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Apple credits iPhone with strong fourth quarter
Published: 23 October, 2008
Tags >> Apple | iPhone
Apple beat Wall Street estimates in its fiscal fourth quarter with earnings of $1.14bn on revenues of $7.9bn. The iPhone took star billing in the company's analyst call, and CEO Steve Jobs boasted that the handset outsold RIM's BlackBerry models during the quarter.
However, investors remained nervous about possible downturn next year, and CFO Peter Oppenheimer admitted that "looking ahead, visibility is low and forecasting is challenging". Apple therefore provided a wide range for its guidance, putting revenue at $9bn-$10bn and earnings per share of $1.06 to $1.35. In the same quarter last year, Apple reported earnings of $904m, or $1.01 per share, on revenue of $6.22bn.
In the quarter, the company sold 6.9m iPhones, taking the company past its goal of 10m for 2008, with two months left in the year. The smartphone now represents 39% of total business and the iPhone App Store expects to see its 200 millionth application downloaded by tomorrow, 102 days since its launch.
With $25bn in cash and no debt, Apple had the "ability to invest our way through this downturn", Jobs said.
