Apple Making Big Profits, Disses Netbooks Again
With the iPad, Apple definitely has nothing good to say about the netbook market.
In case it wasn't already obvious, Apple is having pretty great success in the market. The company yesterday revealed its financial results for its fiscal 2010 second quarter ended March 27, 2010.
Apple posted revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share. These results compare to revenue of $9.08 billion and net quarterly profit of $1.62 billion, or $1.79 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent, up from 39.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.
Helping Apple's bottom line is the 33 percent growth of Macs over last year; Apple sold 2.94 million Macintosh computers during the quarter. The real star was the iPhone, however, as Apple 8.75 million iPhones in the quarter, representing 131 percent unit growth over the year-ago quarter. All those iPhone sales may have taken a little away from iPods, however, as Apple sold 10.89 million iPods during the quarter, representing a one percent unit decline from the year-ago quarter.
"Looking ahead to the third fiscal quarter of 2010, we expect revenue in the range of about $13.0 billion to $13.4 billion and we expect diluted earnings per share in the range of about $2.28 to $2.39," said Peter Oppenheimer, Apple’s CFO.
"We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent," said Steve Jobs, Apple’s CEO. "We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year."
During the conference call after the announcement, Apple's COO Tim Cook answered a question regarding if iPad sales could cannibalize those of the MacBook line. While it's too soon to tell as the iPad hasn't even been out a month yet in just a single country, Cook did take the opportunity to boast how much better he feels the Apple tablet is over any netbook.
According to TechCrunch, Cook said, "With the iPad in terms of netbooks — to me it’s a no brainer. It’s sort of 100 to 0. I can’t think of a single thing a netbook does well."