Apple released on Tuesday that even amidst iPhone 4 woes and bruises left by “Antennagate”, there weren't any worms in their financial statements, posting second-quarter net income profits up 78% to $3.25 billion.
Figures from April-to-June soared up 61% year-over-year to $15.7 billion, producing Apple’s highest quarterly profit ever recorded. Their sensational figures are attributed to booming sales of the recently released iPad, which sold roughly 3.3 million units, leaving empty shelves nationwide in its wake. Fears by investors that the iPad would attract customers away from Macintosh computers were all in vain: Mac sales jumped up 33% to 3.5 million, aided along by record distributions to the educational sector.
It wasn’t all sunny orchards and cider mills for Apple, however. Sales of the trend-setting iPod were down at 9.4 million units, an 8% drop from the previous year. Apple also mentioned its intentions to set aside $175 million from the October-through-December quarter to account for the free cases it intends on shipping all of its iPhone 4 owners.
Speaking of which, the iPhone 4 was only available the last three days of the quarter, still managing to sell 1.7 million units, but only representing a fraction of its full sales potential. It will be interesting to witness its recorded success once third-quarter reports are released.
Apple isn’t the only pig rolling in the digital slop. AT&T, holding hands and skipping along with Apple’s success, has also witnessed strong numbers, reporting in their quarterly released earlier today that this is the second consecutive sales semester with year-over-year increases in revenue, up 0.6% from 2009.
Standing testament and as strong as any indication as Apple could have hoped for in regards to their iPhone 4 and its predicted success, AT&T’s financial results stated the following:
“Preorder sales of iPhone 4 were 10 times higher than the first day of preordering for iPhone 3GS a year earlier. For the full second quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone activations ever. Approximately 27% of those activations were for customers who were new to AT&T.”
The ebb and flow of Apple to AT&T is mind-blowing. It’s like playing soft-pitch baseball with Barry Bonds: one tosses it up, the other knocks it out of the park. With the holiday season fast approaching and an eager market ready to eat up a slice of their pie, it would be in Apple’s best interest to stock up the supply to finally meet its demand. If these trends continue, Q3 and Q4 profits could shatter records, and see Apple and AT&T cited by BALCO in front of a grand jury.