Apple's profits exceed Google's total revenue; iDevices propel co. to records

Michael Santo's picture

Apple earnings were the watchword of the day, as on Tuesday the company released its fiscal Q1 2012 results, for the quarter ending Dec. 31, 2011, and the numbers blitzed the estimates that Wall Street had been expecting.

Until the results, released after the market closed on Tuesday, it had been a down day for Apple, with Apple stock down $7.00 to $420.41 or 1.64 percent in Tuesday trading. Once Apple's earnings were released, the stock spiked, with its price jumping to $453.80, up $33.49 or 7.97 percent in after-hours trading, at the time of this writing.

Analysts polled by Thomson Reuters had expected sales of $38.91 billion. Instead, the company reported record revenue of $46.33 billion, up 73 percent year-over-year. In terms of net income, it was yet another record, with Apple's earnings showing a record profit, of $13.06 billion (or $13.87 per share), up 118 percent from fiscal Q1 2011.

It was a welcome change from last quarter, fiscal Q4 2011. That quarter, for the first time in 32 quarters, the Cupertino-based company failed to meet analysts' estimates.

Peter Oppenheimer, Apple’s CFO said, "We are very happy to have generated over $17.5 billion in cash flow from operations during the December quarter. Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50."

Apple CEO Tim Cook added, "We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs. Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline."

Product-wise, it was an amazing quarter. Apple sold 37.04 million iPhones in the quarter, with unit volume up 128 percent year-over-year, as the release of the iPhone 4S boosted numbers. In terms of its tablet, the company sold 15.43 million iPads in fiscal Q1 2012, which was a 111 percent unit increase over fiscal Q1 2011. It also sold 5.2 million Macs during the quarter, a 26 percent unit increase year-over-year.

The iPod line continued its decline. iPods unit sales dropped 21 percent year-over-year, to 15.4 million units sold. That, however, is a continuing decline in sales. More users are moving away from stand-alone MP3 and music players toward devices --- such as the iPhone --- that have that capability and still more. Apple has long anticipated the declines to continue.

International sales accounted for 58 percent of the quarter's revenue.

To show how amazing the story is, compare Apple's earnings to Googles. Apple's profits ($13 billion) exceeded Google's entire revenue stream ($10.6 billion).

Image Source: Wikimedia Commons

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