iPhone 4, iPad fuel growth
Apple has outdone itself once again. The outfit has reported record earnings for the second quarter of 2010 and its optimistic Q3 guidance has surprised even optimistic market watchers.
Apple posted record breaking revenues of $15.7 billion and net quarterly profit was $3.25 billion, or $3.51 per share. Analysts were somewhat cautious on tech stocks due to seasonal trends, but it appears that Apple’s shipments weren’t affected by the slow market.
The outfit managed to sell 3.27 million iPads and 8.4 million iPhones. It’s worth noting that the majority of iPhones shipped in the last quarter were in fact old 3GS models, so sales could improve in the current quarter, as users transition to the new iPhone 4. MacBook sales were also strong and with 3.47 million units Apple has set another quarterly record. iPod sales are gradually declining, but Apple has no reason for concern as most iPod users are simply giving them up in favor of the much pricier iPhone.
Although some analysts were concerned about iPhone 4 antenna issues and the possibility of a very costly recall, Apple has come up with a much cheaper solution. The recall would have cost it more than $1.5 billion, but Apple chose to offer free rubber bumpers instead, at a cost of $175 million.