Apple reports sale of 35 million iPhones in Q2 2012 (USA)
Apple announced financial results for its fiscal 2012 second quarter ended March 31, 2012. The Company posted quarterly revenue of $39.2 billion and quarterly net profit of $11.6 billion, or $12.30 per diluted share. These results compare to revenue of $24.7 billion and net profit of $6.0 billion, or $6.40 per diluted share, in the year-ago quarter. Gross margin was 47.4 percent compared to 41.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.
The Company sold 35.1 million iPhones in the quarter, representing 88 percent unit growth over the year-ago quarter. Apple sold 11.8 million iPads during the quarter, a 151 percent unit increase over the year-ago quarter. The Company sold 4 million Macs during the quarter, a 7 percent unit increase over the year-ago quarter. Apple sold 7.7 million iPods, a 15 percent unit decline from the year-ago quarter.
Tim Cook, Apple’s CEO, said that they are thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter. He added that the new iPad is off to a great start, and across the year users are going to see a lot more of the kind of innovation that only Apple can deliver.
Peter Oppenheimer, Apple’s CFO, said that their record March quarter results drove $14 billion in cash flow from operations. Looking ahead to the third fiscal quarter, they expect revenue of about $34 billion and diluted earnings per share of about $8.68.
Apple said to be worth more than Poland at a value of US$ 500 billion (USA)
With iPhone maker Apple crossing the US$ 500 billion mark, the industry has been abuzz with news stating that the U.S. giant is now worth more than the entire country of Poland. According to reports, Tim Cook, CEO, Apple said that Apple is the sixth company in history to reach a value of US$ 500 billion.
The comparison arises as the share market value of Apple reached US$ 506 billion while the GDP of Poland was reported to be US$ 497 billion. Reports reveal that the value is expected to be more than Belgium, Sweden, Saudi Arabia and Taiwan as well.
Cook had told its shareholders at the annual meeting that the company has more money than it needs, and the board and management are thinking very deeply about ways to use the cash.
Industry analysts believe that such a comparison is unfair as the valuation of a company takes into account the combined profits and future cash flows. On the other hand, the GDP of a country refers to the market value of all officially recognized final goods and services produced within a country in a year. However, the fact that such a comparison could be thought of highlights the success of Apple and its profitability. Analysts believe that while Apple is a very strong company, it is yet to be seen as to how long it can continue the success run.
Further, the release of the new iPad which will go on sale by March 16 is expected to enhance the earnings of the company.
Apple passes Exxon as the most valuable firm (USA)
US giant Apple Inc has reportedly emerged as the most valuable US company surpassing Exxon once again. According to reports, the market capitalization of Apple was at $ 418.5 on Wednesday, while Exxon had a mobile capitalization of $ 413 billion. However, Exxon regained its position at the end of the day.
Apple recently reported its first quarter financial results, where in the company posted record quarterly revenue of $46.33 billion and record quarterly net profit of $13.06 billion, against a revenue of $26.74 billion and net quarterly profit of $6 billion, for the same quarter in the past year.
As per the company report, Tim Cook, CEO, Apple has said that they are thrilled with their outstanding results and record-breaking sales of iPhones, iPads and Macs. He added that Apple’s momentum is incredibly strong, and they have some amazing new products in the pipeline.
Apple hands out $60 million to senior vice-presidents (USA)
California based iPhone manufacturer Apple Inc., has reportedly given its senior vice-presidents $60 million restricted stock-grants in an attempt to hold on to its management team following the death of the former CEO, Steve Jobs. According to reports, software executive Scott Forstall, hardware manager Bob Mansfield, CFO Peter Oppenheimer, marketing chief Phil Schiller, General Counsel Bruce Sewell and operations manager Jeff Williams each received 150,000 in restricted stock units, maturing between 2013 and 2016.
As per sources, the company has said that the executive team is incredibly talented and they are all dedicated to Apple’s continued success and the stock grants are meant to reward them down the road for their hard work in helping to keep Apple the most innovative company in the world. Reports suggest that the $60 million amount is based on the current stock price while the final value will depend on the price when the grants are exercised.
According to reports, Tim Cook, CEO, Apple received 1 million restricted stock units when he was appointed as the CEO in August. Further, of the stock currently worth over $400 million, half the grant matures in 2016 while the remaining stock matures in 2021, subject to his continued employment with the company.
