2007.
- Apple continues to believe its “integrated approach delivers a far superior customer experience than the fragmented approach.” Examples given included payment options, mobile software updates and software/hardware compatibility.
- Apple is very happy with the in-roads iOS has made with enterprise companies.
This was Tim Cook, talking about the future of Apple:
Apple is doing its best work ever. We are all very happy with product pipeline and the team here has an unparalleled breadth and depth that Steve has driven in the company, and excellence has become a habit. We feel very very confident about the future of the company. I would also note that we’ve done outstanding job in our Mac: 19 straight quarters of outgrowing market, but still have a very low share. It would seem like still enormous opportunity there.
AAPL appears to be up in after-hours trading, after falling 2.25 in the US market today, on news that CEO Steve Jobs is on a health-releated leave of absence — which Apple didn’t discuss on the call whatsoever.