financial results for the third fiscal quarter of 2010

Three more months have passed, and Apple has held its usual quarterly conference with the press and shareholders at which it presents the company’s financial status. This one in particular is long overdue, as it brings together everything gained from the launch of the iPad.

Revenue was $15.7 billion (a 61% growth compared to last year and the highest revenue ever) and profit $3.25 billion, an impressive 78% growth. The profit margin was 39.1%, with 52% of all profits coming from outside the United States. In the words of Steve Jobs, the company’s CEO:

financial results for the third fiscal quarter of 2010
financial results for the third fiscal quarter of 2010

What will those amazing products be? We’ll see in the next few months, but you’re probably referring to the new range of iPod models that will emerge in two or three months at the most. Let’s move on to the extended entry to look at the earnings in detail and see what questions the press has asked.

During these last three months Apple has sold 3.47 million computers, a figure that breaks all previous records . This is very good news, considering that there have been very few upgrades of these computers this quarter. However, people continue to buy Macs as if nothing had happened. Peter Oppenheimer, the company’s CFO, has announced that these three months have generated $4 billion in revenue alone. Almost nothing.

Moving on to the iPhone: 8.4 million phones sold, which is 61% growth when you look at the same quarter last year.

As for iPods, 9.41 million units were sold this quarter, 8% less than last year at the same time.

And for the first time in a press conference article on the financial results of a fiscal quarter, we can start counting the iPads: 3.27 million units sold in these three months that make 2 billion of the profits from the sales of this tablet alone. For a completely new product, that’s a number the competition only dreams of achieving.

I don’t know if you realize one thing: according to Apple, it has broken records in terms of computer sales: 3.47 million as we said. iPads: 3.27 million. 200,000 more units, and the iPad alone would have exceeded the sales of all models of all Apple computers in its best quarter ever . And this is the first quarter that the iPad has been accounted for. I think the way forward is more than clear, although we’ll have to see what Apple has in mind for the Mac sector.

These are the main points discussed in the press Q&A session:

  • Adoption of Apple products by businesses is going well: 80% of the Fortune 100 already trust them. If we look at the iPad alone, it’s already in the middle of those companies in just three months of life.
  • An interesting point: the devices are in stock. They’re in a hurry with the iPad and iPhone stock, and they’re selling them as fast as they can with longer waiting times than they’d like.
  • Apple press releases
  • The matter has come up in the North Carolina data center. Apple said they will finish it by the end of the year and start using it as soon as possible.
  • There are still no reliable figures on the economic performance of iAds.
  • As for the iPad cannibalization we have mentioned, Apple is still not clear about the way forward because according to them it is still early to mark it. At the moment they are happy to have the best sales of Macs ever along with the launch of the iPad.
  • As my colleague Samuel told you a few minutes ago, Peter Oppenheimer has confirmed that Apple will open two Apple stores in Spain by the end of the year: one in Madrid and one in Barcelona. 22 more stores will also open this quarter around the world, including Paris and Shanghai.
  • iPod prices have dropped in the U.S. for a stronger dollar than before and because of back-to-school promotions.
  • Despite the increasing growth of Android, Apple is not afraid of that platform because it is growing at a much faster rate.
  • Spain is mentioned again: Apple has commented that we will stop having one exclusive operator to have three that offer the iPhone, and that there are great challenges to do the same in the rest of the countries that still have an exclusive company.

Apart from other issues that only concern the United States or that have already been repeated on other occasions, this is the most important thing that has been said during the conference. This time, apart from the record numbers of the company, we have taken the good news out of the confirmed Spanish Apple Stores. Now we simply have to wait with the certainty that these stores are no longer a rumour .

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