For most of the day, analysts were downbeat on Apple's prospects, sending the stock price dipping 2%. Cometh the hour, cometh Apple's usual miraculous figures with a 151% rise in iPad sales.
Big Numbers From Apple
If anyone thought that Apple's wave had peaked with the phenomenal sales from the iPhone 4S launch, they'll have to wait another quarter at least. Apple reported its Q2 earnings and pulled in US$ 39.2 billion in revenue with a net profit of US$ 11.6 billion for the quarter. The company now has over US$ 110 billion in cash and securities.
The firm sold 35.1 million iPhones, sales of which were up 88% year-over-year, and sold 11.8 million iPads, up 151%. Presumably, stock limitations prevented Apple from reaching the 13 million analyst estimates, while it is unlikely that the iPad 3's Wi-Fi issues caused much of a dent. Even lingering doubts over Mac sales were dispelled with numbers up 7% year-over-year to over 4 million sold.
If there is a gloomy spot, it is that the perennial gift idea, the iPod (the device that launched Apple back on the road to success) is dropping fast with sales down 7%, although Apple still managed to sell 7.7 million of the plucky media players.
UPDATE: Apple's stock is now back up 9% after yesterday's dip, up a whopping $50. In the never ending game of buy or sell, it looks like both parties won in recent days. And the rise is likely to continue with some estimates suggesting Apple's iPhone business alone is one of the world's most profitable enterpries.
Hints at the Future
Apple's guidance for the next quarter looks pretty low, suggesting that it is not expecting a massive boost from an early iPhone 5 unveiling (whatever clever casing and glass Apple decides to use) or Mini iPad launch. In fact sales are likely to dip as buyers start to hold out for these next-generation products.
That leaves the later part of the year clear for whatever launches Apple has in the pipeline. Tim Cook in the analyst call, as usual, refused to comment on future products but admitted there is some cannibalization going on between Apple's lines. He said that the company is still innovating like crazy to keep both carriers and customers interested. You can catch a replay of the call.
China is proving a major hot spot for Apple with revenue from the country's rising middle classes now worth $7.9 billion to Apple and growing fast, easing past Europe as Apple's second most valuable territory. The company has many strides to make in the region, and the small matter of the iPad trademark dispute to sort out, but should continue to thrive.
Other comments he made dismissed the idea of a Mac/iPad combo device and categorized iPad growth as the fastest seller from Apple yet. “Just two years after we shipped the initial iPad, we sold 67 million. It took us 24 years to sell that many Macs, and five years for that many iPods, and over three years for that many iPhones.” He also said that he is happy to settle with (major component partner) Samsung out of court, saying that he hated litigation.
That iPad laptop idea doesn't look so bad, meet Brydge
UPDATE: Tim Cook might not like the idea of an iPad/Macbook combo, but one company does. Brydge has already met its Kickstarter funding needs to design and build a stylish, secure and sleek keyboard and holder for your iPad that converts it into a Macbook Air-alike.