Apple reports 94% year-on-year profit increase

Apple reports 94% year-on-year profit increaseIf you thought Apple’s sales might suffer in the post-Christmas depression, think again. Apple has announced the results for its Q2, ending March 31 2012, and we’re officially talking crazy money.

Ultimately, Team Cupertino posted quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion. Good gods.

To give those figures some context, Apple posted revenue of just (ahem) $24.7 billion and net profit of $6.0 billion in the same quarter last year. That’s a 94% year-on-year increase in profit.

Apple sold 35.1 million iPhones in the quarter, and 11.8 million iPads. Of course, the new iPad was only available for a couple of weeks right at the end of the quarter, which makes that figure all the more impressive.

Cook & Co also punted 7.7 million iPods, which isn't too bad considering they’re arguably redundant if you have an iPhone, however sales were down 15% compared to the same quarter in 2011.

“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” screamed Tim Cook, Apple’s new(ish) CEO. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”

Peter Oppenheimer, Apple’s CFO, added: "365 million iOS devices are now in play, with over 50 million sold this quarter. The App Store has over 600,000 apps, with over 200,000 apps specifically for iPad. iCloud has over 125 million customers signed up since its launch in October."

Not too shabby, Apple. Not too shabby at all.

via: Apple

Read more about: Apple iPad 3Apple iPhone 4SiOSApple iPad 2Apple iPhone 3GSApple iPhone 4

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32 comments

BarringtonBallBags  Apr. 25, 2012 at 11:08

It's easy to make a profit when you sell over priced rubbish to dumb sheep.

JanSt / MOD  Apr. 25, 2012 at 11:46

It's easy to make a profit when you sell over priced rubbish to dumb sheep.

Playing devil's advocate:
Define "overpriced"!? iPads are cheaper than high-end Android tablets and have a better resale value. If that is rubbish, well toss me in the garbage truck...

Dumb sheep? See above. Better resale value, more interchangeable, back- and forward compatible accessories... Sheepish choice? Maahaa... shear me and call me Dolly!

Also: "over-priced" compared to what? Most people (oh, sorry: sheep) buy their phones on hostage contract deals, and they believe their phones are free. That goes for most buyers, whatever OS! 90%+ percent of ordinary consumers have no idea how much a simfree mobile phone is. iPhone, HTC One X, Nokia 1110... "free, innit?"

16GB Nokia N9 was £600-ish initially, as was the Lumia... as was the Galaxy Note initially... None of those phones will reclaim half that in 12 months. The iPhone 4S will. Stupid, really?!

You are talking cliche, not fact.
You are totally free to criticise Apple or whoever, but why not stick to reality, rather than selective perception and long-debunked prejudice?

corgi74  Apr. 25, 2012 at 12:14

All this overpriced rubbish to dumb sheep stuff does my head!!

1. People obviously don't know the difference between overpriced or expensive. If it was overpriced it wouldn't sell at that price. Something can be expensive but not overpriced. That's basic economics.
2.The dumb sheep line is just spouted by contrarians who consider themselves tech experts. Four years ago in a world of N95s they would be the ones showing everybody the Zippo app on their new iPhone acting like Columbus showing the natives beads.
Fast forward 4 years and their girl friends and mums have iPhones and are using them to play Angry Birds or Temple Run.
These people can't be seen to use something so common and populist as it against their believed tech principles so they have to deride the item and champion another less populist product as better because it's used by tech savvy people like them (ahem). They will find a tenuous at best reason why the product is inferior (such as iTunes!!) and spout the mantra to anybody they meet like a Buddist chant until they believe it themselves.
Much the same as people saying they liked a band before they became popular but now they're rubbish.
These are the same people now getting excited about the new Galaxy in much the same way as the people the consider to be sheep get excited about the new iPhone and they don't get the irony!!!
JUST ADMIT YOU DONT LIKE IPHONES BECAUSE YOUR GIRLFRIEND HAS OR WANTS ONE!!!

JanSt / MOD  Apr. 25, 2012 at 12:16

hahahahahaha ....

SpeedyG  Apr. 25, 2012 at 13:01

If he has a girlfriend lol.

corgi74  Apr. 25, 2012 at 13:24

If he has a girlfriend lol.

+1

jaybear88  Apr. 25, 2012 at 14:15

Behave you lot,

- The "Overpriced" view comes from the initial iPhone release where you could only get it on an "O2 iPhone Tariff" which was an extra £5 a month and you had to pay for the phone as well. This was a blatent elitist publicity/money grabbing stunt as you could get alternative handsets on a "normal" handset that were just as capable - minus the marketing gimmick. Since then, it has came down to more acceptable prices and inline with its competitors so it's not really valid in the original sense.

But since "overpriced" is basically "costing more than it is worth", with a profit margin of about 100%, it would mean that you value the "idea" of each individual iPhone at around £300 which, in my POV, is overpriced.

- To the sheep side of things.... this is where most of my annoyance towards Apple comes from. I have to stress that some people should get iPhones, it fits their needs, they actually use the device and it is a very high quality product. BUT you would not believe the sheer volume of people who walk into shops and demand an iPhone...... followed by "just for making calls and texts" or "I want one with really big buttons and no touchscreen" or my favourite, "Just like that one" while pointing to the most basic Nokia in the store. To be honest, the same thing happened with N95's when they hit it big, but Nokia didn't encourage it with gormless marketing like apple does.

jaybear88  Apr. 25, 2012 at 14:16

Sorry for the rant haha

Pondlife  Apr. 25, 2012 at 14:20

25% profit/revenue says it's overpriced.

SpeedyG  Apr. 25, 2012 at 14:26

iPhone sell through their contracts rather than sum free as much, so it depends a lot on the contracts length, cost of phone at the end of the contract and a average buyers willingness to buy a full price sum handset that costs more than the competition in general.

corgi74  Apr. 25, 2012 at 14:33

Overpriced is when a product is priced higher than the market is willing to pay so supply outstrips demand. By reducing the price you reach equilibrium where supply equals demand. Reduce it to much and demand will outstrip supply. Therefore based on the laws of economics apple pricing is arguably spot on as demand meets supply without the price being reduced.. However non apple products must be initially overpriced as the price needs to be reduced to increase demand. So basically in the real world the Playbook for example was overpriced when released but the iPad was just expensive.
Overpriced and expensive are not the same thing.

corgi74  Apr. 25, 2012 at 14:36

Overpriced is not costing more than a product is worth in physical terms. An item is overpriced when the market won't buy at that price.

jaybear88  Apr. 25, 2012 at 14:36

SpeedyG, the N95 had a release price of $700ish and the iPhone was $600ish, the competition and costs do not reflect the original sales methods. And now the 4S costs about $188 to produce, I can't find any production costs for the S2 but I would really doubt that it's any cheaper. It really all boils down to public perception of value and not the actual worth of the product. Think along the lines of "the emporers new robes". Shame that all the other manufacturers have seen this practice and decided that they really want a peice of the same action :(

jaybear88  Apr. 25, 2012 at 14:39

I do see where you are coming from corgi but when you look at actual costs of the product, then the RRP, do you not think it is priced higher than it is really worth? When I see short term loan ads on tv with 2000%+ APR I regard them as completely overpriced, but there is still a booming market. Does that make me wrong?

corgi74  Apr. 25, 2012 at 14:40

Thinking about it as there is a usually a long wait for delivery of Apple products when released you could technically argue that as demand is greater than supply they are underpriced.

corgi74  Apr. 25, 2012 at 14:46

Worth,cost and price are all totally different.
A house in London can cost the same to build as one in Middlesbrough but the one in London in will be worth more and be priced higher.. And as demand for houses is greater than supply in London then the £1m house would sell quicker than the £200K house in Middlesbrough which is overpriced for it's market. The market dictates what is overpriced not what the product costs to produce. A product is worth what the market is willing to pay for it. A Playbook was initially priced at £400, costs about £200 to make but the market have given it a worth of £170.

corgi74  Apr. 25, 2012 at 14:47

Excuse poor grammar. Using my phone!

SpeedyG  Apr. 25, 2012 at 14:50

SpeedyG, the N95 had a release price of $700ish and the iPhone was $600ish, the competition and costs do not reflect the original sales methods. And now the 4S costs about $188 to produce, I can't find any production costs for the S2 but I would really doubt that it's any cheaper. It really all boils down to public perception of value and not the actual worth of the product. Think along the lines of "the emporers new robes". Shame that all the other manufacturers have seen this practice and decided that they really want a peice of the same action :(

Customers won't be aware of manufacturing costs, esp. when they see the price difference in the shops.

Everyone wants to make money these days, so don't be surprised they want consumers to pay that little bit more each time for smartphones.

jaybear88  Apr. 25, 2012 at 14:55

Left message then seen loads of replies above!Message deleted by jaybear88

Pondlife  Apr. 25, 2012 at 16:41

Thinking about it as there is a usually a long wait for delivery of Apple products when released you could technically argue that as demand is greater than supply they are underpriced.

Would say that as that's not been the case with the new ipad maybe the tide is turning.

jaybear88  Apr. 25, 2012 at 16:52

Corgi, those differences in prices are due to limited supply and large demand, that is not the case with this kind of product. It's simply an attached or perceived worth. Much like http://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes

Pondlife  Apr. 25, 2012 at 17:00

To be fair jb the new ipads are considerably warmer than the emporers new clothes.

corgi74  Apr. 25, 2012 at 17:26

Message deleted by corgi74

corgi74  Apr. 25, 2012 at 17:26

Corgi, those differences in prices are due to limited supply and large demand, that is not the case with this kind of product. It's simply an attached or perceived worth. Much like http://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes


Any supply of any product is limited by the number of items you can physically produce. A production line can't make any more than 100% capacity of labour or materials. If it is running at 100% then supply is limited to that amount regardless of how much demand is. That's why you get shortages of products like the Wii a few years ago as demand is greater than a limited supply. When demand is greater or equal to supply you can maintain your price.
If a product needs to reduce it's price then supply is greater than demand. This is not an opinion it's a fact. Apple have not needed to reduce their prices as demand is always equal to or greater than supply.
Everybody else has had to reduce their prices as supply is greater than demand.
So an iPad isn't overpriced at £399 but a Sony Tablet S is at £379 hence a reduction to £299 was need to increase demand.
This is nothing to do with opinion, or emperors new clothes, it's the LAW of supply and demand and basic economics.
The fact it's Apple is irrelevant. A Ferrari is expensive and you may consider it overpriced as it's just tyres, metal and an engine the same as other cars but if they make 500 a year and sell all 500 at £250K each then it's not over priced. If they have a waiting list of another 500 people then it's under priced as you could have possibly got 500 people to pay £350K each.

jaybear88  Apr. 26, 2012 at 10:12

Sorry Corgi but we definately disagree on the above point you made. Wii sales were through the roof at one point and then as demand tapered off, Nintendo still produced enough for the customers, cutting price to reflect the difference in demand and the fact that the technology was aging. Apple simply cuts production, causing an illusion of over-demand. Artificial Value, if you will.

http://www.pcmag.com/article2/0,2817,2393553,00.asp

Straw man argument here: A market trader is selling fake gold necklaces. He buys 10 at £3 each and at his stall he has a crowd of 20 people wanting to purchase. He sells them all for £150 each, were they overpriced?

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