Apple’s net income shot up by 47 percent in its fiscal fourth quarter based on continued strong sales of its iPhone smartphone and Mac computers, the company said today.
Apple recorded net income of $1.67 billion on revenue of $9.87 billion in the quarter ended Sept. 26, up from net income of $1.14 billion on revenue of $7.9 billion, in the same period of last year. The revenue gain was 12 percent while the net income, or profit, growth was 18 percent.
Apple credited record sales of 3.05 million Mac computers in the quarter, up 17 percent from a year ago, and record sales of 7.4 million iPhones, a seven percent jump, for its strong financial results. Sales of iPod media players declined eight percent, however, to 10.2 million units.
Since its introduction in June 2007, the iPhone has had a target on its back as competitors seek to introduce a smartphone that can attract its almost fanatical user base. Palm positioned its Pre smartphone as an iPhone killer when it was introduced in June of this year, but its price is now being discounted to win sales. Motorola is planning to introduce the “Droid” smartphone to run on Google’s open source Android operating system through the Verizon Wireless network in the U.S. The iPhone runs on rival AT&T’s network. Early buzz about Droid, which was teased in ads during this past weekend's sports telecasts, is that it is well positioned to challenge iPhone. This article in Wired is typical of the coverage.
But in a conference call with industry analysts Monday afternoon, Apple Chief Operating Officer Timothy Cook remained confident of iPhone’s leadership position.
“People [competitors] are really just trying to catch up with the first iPhone of two years ago and we have moved beyond that,” Cook said. The third-generation iPhone 3GS was introduced in June for a starting price of $199 with a two-year service contract. At the same time, Apple reduced the price of its second-generation 3G to $99, undercutting Palm's efforts to win Apple converts to its $199 Pre.
Apple’s earnings per diluted share (EPS) came in at $1.82 for the fourth quarter, up from $1.26 in the year ago quarter.
Apple revealed its forecast for the current quarter in its release today: Peter Oppenheimer, Apple’s chief financial officer, said they anticipate revenue of between $11.3 billion to $11.6 billion in the busy holiday shopping season and EPS of between $1.70 and $1.78.
For all of fiscal 2009, Apple recorded net income of $5.7 billion, or $6.29 per diluted share, on revenue of $36.5 billion, up from net income of $4.8 billion, or $5.48 a share, on revenue of $32.5 billion in fiscal 2008.
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