Apple and Yahoo both increased profit in the second quarter despite the recession and Yahoo’s sinking ad revenue.
With iPhone sales up 626%, Apple beat analysts’ expectations in powering to a €866 million (US$1.23 billion) net profit, up 14%. Revenue increased to €5.37 billion from €5.25 billion a year ago in what the company said was its best ever non-holiday period result.
Apple shipped 5.2 million iPhones in the quarter and users had downloaded more than 1.5 billion applications from the App Store in its first year, CEO Steve Jobs said.
The company expects to see similar profit this quarter, and revenue of between €6.1 billion and €6.2 billion.
Internet ad and search firm Yahoo boosted profit 7.5% over last year to €99.3 million.
Yahoo's cost cutting measures - including plans to cut 5% of its staff - allowed for this growth even though revenue fell 13% to €1.1 billion. Search ad revenue fell 14%, and display ad sales were down 15%, Yahoo said.
Yet the results were largely in-line with analysts estimates, Reuters said.
The company expects revenue of between €1.02 billion and €1.09 billion this quarter, with income from operations totaling between €38.7 million and €46 million.
