Among the royal heads of gadgets kingdom is certainly Apple, who surpassed quarterly earnings expectations again with the help of strong sales of its iPhone.
Apple’s net profit increased by 70% in Q4, to 4.31 billion dollars from 2.53 billion dollars in the same period, last year. Revenue climbed 67% to 20.3 billion dollars. Both indicators significantly exceeded analysts’ estimates.
On the entire fiscal year October 2009 – September 2010, the company’s net profit also rose by 70%, from 8.2 billion dollars to 14 billion dollars, while sales increased by 52%, from 42.9 billion dollars to 65.2 billion dollars.
iPad sales, however, and margins disappointed and Apple shares sank with 6%.
Jane Snorek, analyst at First American Funds said for Reuters that “iPads were low, but I also think they had a lot of production problems getting that off the ground. So I don’t think that really is a good demand indicator for iPad.”
“IPad demand is red hot and they can sell as much as they can make.”
Ashok Kumar, analyst at Rodman & Renshaw said “The fact that they were able to get 4 million iPads out in what is a very difficult supply situation is a testament to the supply chain of Apple. Looking out to the December quarter they should be able to take that out to 6 million units.”
Indeed, if Apple manages to resolve their production capacity, they could raise the profit once more.