Blockbuster sales of the iPhone and strong Asian business again helped Apple Inc crush Wall Street’s expectations, driving its shares up more than 7 percent to record highs.
Sales of its iconic products far outpaced forecasts, helping drive a near doubling of revenue in the fiscal third quarter. Its shares leapt to a high of US$405 after a brief after-hours trading suspension.
Apple sold 20.34 million iPhones during the quarter versus an expected 17 million to 18 million, which analysts say helped it vault past Nokia and Samsung Electronics to become the world’s biggest smartphone maker.
Apple’s earnings beat was spectacular even by its own lofty track record. Its quarterly earnings per share beat the average forecast by 33 percent, versus beats of about 20 percent in the past two quarters.
The stellar results came as concern over iPad 2 supply constraints eased, with Apple chief financial officer Peter Oppenheimer saying more than 1 million iPads remained in stock at the end of last month, but demand was still outstripping supply in some markets.
Oppenheimer also hinted at an upcoming product launch, saying it would impact the September quarter, but he gave no details.
In coming months, Apple is expected to roll out a new iPhone, which is likely to give the world’s most valuable technology company another shot in the arm and offer a stiff challenge to rivals, such as Research in Motion Ltd and Google Inc.
The Cupertino, California-based company said its fiscal third-quarter revenue climbed 82 percent to US$28.57 billion, trouncing the average analyst estimate of US$24.99 billion, according to Thomson Reuters I/B/E/S.
The company posted net income for the fiscal third quarter ended June 25 of US$7.31 billion, or US$7.79 per share, up from US$3.25 billion, or US$3.51 per share. Analysts on average had expected Apple to report US$5.85 per share, according to Thomson Reuters I/B/E/S.
Oppenheimer attributed the big margin boost to higher sales of the iPhone, particularly in Asia. International sales accounted for 62 percent of the quarter’s revenue.
Apple chief executive Tim Cook told analysts they were particularly optimistic about the Greater China market, which includes China, Hong Kong and Taiwan, where Apple’s year-over-year revenue was up sixfold at US$3.8 billion. Overall, Asia-Pacific revenue more than tripled to US$6.3 billion in the quarter.
“I firmly believe that we are just scratching the surface right now,” Cook said of China. “I think there is an incredible opportunity for Apple there.”
Cooks also remarked on Apple TV, one of the few Apple products that has not really connected with consumers, saying it still had a “hobby status” within the company.
Apple sold 9.25 million iPads and 3.95 million Mac computers. Gross margin for the quarter came to 41.7 percent.
Based on a share price of US$400, Apple would have a market capitalization of US$369.9 billion, putting it close to Exxon Mobil, the largest company in the S&P 500 index, which has a US$411.97 billion market value.
Apple, notorious for its conservative forecasts, estimated earnings for the September quarter of US$5.50 a share on revenue of US$25 billion, below analysts’ average estimate of US$6.45 a share on revenue of US$27.7 billion.
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