Apple shrugs off antenna woes as iPhone 4, iPad drive jump in profits
Published 21/07/2010 | 09:59
Apple brushed aside concerns over faulty antennas that have dogged its new iPhone 4 to report a 77pc jump in quarterly profits on record sales.
New products including the iPad and the new iPhone drove customers into Apple’s 293 stores, allowing the company to generate approximately $4bn of new cash in the three months to the end of June.
The consumer technology giant delivered a post-tax profit of $3.25bn (€2.52bn) in the company’s third quarter, against $1.83bn in the same period a year ago.
That was driven by record quarterly sales, of $15.7bn, up from $9.73bn in the same quarter in 2009.
Shares in Apple rose $5.22 – or 2.07pc – to $257.11 in extended after-hours trading after the market had closed in New York.
The new iPhone – despite antenna problems on some handsets – ensured that Apple sold 8.4m iPhones, up by 61pc from a year ago, while some 3.27m iPads have been sold since Apple’s version of a tablet computer was launched in the US in early April.
“These were blow-out numbers,” said Ashok Kumar, analyst at Rodman & Renshaw. “If you put it in perspective, the initial iPhone took 70 days to reach the 1m unit rate...[but] the iPhone4 shipped 1.7m units in the first three days.”
Tim Cook, Apple’s chief operating officer, admitted that the company is not currently able to meet demand for the iPhone 4, stressing it is selling both it and the iPad “as fast as we can make them.”
However he also batted away suggestions that the company restricts supplies in order to yield headlines, saying: “We do not purposely create a shortage for buzz.”
Apple sold 3.47 million Mac computers – itself a new record – suggesting that the iPad may not cannibalise sales, although it did see a slowdown in iPod sales, selling 9.41m, an 8pc decline on a year ago.
Separately Yahoo!, the struggling search engine, disappointed investors after its second-quarter sales fell below Wall Street estimates, as internet advertisers reigned in spending at the end of June.