Apple posts $1.23 bln profit in latest quarter

July 22, 2009 01:33:12 PM

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Apple on Tuesday reported 1.23 billion dollars in profit in its latest fiscal quarter on strong sales of iPhones and Macintosh computers.

Apple said the quarter that ended June 27 saw profit of 1.35 dollars per share as compared to 1.19 dollars per share, or 1.07 billion dollars, in the same period last year.

The Cupertino, California-based company reported revenue of 8.34 billion dollars in the quarter as compared to 7.46 billion in revenue in the same three-month period in 2008.

"We're making our most innovative products ever and our customers are responding," Apple chief executive Steve Jobs said in an earnings release.

"We're thrilled to have sold over 5.2 million iPhones during the quarter and users have downloaded more than 1.5 billion applications from our App Store in its first year."

The strong earnings could help dispel recurring concerns that Apple's fate rests on the health of Jobs, its world-renowned front man credited with reversing the company's fortunes with his return to the helm in 1996.

Late last month, Jobs returned from a six-month medical leave of absence during which he underwent a liver transplant. Jobs underwent treatment for pancreatic cancer in 2004 and Apple has been tight-lipped about his health.

Despite Jobs being absent for the recently-ended quarter, sales of iPhones reportedly rocketed 626 percent and sales of Macintosh computers rose to 2.6 million, four percent higher than the same quarter last year.

However, sales of iPod MP3 players dipped seven percent to 10.2 million in a year-over-year comparison, Apple reported.

"We're extremely pleased to report record non-holiday quarter revenue and earnings and quarterly cash flow from operations of 2.3 billion dollars," said Apple chief financial officer Peter Oppenheimer.

"We are very proud of this result, particularly given the economic climate around us."

Oppenheimer said Apple expects revenue in the current quarter to be in the range of 8.7 to 8.9 billion dollars and earnings per share to be from 1.18 dollars to 1.23 dollars.

Apple anticipated declining sales of "traditional" iPod devices and that was one of the reasons it created iPhone smart phones with MP3 capabilities, according to Oppenheimer.

Apple expects to see sales of most iPod models ebb annually but significant growth in purchases of iPod Touch devices, essentially iPhones without telephone capabilities.

"We have a great business we expect to last many, many years," Oppenheimer said of the evolving iPod line.

Demand for iPhone 3G S models has outpaced Apple's ability to deliver since the new-generation smart phones hit the market in June, according to Oppenheimer.

"We are currently unable to make enough iPhone 3G S to meet high demand and we are working to improve that," Oppenheimer said.

IPhone 3G S devices are sold in 18 countries and Apple is intent on expanding to new markets, according to company executives.

Selling iPhones in China continues to be a priority and Apple hopes "to be there within a year," said chief operating officer Tim Cook.

IPhones are gaining ground in small businesses and companies that let employees pick their smart phones, according to Cook.

"We think we are just at the tip of the iceberg in terms of what the iPhone can do with business customers," Cook said.

Apple reported that its online shop iTunes had another strong quarter and sold its eight-billionth song last week.

Recent price cuts and upgrades to MacBook laptop computer models spurred sales in the quarter, according to Apple.

Apple has no plans to get into computer price wars or compete in the low-price, minimal-performance netbook market that has been hot in the tough economic climate.

"Our goal is to build the best," Cook said. "Whatever price points we can build the best at we will play there. We don't see a way to build a great product for 399 dollars, 499 dollars; this kind of price point unit."