Apple (NASDAQ: AAPL) once again exceeded all analyst projections to report record sales and earnings on the strength of all of its products except the iPod.
For its third fiscal quarter ended June 26, Apple reported revenue of $15.7 billion and net income of $3.25 billion, or $3.51 per diluted share. The numbers flattened a consensus estimate by analysts surveyed by Thomson Reuters, who had projected per-share earnings of $3.11 on revenue of $14.75 billion.
Apple sold 3.47 million Macs during the quarter, a new quarterly record and a 33 percent increase over the same quarter last year. Yet it also sold 3.27 million iPads — a seeming indication that the iPad is not cannibalizing Macintosh sales, at least for the present.
The company also sold 8.4 million iPhones in the quarter, an increase of 61 percent year-over-year. A modest portion of those are the iPhone 4, which came out June 22, just four days before the end of the quarter. Apple sold 1.7 million units in the first three days, and as of last Friday, CEO Steve Jobs said that the company had sold three million iPhone 4 units in the first three weeks of its release.
iPod sales totaled 9.41 million, an 8 percent unit decline from the same quarter last year. The popular portable audio player has been in steady decline for a while thanks to reaching market saturation.
iPhone sales slowed considerably after the June 7 announcement of the iPhone 4 as Apple let inventory run out. Prior to the announcement, sales were up 90 percent year-over-year, according to COO Tim Cook.
While questions about the iPhone 4’s antenna and spotty reception have been widely reported, the issue apparently hasn’t hurt sales. During a conference call with Wall Street analysts, Cook said the company is selling every phone it can make.
“My phone is ringing off the hook for people who want more supply. Right now, it’s hard to test the reality [about whether there is an effect on sales or not] because we are selling every one we can make. The returns that we’ve seen on the iPhone 4 are less than the 3GS. The ones for this specific issue are extremely small,” he told analysts.
Apple is also selling as many iPads as it can make. “We believe the iPad is defining the market and we want to take advantage of it. We’re investing in capability in getting iPad out to as many people as we can,” he said.
But the Mac is in no danger of being overshadowed. Cook said inside Apple, they have a reverse view. “I think most people externally focus on cannibalization as a negative, and internally we focus on the opposite, the synergy between products. We believe the iPod created a halo for the Mac. As iPod volumes took off, you saw a dramatic change in Mac sales in time if you go back and look at sales. Could that happen on iPhone and iPad? We’ll see,” he said.
He added that if there is any cannibalization by the iPad, it’s likely to be PCs. “If it turns out that the iPad cannibalizes PCs, I think it’s fantastic for us because there is a lot of PCs to cannibalize,” said Cook.
International sales accounted for 52 percent of Apple’s business and international is growing rapidly. Mac grew 70 percent year-over-year in Asia-Pacific, including a 144 percent growth in China, 184 percent growth in South Korea and a near doubling in Hong Kong. Even Spain, which has severe economic hardship, grew by 59 percent year-over-year, he said.
Even though Apple does not actively court corporate customers, it nonetheless has interest. Cook said up to 80 percent of the Fortune 100 are piloting or deploying the iPhone and 60 percent of the Fortune 500 are deploying or piloting it. Around 400 higher education institutions have approved the phone for faculty, staff and students, and 50 percent of the Fortune 100 are deploying or testing the iPad.
Andy Patrizio is a senior editor at InternetNews.com, the news service of Internet.com, the network for technology professionals.
Ethics and Artificial Intelligence: Driving Greater Equality
FEATURE | By James Maguire,
December 16, 2020
AI vs. Machine Learning vs. Deep Learning
FEATURE | By Cynthia Harvey,
December 11, 2020
Huawei’s AI Update: Things Are Moving Faster Than We Think
FEATURE | By Rob Enderle,
December 04, 2020
Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 18, 2020
Key Trends in Chatbots and RPA
FEATURE | By Guest Author,
November 10, 2020
FEATURE | By Samuel Greengard,
November 05, 2020
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 02, 2020
How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 29, 2020
Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 23, 2020
The Super Moderator, or How IBM Project Debater Could Save Social Media
FEATURE | By Rob Enderle,
October 16, 2020
FEATURE | By Cynthia Harvey,
October 07, 2020
ARTIFICIAL INTELLIGENCE | By Guest Author,
October 05, 2020
CIOs Discuss the Promise of AI and Data Science
FEATURE | By Guest Author,
September 25, 2020
Microsoft Is Building An AI Product That Could Predict The Future
FEATURE | By Rob Enderle,
September 25, 2020
Top 10 Machine Learning Companies 2021
FEATURE | By Cynthia Harvey,
September 22, 2020
NVIDIA and ARM: Massively Changing The AI Landscape
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
September 18, 2020
Continuous Intelligence: Expert Discussion [Video and Podcast]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 14, 2020
Artificial Intelligence: Governance and Ethics [Video]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 13, 2020
IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI
FEATURE | By Rob Enderle,
September 11, 2020
Artificial Intelligence: Perception vs. Reality
FEATURE | By James Maguire,
September 09, 2020
Datamation is the leading industry resource for B2B data professionals and technology buyers. Datamation's focus is on providing insight into the latest trends and innovation in AI, data security, big data, and more, along with in-depth product recommendations and comparisons. More than 1.7M users gain insight and guidance from Datamation every year.
Advertise with TechnologyAdvice on Datamation and our other data and technology-focused platforms.
Advertise with Us
Property of TechnologyAdvice.
© 2025 TechnologyAdvice. All Rights Reserved
Advertiser Disclosure: Some of the products that appear on this
site are from companies from which TechnologyAdvice receives
compensation. This compensation may impact how and where products
appear on this site including, for example, the order in which
they appear. TechnologyAdvice does not include all companies
or all types of products available in the marketplace.