Apple: Sales of iPads and iPhones push profits up 124%

20th July 2011

Strong sales of its iPhones, iPads and record sales of its Mac computers increased Apple's revenues up 90% to US$28.57bn during the last 12 months, while profits were up 124% to US $7.31bn.

Its shares immediately soared following the announcement.

Apple is also set to unveil the fifth version of its iPhone in September, alluding to a "future product transition" then.

The Guardian reports that Apple sold more than double the number of iPhones than it did in the previous year, and 9.25m iPads, almost triple the number sold during its debut quarter in 2010.

"We're thrilled to deliver our best quarter ever," said Apple's chief executive, Steve Jobs, on Tuesday.

The Wall Street Journal reported that members of Apple's board have been talking to executive recruiters about finding a successor to co-founder and chief executive Jobs, who has been on extended medical leave from the company since January, while remaining as CEO.

It reports that the board approached the head of another "high-profile" technology company, apparently for informal soundings. Jobs has dismissed the report.

The New York Times goes with the angle that sales to shoppers in emerging markets and to business customers helped it record record profits.

It reports: "Apple turned its tablet into a $6 billion business in the quarter. That is twice as big as Dell’s entire consumer PC business"

The results helped to lift Apple’s shares 4.5% in after-hours trading, to US $393.81. Apple’s shares had already reached a record high in regular trading, and they are almost certain to do so again on Wednesday.

On the Guardian comment boards readers such as meestersmeeth express regret they didn't buy Apple's shares 10 years ago. "Another earnings call, another sense of regret that I didn't spend some cash on Apple shares a decade ago. Never had any cash spare for it though and who saw this change in fortunes coming, eh? Ah well."

But some wonder how long Apple can sustain its winning streak Gelion writes: "Apple profits up 124% after record iPhone sales" Yeah, but my wife's recently bought Samsung Galaxy II is a better phone than the iPhone 4, and Android smart phones and tablets are taking over the market, so it will be interesting to see how things continue for Apple in this market.

"And I am using a MacBook Pro to write this. Apple products are good in my view, but they don't always justify the 30% – 50% extra price against all the competition out there.

Our next tablet will be an Android one."

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