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Apple iPhone Explodes, iPads Sizzle in Q2

Apple Inc. (Nasdaq: AAPL) posted another record-breaking quarter Wednesday as iPhone sales soared to 18.65 million, representing 113 percent growth over the previous year. The company sold 4.69 million iPads during the quarter ended March, well below analyst estimates. (See Apple Reports Q2.)

In the second quarter, Apple launched the iPhone 4 on Verizon Wireless and introduced the iPad 2. The iPhone is now on 186 carriers in 90 countries. (See Verizon Finally Gets the iPhone 4 and AT&T & Verizon Fight for iPad 2 Dominance.)

Apple posted a second-quarter profit of US$5.99 billion on revenues of $24.67 billion. Half of its revenues came from the iPhone.

Apple's slower-than-expected iPad sales weren't a result of the earthquake in Japan as some assumed. COO Tim Cook said on its earnings call that although it sources literally hundreds of products from Japan, there was no supply or cost impact.

Instead, the issue on iPad sales was that Apple is still heavily backlogged as demand outstrips supply as it expands the device to more countries and carriers.

"We sold every iPad 2 that we could make," he said on the call. He added that Apple will produce a very large number of the tablets for the next quarter, but he's still uncertain if it will meet consumer demand.

Tablets were not a huge seller for AT&T Inc. (NYSE: T), which announced its first-quarter earnings earlier on Wednesday, either. The carrier sold 322,000 tablets, down from the 442,000 it sold in the fourth quarter, but that's also the quarter in which it began selling the 3G iPad. (See AT&T Looks From iPhone to LTE to Increase Subs and AT&T's iPhone Growth Continues.)

— Sarah Reedy, Senior Reporter, Light Reading Mobile

DCITDave 12/5/2012 | 5:07:01 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

Is anyone really worried that Apple missed Wall Street's expectations with its iPad sales?They're selling something like 52,000 iPads a day. That still sounds like a lot. 

paolo.franzoi 12/5/2012 | 5:06:50 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

mendyk,



You sound like a broken record!


 


seven


 


PS - HUMOR ALERT!


 


 

shygye75 12/5/2012 | 5:06:50 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

By the way -- can we declare a moratorium if not jihad on the use of the term "record-breaking" to describe revenue reports? For any reasonably healthy business, any quarter should be record-breaking in terms of revenue because that's an indicator of growth. So if a quarter isn't record-breaking, the business in question is sailing up a nasty creek.

shygye75 12/5/2012 | 5:06:50 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

I'd be more worried about having an exploding iPhone in my pocket, or a sizzling iPad on my lap (per the story's headline).


But seriously, folk ... Apple understands that the key to growth (that is, the kind of growth that drives your market cap to insane and unrealistic levels) is to continually launch new stuff. At some point, this strategy will max out, and then we'll be able to write and read stories about Apple needing to get its groove back or something.

DCITDave 12/5/2012 | 5:06:50 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

Point taken. Our numbers coverage could afford to be a bit more sober.

shygye75 12/5/2012 | 5:06:49 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

Actually, seven, I'm on 8-track. Player has been stuck on Program 2 for about 25 years, and no one's around to repair it.

DCITDave 12/5/2012 | 5:06:47 PM
re: Apple iPhone Explodes, iPads Sizzle in Q2

And he just switched back from decaf. 


Oh boy.


ph

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