Apple Rakes in $11.6 Billion in Second Quarter Net Income
Sells 35.1 million iPhones, 11.8 million iPads.
Tech giant Apple reported a net income of $11.6 billion during the second fiscal quarter of 2012, up from $5.9 billion during the same period in 2011. However, international sales represent 64 percent of Apple’s quarterly revenue.
Apple sold 11.8 million iPads during the second fiscal quarter of 2011, a 151 percent jump from second fiscal quarter 2011 sales. iPhone sales were up 88 percent from second quarter 2011, with 35.1 million sold.
Net sales were up to $39.18 billion in the second quarter of 2012 from $24.66 billion during the same period in 2011. Quarterly revenue for Apple is $39.2 billion; Apple CFO Peter Oppenheimer says in a press statement, “Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68.”
During a quarterly conference call, CEO Tim Cook was asked on the progress of Apple’s “store-within-a-store” model with retail partner Walmart. Cook said, “There’s no plan to be in all of Walmart’s 10,000 stores. The store is a very good partner on iPod, and an increasingly more substantial partner in the iPad space. They are also an evolving partner on the iPhone.”
When asked to elaborate on the expected decline in revenue during the call, Oppenheimer said, “For the iPhone, we expect to have a year-over-year increase and sequential decrease. We built channel inventory in the March quarter, and we are exiting March in supply and demand balance; we had a huge January. For the iPad, we expect to have a significant increase in both year-over-year and sequential sales.”
Cook responded, “I’ve always hated litigation, and I continue to hate it. We just want people to invent their own stuff. If we can get to some sort of arrangement and a fair settlement could occur, I highly prefer to settle than battle. The key thing is that it is very important that Apple doesn’t become the developer of the world. We need people to develop their own stuff.”