Did you hear? Each and every one of Apple's offerings print money--or at least you'd think so after listening in on the company's third quarter financial results released this afternoon via Quicktime, phone and as a good-old fashioned PDF earlier this afternoon.
Listening in, you just knew it was going to be good news (as if there was ever any doubt) from the enthusiasm in Peter Oppenheimer's voice as he made a few state of the union comments surrounding Apple's third-quarter, which ended in June, before getting down to the nitty-gritty.
"We are extremely pleased to report outstanding results for the June quarter...we're thrilled to announce today our highest quarterly revenue ever," Oppenheimer stated. He added that this quarter surprassed the previous record set in the most recent holiday quarter.
During Q3, or the June quarter if you prefer, Apple had its hands full. Cupertino shipped iPads to an eager horde of customers in 10 different countries, launched iPhone 4 and fired off iOS 4 to boost the feature set of their existing smartphone handsets (provided those handsets happened to be of the 3G or 3GS variety). On top of it all, the company managed to set a new quarterly record for the number of Mac computers sold, thanks to the growing popularity of both the iMac and MacBook Pro lines. According to Apple, of those individuals who opted to purchase Macs during the June quarter, half could be attributed to computer users who'd never owned a Mac before.
Getting down to the meat of the financial details, Oppenheimer reported revenue to be $15.7 billion--that's an increase of 61% over the prior June (2009) quarter's results. What was behind all those Benjamins? According to Oppenheimer, the iPad's popularity had a lot to do with it, as well as strong sales of the iPhone and Mac lines. Apple's Q3 operating margin was $4.23 billion, representing 26% of revenue. Apple's net income during Q3 was $3.25 billion, which marks a 78% increase over the year ago quarter, making for an earnings per share number of $3.51.
As for how each of Apple's products did in the past quarter, here's the break down:
Macs
Did they sell any? You betcha. Apple moved 3.7 million macs into the hands of consumers during Q3. That's a quarterly record for them. Oppenheimer also reported record sales to educational institutions and business, despite shrinking purchasing budgets in both sectors.
iPods
9.4 million iPods were sold during the June quarter, compared to 10.2 million in the year ago quarter. Despite the deceptively lower numbers, iPod revenue went up by 4%. The iPod's share of the MP3 player market still remains high at over 70%. The iPod line also continues to gain bigger and bigger market shares internationally. Hail to the King.
iTunes
The iTunes Store's revenue exceeded $1 billion dollars, and showed growth of 25% year-over-year. The App Store currently boasts over 225,000 Apps--11,000 of those are specifically designed for the iPad. iDevice users have collectively downloaded over 5 billion Apps. That's a whole lotta Doodle Jump.
iPhone
Apple sold 8.4 million iPhones in the last quarter, including 1.7 million iPhone 4 handsets. That represents 61% year-over-year growth and is higher than was expected by analysts. All in, Apple realized revenues of $5.33 billion from handset and accessory sales as well as carrier payments. The sales value of iPhones alone was approximately $5 billion. Apple currently distributes the iPhones with 184 carriers in 88 countries. When asked about whether there was any dip in sales that could be attributed to the antenna problems surrounding the iPhone 4, the response from Apple's Chief Operating Officer Tim Cook was blunt. "Let me be very clear on this," Cook said. "We're selling as many as we are making."
iPad
3.27 million iPads were shipped by Apple by the end of the June quarter. Recognized revenue from sales of the iPad and iPad accessories during the quarter hit $2.71 billion. The iPad alone made close to $2.1 billion.
Apple Retail Stores
Apple's retail arm made $2.58 Billion during Q3, marking a revenue increase of 73% over the same period a year ago. Apple opened seven new stores during the quarter, making for a total of 293 stores. Average revenue per store during the quarter was $9 million. 6.5 million people visited Apple Retail locations in the last quarter. That is, you guessed it, a new record as well.
Apple reported quarterly operating expenses of $1.9 billion, which given the amount of cash they've been drawing in, ain't all that bad. What's more, Oppenheimer could hardly contain the glee in his voice as he reported that the company had close $ 45.8 billion in cash from short-term and long term marketable securities. Cash flow from operations was $4.8 billion. Oppenheimer told those listening that Apple's investment priorities for all those greenbacks was preservation of capital and "continuing to focus on relatively short-dated, high-quality investments."
Not surprisingly, Apple has opted to defer inclusion of any profits made from the sale of iPhone 4 bumper cases for the time being. This of course, is due to the fact that they'll be giving scads of the things away for free to iPhone 4 owners who'd like to have one on hand in order to resolve any reception issues they may be suffering as a result of the antenna issues associated with the handset. Oppenheimer told listeners that the financials surrounding the bumper cases would be readdressed in September.
That's the broad strokes, folks. If you've got a hankering to hear the full Apple Q3 financials conference call, the audio is available to stream over Quicktime for the next few weeks. For a deeper look at what's behind all that money, you might also want to turn your attention to the company's recent SEC submission [PDF link].
