Apple today announced financial results for its fiscal 2007 third quarter ended June 30, 2007. Apple posted revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share. These results compare to revenue of $4.37 billion and net quarterly profit of $472 million, or $.54 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent, up from 30.3 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.
Apple shipped 1,764,000 Macintosh computers, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac shipments by over 150,000. The company also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter. Apple did not release an exact number of iPhones sold. Apple stated the company sold 270,000 units of “iPhone (4GB and 8GB models combined) and related products and services” which “consists of iPhones and Apple-branded and third-party iPhone accessories” in less than two days of quarter.
“We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO, in the press release. “iPhone is off to a great start — we hope to sell our one- millionth iPhone by the end of its first full quarter of sales — and our new product pipeline is very strong.”
“We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65.”
Apple will provide live streaming of its Q3 2007 financial results conference call utilizing QuickTime, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, July 25, 2007 here and will also be available for replay.
MacDailyNews Note: Analysts’ consensus estimates for Apple’s 3rd fiscal quarter expected revenue of $5.28 billion and net income of $645.6 million, or 72 cents per share, up from $472.0 million, or 54 cents per share, for the year-ago period. Apple CFO Peter Oppenheimer’s guidance for Q3 07 expected “revenue of about $5.1 billion and earnings per diluted share of about $.66.”
5:28pm EDT: In after-hours trading, APPL shares stand at $144.83, up $7.57 from their $137.26 closing price.
Apple’s recent earnings and unit sales information:
2007:
• Q3 (ended 06/30/07): revenue $5.41 billion, net profit $818 million, 1.764 million Macs, 09.815 million iPods
• Q2 (ended 03/07/07): revenue $5.26 billion, net profit $770 million, 1.517 million Macs, 10.549 million iPods
• Q1 (ended 12/30/06): revenue $7.10 billion, net profit $1 billion, 1.606 million Macs, 21.066 million iPods
2006:
• Q4 (ended 09/30/06): revenue $4.84 billion, net profit $546 million, 1.610 million Macs, 08.729 million iPods
• Q3 (ended 07/01/06): revenue $4.37 billion, net profit $472 million, 1.327 million Macs, 08.111 million iPods
• Q2 (ended 04/01/06): revenue $4.36 billion, net profit $410 million, 1.112 million Macs, 08.526 million iPods
• Q1 (ended 12/31/05): revenue $5.75 billion, net profit $565 million, 1.254 million Macs, 14.043 million iPods
2005:
• Q4 (ended 10/11/05): revenue $3.68 billion, net profit $430 million, 1.236 million Macs, 06.451 million iPods
• Q3 (ended 07/13/05): revenue $3.52 billion, net profit $320 million, 1.182 million Macs, 06.155 million iPods
• Q2 (ended 03/26/05): revenue $3.24 billion, net profit $290 million, 1.070 million Macs, 05.311 million iPods
• Q1 (ended 12/25/04): revenue $3.49 billion, net profit $295 million, 1.046 million Macs, 04.580 million iPods
2004:
• Q4 (ended 09/25/04): revenue $2.350 billion, net profit $106 million, 836,000 Macs, 02.016 million iPods
• Q3 (ended 06/26/04): revenue $2.014 billion, net profit $61 million, 876,000 Macs, 860,000 iPods
• Q2 (ended 03/27/04): revenue $1.909 billion, net profit $14 million, 749,000 Macs, 807,000 iPods
• Q1 (ended 12/27/03): revenue $2.006 billion, net profit $63 million, 829,000 Macs, 733,000 iPods
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@chrissy: you were so on the money!
apple’s going to the top… this stock is rocking and so much more to go! second and third generation iphones, the euro invasion… it only just got started!
You will live to see it.
MDN MW:justice
@Imagining
IBM, the big blue, the hardware maker to which computers were compared: remember “IBM-compatible”?
Overtaking IBM would basically mean Apple is financially the most valuable computer hardware-maker.
When a company thought to be on its death bed 7 years ago, becomes the leader of the industry (not that it hadn’t been the leader in design, engineering, security and OS quality), the history writers start receiving book offers, and this company’s business model becomes mandatory reading in finance and management schools.
Including what has happened in the after hours market, AAPL’s market cap has now surpassed that of HPQ!!! So now they’ve not only passed (and nearly doubled) Dell’s value, Apple is now worth more than HP. Amazing.
Some corrections –
The RAZR had sold 50 million units according to Ed Zander in May 2007. That makes it #2 in sales behind the Nokia 1100 wish has sold around 200 million to date. The first months sales of the RAZR were 250k (the OLD first month record), and the first month for the Moto Q was 150k.
MW: ‘forward’
=)
Thanks Apple.
That sweater Ballmer and Mr Dell… must feel hapless
Let’s hear it for the lame-o nay sayers who predicted Apple’s earnings would fail to meet expectations this quarter. Those people should really consider switching to a job they’re qualified for, like selling shoes.
“When a company thought to be on its death bed 7 years ago, becomes the leader of the industry “
Dont confuse having the highest market cap in an industry with being the leader in that industry.
Clearly Apple’s a long way away from being the leading player in any industry except mp3 players.
“The first months sales of the RAZR were 250k (the OLD first month record),”
A record, given that Apple’s sales were of phones and accessories may even still stand.
Lets say on average people brought one accessory per 1.2 phones sold, that would make the 146,000 number for phone activations roughly match with Apple’s numbers for phones and accessories sold.
@Neven
u are right, AAPL up 9% aftermarket, 150.18 !!!!
MW increase 😀
!!!!
!!!
!!
!
Reality Check posted: So Apple sold 270,000 iPhones in 30 hours. That’s hardly poor. Also goes to show that far more than 2% had activation problems since AT&T only activated 146,000 of the 270,000 sold in the first 30 hours.
Let’s not forget all of the people who bought an extra iPhone during the first 2 days to sell on eBay or elsewhere. I’m sure that these “extra” iPhones were not activated immediately. There is no reason to believe that they were not activated due to activation problems with AT&T.
@ Imagining
yes, overtaking IBM is like killing your father.
MW: Market 😀 (i’m so lucky today)
Does this bump Apple up to the number 3 slot in US computer makers?
@ WindozeBloze
many of those iPhones were gifts, or phones bought for colleagues.
or for anyone in the MW “family” 😀
MW is brilliant today
@ SlipperyWhenWet–
Are you kidding? What do you think the whole computer industry has copied and emulated for years? There’s so much to say to rip apart your post! Oh well. Maybe someone else….
“AT&T only activated 146,000 of the 270,000 sold in the first 30 “
Lets remember some of those 270,000 “phones” are cases, headphones, bluetooth mics etc which need no activation…
Worst case Apple sold a little over 146k phones and 154k accessories. Best case they sold maybe 200k assuming about a 25% attachment rate for accessories, which would be quite conservative.
There are about 550 iPhones on ebay at the moment, so lets assume that if people did buy them for that, all but 550 sold them or sent them back already, so even if they were sales last quarter they’ll be returns this quarter. And since there is no iPhone shortage, undoubtedly nobody is trying to buy iPhones to sell on ebay any more.
You’ve got to bet that the number of accessories was quite high, otherwise they would have just reported the straight iPhone numbers without trying to fudge them by mixing in the accessories to make them sound higher. As you can see here a lot of people missed the subtlety and thought Apple said they sold 270,000 phones.
$150.18!!! The WOW starts yesterday, today and tomorrow!!
“Are you kidding? What do you think the whole computer industry has copied and emulated for years? There’s so much to say to rip apart your post! Oh well. Maybe someone else….”
Did you forget why Apple switched over to Intel and abandoned PPC, breaking the hearts of more than a fair share of Mac afficianados (MDN included)? Apple was nowhere near an industry leader in terms of computer hardware.
“Are you kidding? What do you think the whole computer industry has copied and emulated for years?”
Who give s a shit if people “copy” and “emulate” Apple. they’re being much more successful at selling stuff than Apple is.
So your point is quite irrelevant.
It’d be like coming home and telling your spouse that you’re the top performer in your company because some other guy saw what you did and emulated it got a really big bonus and a promotion, but you got nothing because while you had the idea you just couldn’t execute on it.
Do you think they’re going to think you’re the king because the other person got the idea from you, or that you’re whining loser trying to bask in somebody else’s glory?
in the real world results count.
quite
“Did you forget why Apple switched over to Intel and abandoned PPC, breaking the hearts of more than a fair share of Mac afficianados”
This is just propaganda spread by Apple’s enemies. Apple was using Intel processors before anybody else. How else would it be possible that everybody is following the hardware direction that Apple sets? If Apple didn’t use Intel processors first, then Apple would be following everyone else, and that’s just not possible.
I had the best burger in the world once. It’s by some company named McDonald’s. It’s the best because it sells a shitload.
I drove the best car in the world. It’s made by GM. They’re everywhere.
Same with the best music: Michael Jackson. Best shampoo: Suave. Best way to deal with stress: drug abuse. Best way to parent a child: corporal punishment. Best newspaper: The Enquirer. Best religion: Islam. Best food: pizza. Best human being: Paris Hilton. She’s everywhere. Best planet: Mars. You can’t go anywhere these days without running into red dust.
Best stupid argument: ubiquity equals superiority.
Best retort: Yo’ mama.
Once.
At $157, Apple will overtake Intel.
At $177, Apple will overtake IBM.
In Apple’s rear view mirror are HP, Dell, Lenovo, Sony, Gateway, AT&T, Verizon, Toshiba… etc.
In terms of market cap, Apple is now the number 2 computer maker if you count IBM, and if you don’t, it is number 1.
The only tech company of significance that is beyond Apple’s reach at present (but perhaps not for long) is MS. AAPL would have to reach $328 to overtake MS at present.
You idiots better re-read the article. It does NOT say that Apple sold 270,00 iphones.
It says “the company sold 270,000 units of “iPhone (4GB and 8GB models combined) and related products and services” which “consists of iPhones and Apple-branded and third-party iPhone accessories”
The operative here is 270,00 UNITS of iphones and accessories.
A unit is an iphone. A unit is also an accessory. Cut the number in half and you might have a closer approximation of the number of iphones.
Humm, let’s see: 1.7 Million Macs sold and this with the Leopard delay and supposedly the bad inpact that would have?
Wait for a historical 2 Mill Macs in one Q when the new baby is out!