iLounge

By Charles Starrett

Senior Editor, iLounge
Published: Tuesday, January 18, 2011
News Category: Apple

Reporting its first quarter financial results today, Apple said it sold 19.45 million iPods during the holiday quarter — a seven percent decrease compared to the same quarter last year. Despite the drop in unit sales, revenue from iPod sales actually increased one percent year-over-year, to $3.425 billion. Apple also sold 16.24 million iPhones in the quarter, an 86 percent increase year-over-year, and up from 14.1 million units in the prior quarter. Apple also sold 7.33 million iPads during the quarter, up from 4.19 million units in the fourth quarter of 2010. The units sales of iPhones, iPods, and iPads bring the cumulative unit sales for the three device categories to 89.9 million, 298 million, and 14.79 million, respectively. The company posted revenue of $26.74 billion and net quarterly profit of $6 billion, or $6.43 per diluted share, representing all-time revenue and profit highs, compared with revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share in Q1 2010. Sales of Other Music Related Products + Services were up 23% over the year-ago quarter, and up 15% from Q4 2010, to $1.431 billion total. That category includes iTunes Store sales, iPod services, and revenues from Apple and third-party iPod accessories. International sales accounted for 62 percent of the quarter’s revenue, up from 58 percent in the year-ago quarter.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Steve Jobs, Apple’s CEO. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”