Apple Announces Q4 Earnings: $28.27 Billion in Revenue, Misses Wall Street Predictions



Apple today announced its earnings for the fourth fiscal quarter, with $28.27 billion in revenue and $6.62 billion in profit. In Q4, Apple sold 17.07 million iPhones, 11.12 million iPads, and 4.89 million Macs.

This is the first time in years that Apple has missed its Wall Street predictions. However, Apple surpassed its own estimates of $25 billion for the fourth fiscal quarter.

While there was year over year growth for iPhone, iPad, and Mac sales, Apple delivered slightly less revenue than Wall Street predicted. Analysts expected between $29 billion and $33.47 billion in revenue.

Apple sold 20.34 million iPhones, 9.25 million iPads, and 3.95 million Macs in its fiscal 2011 third quarter.

A decline in iPhone sales in this last quarter can be related to anticipation for the company’s next-generation smartphone, which ended up being the iPhone 4S.

Full press release:

CUPERTINO, California—October 18, 2011—Apple® today announced financial results for its fiscal 2011 fourth quarter ended September 24, 2011. The Company posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. These results compare to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, in the year-ago quarter. Gross margin was 40.3 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

The Company sold 17.07 million iPhones in the quarter, representing 21 percent unit growth over the year-ago quarter. Apple sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter. The Company sold 4.89 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 6.62 million iPods, a 27 percent unit decline from the year-ago quarter.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about $37 billion and we expect diluted earnings per share of about $9.30.

Apple’s earnings conference call is set to take place at 5 p.m. Eastern. We’ll back be back with more highlights from the call.

  • prof_peabody


    ” … Decrease in iPhone Sales.” 

    Apple announcement:  

    “… 7.07 million iPhones … representing 21 percent unit growth over the year-ago quarter.”

  • Cjh91602

    iPhone sales did not decrease… Adjust your headline Alex. 17 million units sold was 21% more than part year. The number was below analyst estimates but sales increased a lot.

  • Aj Tk427

    Is he citing a decrease from last quarter?
    I can’t tell from the article if he’s talking same time last year or from the previous quarter.

    However I agree this is larger due to the anticipation of the release of the iPhone 4S

  • imajoebob

    Gotta agree with the ctiticism of the iPhone sales statement.  That’s sloppy work.

    Look no further for some of those “inexplicable” reasons behind #OWS.  These analysts live in a world where they make up the rules, they make the predictions, then they punish others for not making their predictions come true.  

    Apple made a “promise” of what they intended to achieve this quarter, and beat it.  Not by an extravagant amount, so while they were conservative, they were still accurate.  These Wall Street pinheads decide they’re smarter than all those people who actually work AT Apple and have information they’ll never see, and jack up the expectation, which jacks up the stock price, which jacks up THEIR commission, which jacks up THEIR bonus.  And noe they’ll “punish’ the same people they encouraged to buy Apple because THEY BLEW IT, not Apple.

    And they’ll get an extra bonus for the churn on all those suckers that have to dump their Apple stock to pay the margin call.

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  • Jason

    I think that Apple finance execs should start taking over some wall street jobs.

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