iPhone 3G drives solid returns for Apple

Executives remain optimistic despite economic downturn

Propelled by booming iPhone 3G sales, Apple on Tuesday reported strong sales and profitability for the quarter that ended in September.

Apple posted revenue of US$7.9 billion and profit of US$1.1 billion, compared to revenue of US$6.2 billion and profit of US$904 million for the same quarter a year ago.

AT&T, which runs the network on which the iPhone runs, also posted revenue and income increases fueled by iPhone demand.

Apple officials said they weren't economists and couldn't predict how the global financial crisis would affect their sales in the next quarter and beyond. Nevertheless, they remain optimistic about the company's ability to weather the storm, thanks to the popularity of its latest iPhones, Macbook and iPod models. they said.

"We have the strongest product lineup in Apple's history, the most talented employees and the best customers. And $25 billion in the bank," said Steve Jobs, Apple's CEO. "We may get buffeted around by the waves a little bit, but we will be fine and stronger than ever when the waters calm in the future."

Indeed, Jobs hinted at Apple being able to make acquisitions or increase R&D investments during the downturn, because of its strong cash position. "This downturn may also present some extraordinary opportunities for companies that have the cash to take advantage of them, like Apple does," he said.

The big news of the quarter was Apple's iPhone sales, which topped the sales of Research In Motion's BlackBerry for the first time in the mobile phone's 15-month history. Apple sold 6.9 million iPhones, compared to 6.1 million BlackBerries sold over the same three-month period. Many of Apple's sales were international, with the iPhone available in 51 countries.

The iPhone accounted for US$4.6 billion in revenue for Apple, or 39 percent of the company's business last quarter, Jobs said.

The iPhone is now the third-best-selling mobile phone in the world in terms of revenue, behind those from Nokia and Samsung, Jobs said. He called sales of Apple's latest iPhone 3G "truly stunning," and he lauded the fact that Apple has sold 200 million iPhone applications from its AppStore in just 102 days.

Also hot were Apple's Macintosh computers, which hit an all-time high of 2.6 million units sold during the quarter, a 21 percent growth over the same period last year. Mac sales would have been even higher were it not for a sharp decline in sales to K-12 schools during the quarter, especially in California, Apple officials said. They attributed the slowdown in Mac sales to schools to the fact that state and local government budgets are being hit hard by the economic downturn.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags AppleiPhone

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Carolyn Duffy Marsan

Network World
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?