Apple's 2011 Q2 financial report nearly ties Q1 all-time record
by Bill Fox, MacsOnly.com April 25, 2011 [Updated]
Last week Apple announced that its second fiscal quarter (Q2) of 2011 had the second highest quarterly revenue for any financial quarter in its history. Its 2011 Q2 was also the highest Q2 on record. Earnings per share (EPS) of $6.40 exceeded the $5.37 consensus estimate of Wall Street analysts by over 19%. Revenue was $24.7 billion with a net quarterly profit of $6 billion, both of which are huge increases over the 2010 Q2 results of nearly 83 percent and over 95 percent respectively, the highest year over year quarterly improvement on record. The gross margin was a terrific over 41 percent, down slightly from the nearly 42 percent of Q2 last year.
Apple's cash on hand and short- and long-term investments increased nearly 10 percent to $65.8 billion from nearly $60 billion in Q1 of 2011. Also, according to Apple's 10-Q form for Q2, Apple added 500 new employees bringing it up to 30,200.
Steve Jobs summed up the company's performance as "We're firing on all cylinders and we will continue to innovate on all fronts throughout the remainder of the year."
Mac sales were up 28 percent to nearly 3.8 million, iPhone sales were up 113 percent to over 18.6 million and iPod sales were down 17 percent to over 9 million, all as compared with the second quarter of 2010. Apple's iPad sales reached nearly 4.7 million, down 36 percent from Q1 of 2011. Apple is still selling all the iPhone 4's that they can make and is expected to release the long-promised white version later this month.
With new MacBook Pros released this quarter and last quarter's new MacBook Airs, this quarter the portable unit Mac sales growth of 53 percent greatly exceeded the desktop unit sales change of a 12 percent decrease, continuing the sales performance of portables leading desktops. Portables out sold desktops by nearly 3 to 1.
The large decline in iPad sales was attributed by Apple's executives to the inability of Apple's parts suppliers to meet demand, claiming that Apple sold all it could make in the quarter. It was also likely due to slowing original iPad sales in anticipation of the new iPad 2 which debuted in early March and began shipping in mid March as well as the switching of production from the original iPad to the iPad 2.
All of Apple's operating segments (Americas, Europe, Japan, Asia Pacific and retail stores) scored increased unit sales and revenue over the same quarter in 2010, averaging 28 percent growth in unit sales and 83 percent growth in revenue. The revenue of Apple's Asia-Pacific division had a second quarter of phenomenal year over year growth of 151 percent. Apple's retail stores also had increases in unit sales and revenue of 32 percent and 90 percent respectively. Apple opened no new stores during Q2 but has 40 on tap for this year including another in China.
Check out the interesting stuff discussed during Apple's call with analysts that is posted here.
Apple forecast a small dip for next quarter's revenue at about $23 billion, which would still be the third highest on record, with a lower earnings per share of about $5.05. On the latter, the current consensus financial analyst estimate is higher at $5.59. Apple's forecasts have been quite conservative in the past.
[Updated 2011 Q2 cash on hand plus short- and long-term investments as per the 10-Q form.]
PS--I finally produced the quarterly earnings chart (above) using Apple Numbers '09 (v2.0.5) rather than Microsoft Excel 2011 (SP1) so I wouldn't have to do as much post processing in Photoshop Elements 9 which has font rendering and clipboard problems. Unfortunately, I ran into a bug in Numbers--the chart title and legend wouldn't copy to the clipboard. I had to uncheck those options and re-enter them in text boxes to get them included in the clipboard copy. The clipboard problems actually could be with Mac OS X 10.6.7.
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