Apple’s third quarter profits surged 73 percent on higher demands for its Macintosh notebook computers and iPhone.
Net income mounted to $818 million or 92 cents a share for the last quarter that ended June 30, compared with $472 million, or 54 cents a year earlier. Sales rose 24 percent to $5.41 billion, topping analysts’ estimate of $5.32 billion. Revenue advanced 24% to $5.41 billion from $4.37 billion. Gross margins widened to 36.9% from 30.3%.
The results beat the Thomson Financial estimates, who expected Apple to earn 72 cents a share on $5.29 billion in sales.
During the quarter, the company shipped 1.76 million Macintosh computers, driven by the MacBook and MacBook Pro, up by 33 percent same time a year ago. PCs accounted for majority of the quarter’s revenue. Apple’s foray in the mobile market also responded well as it sold around 270,000 iPhones in the first two days (29-30 June) of the product launch, which in fact were also the last two days of Q3, beating all expectations.
After receiving buoyant response for iPhone in US, Apples is planning to introduce it in the other markets too. The iPhone is expected to arrive in Europe later this year and will be available in Asia by 2008.
Apple expects to sell 10 million iPhones in 2008, capturing 1 percent of the market. That goal depends on winning customers away from Nokia, Motorola, Palm and Research In Motion.
After posting a blockbuster quarter, Apple’s shares jump to an all-time high, while the rest of the market fell sharply. Apple’s shares soared $8.88, or 6.5 percent, to $146.14. The stock peaked at $148.50, a new record high.
Overwhelmed with the third quarter result, Apple expects to spell its magic again in the fourth quarter as company expects to earn $5.7 billion revenue.
Via: Reuters
