Apple makes record profits, detailed balances revealed in a press conference – Part 1

Apple is running a seemingly never-ending hot streak of success for the past two to three years. Despite attracting opprobrium from technology experts on the release of its devices and some of the decision it made in the past couple of years, Apple’s profits keep soaring up like crazy.

The iPhone 4S, successor in the line of Apple’s smartphone category, received a mixed response from customers and tech gurus but the quarterly reports have revealed an entirely different picture.

Not only did Apple piled up profits in the aching economy but to everyone’s surprise, it surpassed the expectations of economists and financial specialists.

The company reported revenue of $46.33 billion and profits of $13.06 billion, or $13.87 per share, for the quarter ended December 31, 2011. That was up from the $26.74 billion, or $6.43 per share, the company saw at the same time last year.

“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads, and Macs,” Tim Cook, Apple’s CEO, said in a statement. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”

Analysts, on average, predicted that the company would bring in $10.06 per share on revenue of $39 billion.

The performance obliterated Apple’s own estimates, which called for earnings of $9.30 a share on sales of $37 billion. Apple made a rare miss in its previous quarterly earnings, posting results that were strong but lower than analysts expected, due in no small part to customers holding off on buying new iPhones in anticipation of a newer model.

For its current quarter, Apple expects revenue of $32.5 billion and projects earnings of $8.50 per share, 48 cents above analyst expectations.

Apple’s gross profit margin for the quarter was 44.7 percent, up 38.5 percent percent from the same quarter last year.

Following the news, shares of the company skyrocketed, sending Apple to new highs. In after-hours trading, Apple was up by $33.59, or 7.99 percent.

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Posted by Usman Khalid on Jan 26 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.