Apple reports strongest 3Q ever

Share this article:

Apple Inc. reported third-quarter revenue of $5.41 billion, a 73 percent rise in quarterly profit and its highest June quarter revenue.

The report came after the stock fell 6 percent last Tuesday on signs that demand for the iPhone failed to meet investors' expectations. Activations from AT&T Inc., the exclusive carrier of the iPhone, were lower than expected, with 146,000 units activated in the first two days of the sales agreement. Shares fell $8.81, or 6.1 percent, to $134.89 on Tuesday but rose 7.6 percent on Thursday with shares up $10.49 at $147.75 on the Nasdaq.

"Some people got carried away with what they expected Apple to sell," said Michael Gartenberg, vice president and research director at JupiterResearch, New York. "But if you look at the actual sales of all of the products, it is clear that the company is doing very well."

Apple reported selling 270,000 iPhones in the first 30 hours after the product launch.

"That's incredible for consumer electronics, especially when you consider that many buyers had to break their service contracts and change carriers," Gartenberg added.

Peter Oppenheimer, Apple's CFO, said in a press call Wednesday that he expects to sell 1 million iPhones by the end of this quarter. The goal is to sell 10 million units globally in 2008. Apple's net quarterly profit was $818 million, or 92 cents per diluted share, which it attributed to increased Mac sales. The results compare to revenue of $4.37 billion and net quarterly profit of $472 million, or 54 cents per diluted share, in the year-ago quarter.

The company shipped 1,764,000 computers, representing 33 percent growth over the year-ago quarter. The company also sold 9,815,000 iPods during the quarter. International sales accounted for 40 percent of the quarter's revenue.

Share this article:
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.

Metal Mulisha Races Towards Customization

Metal Mulisha Races Towards Customization

The motocross apparel company boosts mobile and Web conversions through product recommendations and personalized search.