Apple Soars Past Earnings Estimates On Strong iPhone Sales
CUPERTINO (CBS/AP) – Apple Inc., the world’s most valuable company, trumped skeptics once again by reporting blowout iPhone sales.
Apple says it sold 35 million iPhones in the January-to-March quarter, almost twice as many as it sold a year ago and above analyst expectations.
Apple’s stock was down 2 percent at the close of regular trading, as investors believed phone companies had reined in iPhone sales. In extended trading, the stock rallied $43.83, or 7.8 percent, to $604.11.
Net income in the company’s fiscal second quarter was $11.6 billion, or $12.30 per share. That was nearly double the net income of $6 billion, or $6.40 per share, a year ago.
Analysts polled by FactSet were expecting earnings of $10.07 per share for the latest quarter, Apple’s fiscal second.
Revenue was $39.2 billion, up 59 percent from a year ago. Analysts were expecting $37 billion.
IPad sales came in below analyst expectations, at 11.8 million units. But that was still two and a half times as many as it sold in the same quarter a year ago. Apple launched a new iPad model in the quarter.
Mac sales were also slightly below expectations, at 4 million.
The relative strength of iPhone sales means they accounted for 58 percent of Apple’s revenue, more than ever. Three years ago, the figure was 27 percent.
As has been the trend the last year, Asia, and in particular China, accounted for much of the revenue growth. A quarter of Apple’s sales now come from Asia, excluding Japan.
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