Apple Does It Again, Confounding Skeptics (Update 1)
NEW YORK (TheStreet) -- The world can relax now -- Apple(AAPL) had a blow-out earnings report.
The company said it sold 35.1 million iPhones, 11.8 million iPads, 4 million Macs and 7.7 million iPods in its fiscal second quarter. Investors and analysts had been concerned that sales would slow, given possible supply constraints and an aging iPhone.
Apple announced quarterly earnings of $12.30 per share on $39.2 billion in revenue for the second quarter. Analysts polled by Thomson Reuters expected earnings of $10.02 a share on revenue of $36.69 billion. Some $22.7 billion of revenue was from the iPhone, which is now available in more than 100 countries and on 230 carriers.
Speaking during a conference call after market close, Apple CEO Tim Cook said that Apple outgrew the PC market for the 24th straight quarter, with Macs growing 7%, versus 2% growth in PCs.
The technology giant noted on the call that iPhone sales grew 88% year-over-year, and sales have more than doubled in Asia. iPhone sales in Greater China rose five times year-over-year, Cook said. "We are happy with the iPhone pricing moves we made a few months ago on iPhone 3G, iPhone 4," he noted.
"We're thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter," Cook said in a press release. "The new iPad is off to a great start, and across the year you're going to see a lot more of the kind of innovation that only Apple can deliver."
Apple generated $14 billion in cash during the quarter. Third-quarter guidance is expected to come in at $34 billion in revenue and earnings per share of $8.68.
Cash on hand continued to soar, surpassing $110 billion as of the end of March. Some $74 billion of that cash is offshore, according to Apple CFO Peter Oppenheimer.
Apple shares closed the day lower, off 2% to finish at $560.28. Shares of the tech giant, however, are soaring in after-hours trading, up 7.11% to $600.14, according to Nasdaq.com
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