The Apple machine continues to roll, with the company reporting record Q1 financial results featuring record iPod and iPhone sales and dropping some insights onto its future netbook plans.
The company achieved record revenue of $10.17 billion and record net quarterly profit of $1.61 billion. These compare to revenue of $9.6 billion and net quarterly profit of $1.58 billion, in the year-ago quarter.
Apple sold 2,524,000 Macs, 22,727,000 iPods and 4,363,000 iPhones in the quarter, the latter representing 88 percent unit growth over the year-ago quarter.
Gross margin was 34.7 per cent, equal to the year-ago quarter. International sales accounted for 46 per cent of the quarter’s revenue.
“Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple history—surpassing $10 billion in quarterly revenue for the first time ever,” said Steve Jobs, Apple’s CEO.
“Our outstanding results generated over $3.6 billion in cash during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2009, we expect revenue in the range of about $7.6 billion to $8 billion and we expect diluted earnings per share in the range of about $.90 to $1.00.”
During a media conference, analyst Ben Reitzes of Barclays Capital asked about Jobs’ health and how it affected the operation and management of the organisation. Chief Operating Officer (COO) Tim Cook took the question, saying Jobs would continue to be involved and explaining, “There is an extraordinary breadth and depth and tenure among Apple’s executive team. And these executives lead over 35,000 employees that I would all call ‘wicked smart’.”
He added that “Apple is on the face of the Earth to make great products, and that’s not changing…we don’t settle for anything less than excellence in every group in the company, and the self-honesty to admit where we’re wrong. And I think regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well. I would just reiterate that Apple is doing the best work in its history,” he said.
On netbooks, Cook admitted the company is looking at the sector, adding that, “right now, we think the products there are inferior and will not provided an experience to customers that they are happy with.”