Skip the navigation
News

Mac, iPad sales push Apple to record revenue

iPhone 4 case giveaway expected to cost Apple $175M

By Gregg Keizer
July 20, 2010 10:09 PM ET

Computerworld - For the third time in the last four quarters, Apple today reported it sold a record number of Macs, although sales of the iPhone slipped slightly.

The iPad, meanwhile, debuted on Apple's balance sheet with 3.27 million units sold, generating $2.17 billion in revenues that represented nearly 14% of the Cupertino, Calif. company's total income for the period.

"That was out of nowhere," said Brian Marshall, an analyst with Gleacher & Company, about the iPad's numbers. "Phenomenal."

Overall, the company posted record revenues of $15.7 billion for the quarter, with a net profit of $3.25 billion. Revenues were up 61% year-over-year.

"Revenues were driven primarily by the iPad, with strong sales of iPhone and Mac," said Peter Oppenheimer, Apple's chief financial officer, during the earnings call with Wall Street analysts Tuesday afternoon.

Marshall agreed, saying that strong Mac and iPhone sales, when combined with a stellar debut by the iPad, produced the record quarter.

The iPad's number should put to rest thoughts that the tablet would cannibalize sales of Apple's other products. "The Mac upside and the iPhone upside, along with the iPad numbers, makes the idea that the iPad would take away from Apple's internal dollars null and void," said Marshall.

The iPad sales weren't a surprise: In late June, Apple announced that it had sold 3 million tablets in the first 80 days of availability. Apple is selling approximately 1.1 million iPads per month, according to Apple's figures, putting it on a pace to sell almost 10 million tablets by year's end.

In the quarter that closed June 26, Apple sold 8.4 million iPhones, down 4% from the 8.75 million it sold the first quarter, but up 61% from the same period last year. Mac sales, however, set a record of 3.47 million, up 33% over the same quarter in 2009 and trumping the 3.36-million mark of the previous bestselling quarter, the final three months of last year.

Apple set Mac sales records in the third and fourth quarters of 2009, as well as in this quarter, turning a hat trick out of the last four periods.

"The Mac is very healthy," said Ezra Gottheil, an analyst with Technology Business Research. "That was the one business they might have been concerned about, but it's looking very good. It's still far and away from where they once were on an APS [average selling price], but they don't have to generate a lot of their profit on the Macs anymore."

Desktop Mac sales were up 18% year-over-year to 1 million, a growth rate significantly less than the 40% increase the prior quarter and the 70% climb of 2009's final quarter. Apple explained the slippage as part and parcel of its refresh cycle; the company's primary desktop, the iMac, hasn't been revamped since October 2009.

Notebook sales were up 41% for the quarter to 2.46 million, a growth spurt dramatically higher than the 28% increase of the prior quarter. "There's clearly a move to mobility," said Tim Cook, Apple's chief operating officer, during the question-and-answer portion of the call.



Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

Macintosh White Papers
Overcome Top 7 Admin Challenges of Active Directory
As Active Directory's role in the enterprise has drastically increased, so has the need to secure the data. Gain insight on creating repeatable,...
Insiders Can Ruin Your Company. Take Action.
Did you know that 80 percent of threats to an organization come from the inside? The threat from insiders is often overlooked in...
Top Solutions and Tools to Prevent Devastating Malware
Custom malware frequently goes undetected. According to Forrester Research, the best way to reduce risk of breach is to deploy file integrity monitoring...
Streamline Compliance and Increase ROI
Streamline, simplify, and automate compliance related activities; especially those that impact multiple business units. This white paper from NetIQ, outlines solutions that will...
X-Ray of the PCI Process-4 Proactive Steps
This white paper from Forrester Research Inc., helps break PCI into understandable components. Security and risk professionals will gain knowledge and insight into...
All Macintosh White Papers
Macintosh Webcasts
Optimizing Networks for the Cloud
Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
Customer Spotlight: How IPC The Hospitalist Company Implemented Oracle on VMware
Have you been looking to hear about customer's experiences with the new VMware vCenter Site Recovery Manager product? View this webcast to learn...
Virtualize Business-Critical Applications with Confidence
Virtualizing business-critical applications has become a key focus for organizations as they move along their virtualization journey. With the launch of VMware vSphere®...
All Macintosh Webcasts
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs