- Gentlemen, start your drones: Judge’s ruling opens door for commercial use
- Soldier who hid, bragged about not saluting flag to be punished — in secret
- ‘Maverick’ of the seas: ‘Top Gun’ school for U.S. ship officers to launch
- Putin declares Sochi Paralympics open amid Ukrainian protest
- ‘In Jesus name, we pray’ sparks ire at Ohio council meeting
- Navy’s first laser weapon ready for prime time; drone killer to deploy this summer
- Billionaire backer: Rick Santorum ‘needs to be heard’ in 2016
- Obamacare fallout: 49 percent pessimistic; 45 percent ‘scared’
- DHS accused of holding U.S. citizen at airport, using emails to pry into her sex life
- Seattle socialist: Minimum-wage discussion skewed by ‘right-wing’ GAO analysis
Apple trumps expectations, sells 35M iPhones in 2Q
NEW YORK (AP) - Apple Inc., the world’s most valuable company, trumped skeptics once again by reporting blowout iPhone sales.
Apple says it sold 35 million iPhones in the January-to-March quarter, almost twice as many as it sold a year ago and above analyst expectations.
Apple’s stock was down 2 percent at the close of regular trading, as investors believed phone companies had reined in iPhone sales. In extended trading, the stock rallied $40.02, or 7.1 percent, to $600.30.
Net income in the company’s fiscal second quarter was $11.6 billion, or $12.30 per share. That was nearly double the net income of $6 billion, or $6.40 per share, a year ago.
Analysts polled by FactSet were expecting earnings of $10.07 per share for the latest quarter, Apple’s fiscal second.
Revenue was $39.2 billion, up 59 percent from a year ago. Analysts were expecting $37 billion.
IPad sales came in below analyst expectations, at 11.8 million units. But that was still two and a half times as many as it sold in the same quarter a year ago. Apple launched a new iPad model in the quarter, and supplies are still tight. White believes short supplies of the new high-resolution screen are to blame.
Mac sales were also slightly below expectations, at 4 million. That was up 7 percent from last year. Meanwhile, the overall PC market grew about 2 percent.
Windows PC makers are now hoping Windows 8 will give them a better chance at competing with Apple, both in PCs and tablets. Intel CEO Paul Otellini last week said he believes PCs and tablets will merge into one light device with a keyboard and a touch-sensitive screen.
“You can converge a toaster and a refrigerator, but those things are probably not going to be pleasing to the user,” he said.
Cook also dismissed concerns that phone companies aren’t satisfied subsidizing each new iPhone by hundreds of dollars, and are trying to curb iPhone upgrades by their subscribers. AT&T Inc.’s Tuesday morning earnings report provided signs that the company is doing just that.
“IPhone is the best smartphone on the planet to entice the customer who is currently using a traditional mobile phone to upgrade to a smartphone.” Cook said. “There’s a win-win-win there.”
Analyst Abhey Lamba at Mizuho Securities agreed, saying he doesn’t expect phone companies to change their subsidies any time soon.
TWT Video Picks
By Tammy Bruce
- Bill Clinton cashes in on struggling nonprofit hospital
- Putin has transformed Russian army into a lean, mean fighting machine
- BRUCE: Obama's bizarre immigration rules
- Kim Jong-un calls for execution of 33 Christians
- Bill Clinton poses for photo with Bunny Ranch prostitutes
- IRS to turn over Lerner emails in tea party targeting probe
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Unemployment insurance vote could happen next week
- PRUDEN: Likening Putin to Hitler on Ukraine shows Hillary's shaky grasp of history
- DELAY: A revolution for the Constitution
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again