Apple just posted its earnings report for the third quarter of the fiscal year 2011, and like in the previous couple of quarters, the Cupertino-based firm did pretty well for itself. Revenue for the fiscal Q3 managed to reach $28.57 billion while net profit came to $7.31 billion, which compares to revenue of $15.70 billion and net profit of $3.25 billion from fiscal Q3 2010. Moving on to sales, Apple announced that it sold 20.34 million iPhones in the quarter, up from 18.65 million the previous quarter. Sales of the iPad reached 9.25 million in Q3, up from 4.69 million in Q2, while iPod sales shrunk to 7.54 million, down from 9.02 million in Q2.
All in all it looks like Apple had another successful quarter, likely thanks in large part to such strong sales of the iPhone and iPad. As pointed out by Dan Frommer on Twitter, those two devices now make up more than two-thirds of Apple's business. Apple made no response to the rumors of an upcoming iPhone or iPad refresh in its announcement, which comes as a surprise to absolutely no one, but CEO Steve Jobs did say that they're "excited about bringing iOS 5 and iCloud to our users this fall." The company's full earnings report is ready for your perusal down below.
UPDATE: During Apple's Q3 earnings call, CFO Peter Oppenheimer said that a "September quarter product transition" would have an effect on the company's revenues for the quarter. Considering all of the rumors and reports we've been hearing about the next gen iPhone making its debut in September, it's probable that Oppenheimer was referring to Apple's next handset. It's worth pointing out that "September quarter" doesn't necessarily mean that September is the month that the "product transition" will go down, but that seems to be the month that many believe that the next iPhone will be revealed.
Apple Reports Third Quarter Results
All-Time Record Revenue and Earnings
iPhone Sales Grow 142 Percent; iPad Sales Grow 183 Percent
CUPERTINO, California—July 19, 2011—Apple® today announced financial results for its fiscal 2011 third quarter ended June 25, 2011. The Company posted record quarterly revenue of $28.57 billion and record quarterly net profit of $7.31 billion, or $7.79 per diluted share. These results compare to revenue of $15.70 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent compared to 39.1 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.
The Company sold 20.34 million iPhones in the quarter, representing 142 percent unit growth over the year-ago quarter. Apple sold 9.25 million iPads during the quarter, a 183 percent unit increase over the year-ago quarter. The Company sold 3.95 million Macs during the quarter, a 14 percent unit increase over the year-ago quarter. Apple sold 7.54 million iPods, a 20 percent unit decline from the year-ago quarter.
“We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent,” said Steve Jobs, Apple’s CEO. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”
“We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131 percent year-over-year,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50.”
Apple will provide live streaming of its Q3 2011 financial results conference call beginning at 2:00 p.m. PDT on July 19, 2011 at www.apple.com/quicktime/qtv/earningsq311. This webcast will also be available for replay for approximately two weeks thereafter.
This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 25, 2010, its Forms 10-Q for the quarters ended December 25, 2010 and March 26, 2011, and its Form 10-Q for the quarter ended June 25, 2011 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.