Record Profit at Apple
Apple's bottom line has been buoyed by the miniature music players ever since the first iPod was released in 2001. The company's prospects were similarly enhanced by last week's release of the iPod smartphone. (See iPhone Sticker Shock 'n' Awe.)
“We are incredibly pleased to report record quarterly revenue of over $7 billion and record earnings of $1 billion,” said CEO Steve Jobs, in a statement. “We’ve just kicked off what is going to be a very strong new product year for Apple by launching Apple TV and the revolutionary iPhone.”
In an indication of the expectations set by the company's stylish products and clever marketing, Apple shares actually dropped by more than two percent after the earnings report was released. The company forecast revenue for the second quarter of $4.8 billion to $4.9 billion, slightly below some estimates.
While many raved about the new iPhone, with its innovative form factor, others in the industry say the high price tag of $500 to $600 will keep it from being a hot seller on the order of the iPod. (See Apple Makes iPhone Call.)
— Richard Martin, Senior Editor, Unstrung