Apple beats Q1 forecasts, but not iPad expectations
Tablet sells 1.4m fewer units than analysts had hoped, but Apple claims huge backlog
Published: 21 April, 2011
READ MORE: Financial | Apple | iPhone | Tablet
Apple beat analyst forecasts again with record iPhone sales in its first quarter, though iPads fell below expectations.
Apple's revenue rose 83% year-on-year to $24.67bn, though the figure was 8% lower than the holiday quarter of 2010. Net profit leapt by 95% to $5.99bn or $6.40 a share, which was flat on Q410. Gross margin slipped slightly, from 41.7% a year ago to 41.4%. Analyst consensus forecasts had looked for revenues of $23.34bn and earnings of $5.36 a share.
A strong sign for Apple was that international sales were up to 59% of the total, addressing its historic over-reliance on north America in the mobile business. The iPhone was booming on increased US distribution, thanks to Verizon, and international reach. The handset sold 18.65m units in the quarter, up 113% on the year-ago period.
The news was less good for iPods, down 17% to 9.02m units, and the iPad, which sold 4.69m tablets, fewer than the 6.1m predicted by analysts or the 7.3m of the holiday quarter. CFO Peter Oppenheimer said Apple sold "every iPad 2 we could make", suggesting Apple is experiencing parts shortages. Sony Ericsson had previously cited the Japanese earthquake as a problem for supplies. However, Apple officially said the earthquake was not having a "material impact"and that it was ramping up iPad 2 production as it launches the new product in new territories. "The iPad has the mother of all backlogs," said acting CEO Tim Cook, who said Steve Jobs wanted to be back full time from his medical leave "as soon as he can".
For the current quarter, Apple forecast profit and sales below analysts' predictions, at $5.03 a share on revenues of $23bn, though it traditionally issues conservative guidance. Gross margin will be down to 38% this quarter, the firm said.
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