Apple smashes Street; reports record third quarter results, all-time high Mac sales

Apple today announced financial results for its fiscal 2008 third quarter ended June 28, 2008. The Company posted revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share. These results compare to revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, in the year-ago quarter. Gross margin was 34.8 percent, down from 36.9 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter’s revenue.

Apple shipped 2,496,000 Macs during the quarter, representing 41 percent unit growth and 43 percent revenue growth over the year-ago quarter. The Company sold 11,011,000 iPods during the quarter, representing 12 percent unit growth and seven percent revenue growth over the year-ago quarter. Quarterly iPhone units sold were 717,000 compared to 270,000 in the year-ago-quarter (166% year/year).

“We’re proud to report the best June quarter for both revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO, in the press release. “We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we’re busy finishing several more wonderful new products to launch in the coming months.”

“We’re extremely pleased with the growth of our business and the generation of almost $5.4 billion in cash in the first three quarters of fiscal 2008,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the fourth quarter of fiscal 2008, we expect revenue of about $7.8 billion and earnings per diluted share of about $1.00.”

Apple will provide live streaming of its Q3 2008 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 2pm PDT/5pm EDT on Monday, July 21, 2008 at www.apple.com/quicktime/qtv/earningsq308/ and will also be available for replay.

MacDailyNews Note: According to Thompson Financial’s survey of analysts, Apple was expected to report revenue of $7.4 billion, net income of $972.6 million, or $1.08 per diluted share.

In after-hours trading currently, Apple (AAPL) is down $6.93 (-4.17%) to $159.36 on volume of 4,002,416 shares.

Apple’s recent earnings and unit sales information:

2008:
• Q3 (ended 06/28/08): revenue $7.46 billion, net profit $1.07 billion, 2.496 million Macs, 11.011 million iPods, 717,000 iPhones
• Q2 (ended 03/29/08): revenue $7.51 billion, net profit $1.05 billion, 2.289 million Macs, 10.644 million iPods, 1.703 million iPhones
• Q1 (ended 12/29/07): revenue $9.60 billion, net profit $1.58 billion, 2.319 million Macs, 22.121 million iPods, 2.315 million iPhones

2007:
• Q4 (ended 09/29/07): revenue $6.22 billion, net profit $904 million, 2.164 million Macs, 10.200 million iPods, 1.119 million iPhones
• Q3 (ended 06/30/07): revenue $5.41 billion, net profit $818 million, 1.764 million Macs, 09.815 million iPods, 270,000 iPhones
• 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

64 Comments

  1. Wow, almost 2.5 million Macs shipped! Wonder how conservative their guidance will be for this quarter and how bad the Street will punish them for it? With the runaway success of iPhone 3G it can’t be that conservative.

  2. Next “concern” on wall street will be Apple’s large cash holdings and what to do with it . That should drive the stock down a bit. Seriously, us who know the products and enjoy our computers (for me, a switcher 5 yrs ago, apple made computers fun again) keep buying when the stock is low. 3-5 yrs from from now, it’ll be att 500.

  3. Now I believe when people say Mac sales are through the roof… this is impressive.
    If this company keeps that same growth rate for the Mac for the next 5 years… wow.
    Because if the next 5 years are like the last 5, it means double digit market share worldwide.

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