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Wednesday, 25 January 2012 10:15

Apple storms ahead: yet another record quarter

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The Apple snowball just keeps rolling. The company has reported another record-breaking quarter.

Apple's recent quarterly results always seem to include reference to a new record being set for one measure or another. For the December 2011 quarter it was revenue and profit.

Apple recorded quarterly revenue of $US46.33 billion and quarterly net profit of $US13.06 billion. This time last year, the story was also record revenue and profit, but the figures were 'only' $US26.74 billion and $US6 billion.

Unit sales have raced ahead in most categories. The release of the iPhone 4S saw the sale of 37.04 million iPhones in the quarter, up 128% year-on-year. Keeping the iPhone 3G and iPhone 4 on the market has given Apple a range of phones at a spread of prices, and all contributed to the sales record. "We could not have been happier," said CEO Tim Cook.

The iPhone is currently sold by around 60% of the world's mobile carriers. Apple hopes to sign the remainder over the next 12-18 months.

iPad sales growth was also impressive: up 111% to 15.43 million units. Mr expressed confidence that 'limited function' devices such as the Kindle Fire did not represent a threat to the iPad as people want 'full function' tablets. There are more than 170,000 iPad apps.

What about Mac and iPod? Please read on.

 


Even the Mac range saw growth that most PC vendors would die for. Sales of 5.2 million Macs represented year-on-year growth of 26%. Gartner recently reported total fourth-calendar-quarter PC shipments fell 1.4% year-on-year.

About half of those Macs were sold to first-time audiences, demonstrating that Apple isn't just preaching to the choir. However, Cook admitted that iPad sales are cannibalising the Mac and that the company is happy with that trend.

Conversely, he also noted that among enterprise customers come to the iPad because of the iPhone, and that iPad sales sometimes lead to Mac purchases. This is the 'halo' effect that was previously said to lead Windows-using iPod (and later iPhone) owners to at least consider a Mac for their next purchase.

The one exception to the good news was the 21% drop in iPod sales to 15.4 million units. But Mr Cook and his colleagues are unlikely to lose any sleep over that while the growth in iPhone sales overcompensates for shrinking demand for the iPod.

"We're thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs," said Mr Cook. "Apple's momentum is incredibly strong, and we have some amazing new products in the pipeline."

Haven't they always? If rumours are correct, the first could be the iPad 3, with the iPhone 5 expected later this year. Also, some are looking anxiously for a Mac Pro update as a sign that Apple is still serious about the Mac.

What else might be in store? Please read on.

 


And, of course, there's the much rumoured Apple TV (not the current box, but an actual TV). As usual, Mr Cook declined to comment on future products but noted that where the company sold 2.8 million Apple TVs in fiscal 2011 (which ended in September), it sold 1.4 million in the December 2011 quarter - but it's still just a hobby.

Apple shares closed at $420.41, then rose to $453.61 (at the time of writing) in after hours trading following the announcement.

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Stephen Withers

Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.

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