Apple's Net Profit Soars Up 78%

July 21, 2010
Revenue increased to a record $15.7 billion from $9.73 billion a year ago.

Strong debuts for the iPad tablet computer and the new iPhone powered gadget maker Apple to a record quarter which blew past the expectations of Wall Street analysts.

The Cupertino, California-based company said Tuesday its net profit rose 78% to $3.25 billion in the fiscal third quarter which ended on June 26.

Revenue increased to a record $15.7 billion from $9.73 billion a year ago.

Apple said it sold 3.27 million iPads during the quarter, raking in an additional $2.1 billion in revenue and nearly matching sales for Macintosh computers.

Apple, which only began selling the iPad in April, said it sold a record 3.47 million Macintosh computers in the quarter.

Apple said it sold 8.4 million iPhones in the quarter, up 61% over a year ago, including 1.7 million new iPhone 4s.

The latest version of the smartphone went on sale in five countries on June 24 and Apple has been dogged by complaints about reception problems due to its unusual antenna design.

Apple announced last week that it will offer free rubber-and-plastic cases designed to address the antenna issue to customers.

Sales of iPod music players were down 8% in the quarter from a year ago to 9.41 million, Apple said.

"It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple's history with iPhone 4," Apple chief executive Steve Jobs said. "iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year."

Apple chief executive officer Peter Oppenheimer said Macintosh sales of 3.47 million in the quarter exceeded the record set in the December quarter by over 100,000 and surpassed research group IDC's estimate of 22% growth for the PC market this quarter.

Oppenheimer said that while iPod sales fell to 9.4 million from 10.2 million a year ago, sales of the more expensive iPod Touch had grown 48% year on year, generating revenue growth of four percent.

Oppenheimer also said Apple expected revenue of around $18 billion in the current quarter.

Copyright Agence France-Presse, 2010

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