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Apple’s profit doubles!

If I were the type to gloat, :-) I’d say, “I told you so.”

I was one of those who recognized the superiority of Apple’s products many years ago.

I give two reasons for liking Apple: 1) superior software and 2) superior hardware. :-)

According to CNN, Apple set record upon record today, with all-time highs in quarterly profit and revenue, stock price, and iPhone and iPad sales. When I think of all that the company has been through, I want to cheer! Apple posted a quarterly sales record for the iPhone, which surprised some! :-) Analysts are often wrong and still get paid – I WANT that job (second best after meteorologist)! 😉

COO Tim Cook explained Apple’s sale of 20.34 million iPhones in its third fiscal quarter by strong sales in emerging markets like China, Latin America, Brazil (which I always THOUGHT was in Latin America! :-) ), and the Middle East. The sale of iPhones easily outpaced the average ANALYST estimate poll in Fortune of 16.9 million units and was a 142% increase from the same quarter last year.

Apple did not comment when a new version of the iPhone would be released. For the first time since the iPhone was released in 2007, Apple did not release a new version in June. Peter Oppenheimer, Apple’s CFO, spoke today about a somewhat mysterious “future product transition” that will take place during the current quarter!

CNET, in contrast to CNN, “cut right to the chase” with Apple’s reported profit of $7.31 billion or $7.79 per share for the quarter ended June 19. But even before CNET cut to THAT chase, it mentioned that the next version of MacOS X, Lion, will be launched TOMORROW! CNET said:

“Revenue for the quarter was $28.57 billion, up nearly 82 percent from the same quarter a year ago, and another record for the Cupertino, Calif.-based tech giant. The performance was $1.99 per share above the average estimate among analysts surveyed by Thompson Reuters’ First Call, which pegged revenue at $24.92 billion, or $5.80 per share.”

Apple reported a gross margin of 41.7 percent, up 1.6 percent from the same quarter last year. A statement by Steve Jobs said:

“We’re thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent,” Apple CEO Steve Jobs said in a statement. “Right now, we’re very focused and excited about bringing iOS 5 and iCloud to our users this fall.”

Apple did not give dates for the release of iOS 5 or iCloud.

As for iPad 2, it was the first full quarter of sales for the device. Apple sold 9.25 million iPads during the quarter. Expected shipping dates for the iPad fell to within one to three days after an order is placed. The iPad 2 had at one point been shipping as much as five to six weeks after sales.

According to CNN:

“Apple sold 33 million iOS devices in quarter, including the iPod Touch, iPhone and iPad, which works out to about 367,000 devices per day. But Apple’s chief iPhone and iPad rival, Google (GOOG, Fortune 500), impressed Wall Street last week when it said its Android operating system is activating 550,000 devices each day — about 50% more than Apple.”

Ah, but can they SKYDIVE?!!

As for Macintosh, Apple sold 3.95 million computers during the third quarter, UP :-) from a record-setting 3.47 million Macs sold during the same quarter last year. Tim Cook explained that there was some cannibalization of Mac sales by iPad:

“We do believe that some customers chose to purchase an iPad instead of a new Mac during the quarter,” Cook said. “But even more customers chose to buy an iPad over a Windows PC. As I’ve said before, there’s a lot more of the PC Windows business to cannibalize than the Mac.”

Cook’s statement was confirmed by a recent Gartner Group report, which said that U.S. PC sales fell by nearly 6% last quarter, yet sales of Macs grew 8.5% over the past three months, which makes Apple the U.S.’s third-largest PC seller.

Apple ofter speaks to the “halo effect” that causes satisfied buyers of iPods, iPhones, and iPads to buy the more expensive Macs as their computer choice in their next purchase. Even some of the most “die-hard” Windows PC users I know (people who should KNOW better 😉 ) also own iPhones or iPads! It is AMAZING to me!

The sales of iPod continued to decline, with 7.54 million sold, down 20% from the 9.41 million sold in the same quarter last year.

Although Apple did not mention Apple TV in the earnings report, it did comment upon the product in the earnings call:

“Apple TV continues to do well, but I don’t want to mislead,” Cook said. “We still call it a hobby here. We do that because we don’t want anyone to conclude that it’s another leg of the stool. It’s just not in the same market as the iPhone, iPad, or iPod. Our customers love the product. We got it right when we went to the new Apple TV in the fall, but it’s still in the hobby status. [However,] we continue to invest in it because we think there’s value there. “

CFO Peter Oppenheimer, in his guidance for next quarter, expects $25 billion in revenue and projected earnings of $5.50 per share, a significantly lower :-) estimate than Wall Street’s $6.36 consensus.

Apple’s stock was trading at $396.70 in after-hours trading, up $19.65, or 5.25 percent.

-Bill at

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