Success of iPhone and iPad drive a 125pc profit jump for Apple

19 Jul 2011

Apple’s Q3 revenues reached a massive US$28.5bn, up 82pc from US$15.7bn, thanks to the enduring success of its iPhone and iPad devices, delivering a profit of US$7.3bn, up from US$3.2bn a year ago. However, the decline of the iPod continues, with sales of the devices down 20pc.

“We’re thrilled to deliver our best quarter ever, with revenue up 82pc and profits up 125pc,” said Steve Jobs, Apple’s co-founder and CEO. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”

Apple sold 20.3m iPhone devices during the third quarter, representing a 142pc increase on a year ago.

The company sold 9.2m iPads during the quarter, up 183pc over a year ago.

Apple sold 3.9m Mac computers during the quarter, up 14pc.

However, iPod sales declined 20pc from a year ago to 7.5m devices sold.

Looking ahead to the fourth quarter, Apple CFO Peter Oppenheimer said the company predicts revenues of around US$25bn.

“We are extremely pleased with our performance, which drove quarterly cash flow from operations of $11.1bn, an increase of 131pc year-over-year,” said Oppenheimer.

“Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about US$25bn and we expect diluted earnings per share of about US$5.50.”

Photo: Steve Jobs, Apple co-founder and CEO

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years