Apple shatters expectations with 90% jump in profit

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SAN JOSE, Calif.
— While the world was focused on its new iPad tablet, Apple’s iPhones
and Mac computers surged to give the company a 90 percent leap in
profit during its second quarter.

Apple reported earnings of $3.07 billion, or $3.33 a share, compared to year-ago profit of $1.62 billion, or $1.79 a share. Revenue surged 49 percent to $13.5 billion.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” Apple CEO Steve Jobs said in a statement. “We’ve launched our revolutionary new iPad, and
users are loving it. And we have several more extraordinary products in
the pipeline for this year.”

Apple sold 8.75 million iPhones in the quarter, a
131 percent leap over the year-ago quarter; 2.94 million Macs, a 33
percent jump; and 10.89 million iPods, a one percent drop. Apple has
said it expects sales of the popular iPhone to increasingly eclipse
those of the iPod music player.

The company’s results blew up estimates of analysts.

Analysts polled by Thomson Financial predicted Apple would post a 47 percent jump in revenue to $12 billion and earnings of $2.45 a share.

“It’s amazing. They keep cranking along,” said Brian Marshall of Broadpoint AmTech. He had forecast the company would report earnings per share of $2.60 on $12.5 billion in revenue. “Apple truly has the best business model in all of technology, and I think it’s getting better,” he said.

For the current quarter, Apple forecast revenue between $13.0 billion and $13.4 billion and earnings per share of $2.28 to $2.39.

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(c) 2010, San Jose Mercury News (San Jose, Calif.).

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Distributed by McClatchy-Tribune Information Services.

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