Apple racks up another monster profit
Apple may be taking a battering over the iPhone antenna, but it continues to mint huge piles of cash.
The company’s array of smart and sexy devices drove earnings 78% higher in the second quarter, beating Wall Street estimates.
It sold a record 3.47 million Macs in the quarter, up 33% from a year ago, 8.4 million iPhones – up 61% - and 3.27 million units of its new hit, the iPad.
“It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” said CEO Steve Jobs.
The company announced net profit of $3.25 billion on record sales of $15.7 billion, 61% higher than the year-ago quarter.
Its gross margin of 39.1% was down slightly from the 40.9% a year ago, possibly as a result of the iPad, which has a lower margin than the Mac or the iPhone.
However, analysts said there was no sign that the iPad was cannibalizing computer sales, the New York Times reported.
CFO Tim Cook said in a conference call the antenna controversy had not affected sales.
The company will give away free cases to iPhone owners to reduce the signal loss, caused when the iPhone 4 is gripped on the lower left hand side of the device.
Apple says it will defer about $175 million in revenue until the December quarter as a result of the issue.