Apple’s first quarter of 2010 was another blockbuster, and Steve Jobs is talking about a major new product this week that he’s “really excited about.”
In financial results reported Monday, Apple says it earned “all-time highest revenues and profits.” The company made revenues of $15.68 billion and profits of $3.38 billion on sales of 3.36 million Macs and 8.7 million iPhones.
“If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company,” said Steve Jobs, Apple’s CEO, in a statement. “The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about.”
Everything except sales of iPods (which are down 8%) is in record territory — iPhone sales are up 100% and Macs up 33%.
Here are the highlights:
* 3.36 million Macs sold (33% unit increase over year-ago quarter).
* 8.7 million iPhones sold (100% unit growth).
* 21 million iPods sold (8% unit decline).
* $15.68 billion revenue ($11.88 billion in the year-ago quarter).
* $3.38 billion net quarterly profit, or $3.67 per diluted share. ($2.26 billion, or $2.50 per diluted share, last year).
* 40.9% gross margin was (37.9 percent in the year-ago quarter).
* International sales accounted for 58 percent of revenue.
Apple’s a money machine. The 41% gross margin is unbelievable, especially in a recession. Competitors atre lucky to make 5% margins.
It’s also worth noting that a big bump in revenue came from Apple’s adoption of new accounting practices. Revenue from sales of iPhones and Apple TVs are now recognized immediately, rather than being spread over two years. Apple used subscription accounting for iPhones and Apple TVs so that it could provide free software upgrades without running afoul of accounting rules.
Leander Kahney is the editor and publisher of Cult of Mac.
Leander is a longtime technology reporter and the author of six acclaimed books about Apple, including two New York Times bestsellers: Jony Ive: The Genius Behind Apple’s Greatest Products and Inside Steve’s Brain, a biography of Steve Jobs.
He’s also written a top-selling biography of Apple CEO Tim Cook and authored Cult of Mac and Cult of iPod, which both won prestigious design awards. Most recently, he was co-author of Cult of Mac, 2nd Edition.
Leander has been reporting about Apple and technology for nearly 30 years.
Before founding Cult of Mac as an independent publication, Leander was news editor at Wired.com, where he was responsible for the day-to-day running of the Wired.com website. He headed up a team of six section editors, a dozen reporters and a large pool of freelancers. Together the team produced a daily digest of stories about the impact of science and technology, and won several awards, including several Webby Awards, 2X Knight-Batten Awards for Innovation in Journalism and the 2010 MIN (Magazine Industry Newsletter) award for best blog, among others.
Before being promoted to news editor, Leander was Wired.com’s senior reporter, primarily covering Apple. During that time, Leander published a ton of scoops, including the first in-depth report about the development of the iPod. Leander attended almost every keynote speech and special product launch presented by Steve Jobs, including the historic launches of the iPhone and iPad. He also reported from almost every Macworld Expo in the late ’90s and early ‘2000s, including, sadly, the last shows in Boston, San Francisco and Tokyo. His reporting for Wired.com formed the basis of the first Cult of Mac book, and subsequently this website.
Before joining Wired, Leander was a senior reporter at the legendary MacWeek, the storied and long-running weekly that documented Apple and its community in the 1980s and ’90s.
Leander has written for Wired magazine (including the Issue 16.04 cover story about Steve Jobs’ leadership at Apple, entitled Evil/Genius), Scientific American, The Guardian, The Observer, The San Francisco Chronicle and many other publications.
Leander has a postgrad diploma in artificial intelligence from the University of Aberdeen, and a BSc (Hons) in experimental psychology from the University of Sussex.
He has a diploma in journalism from the UK’s National Council for the Training of Journalists.
Leander lives in San Francisco, California, and is married with four children. He’s an avid biker and has ridden in many long-distance bike events, including California’s legendary Death Ride.
You can find out more about Leander on LinkedIn and Facebook. You can follow him on X at @lkahney or Instagram.
