Apple is proving that great design and smart software pays off, with a massive 47% jump in profits. The result is a sobering reminder to brands like Sony, Nokia and Dell who are wallowing in losses and poor results.
Apple are also tipping a good last quarter running into the peak Xmas New Year buying period.
The company also sounded an upbeat note for the holiday season, despite new competition in the smart-phone and PC markets. Shares of Apple surged more than 6% after the results were released, eclipsing $200.
Apple said that they sold 7.4 million iPhone’s in the quarter ended Sept. 26, up 7% from a year ago and 41% more than the previous quarter. The sales are a blow to brands like Research In Motion and Nokia who have been feeling the effects of Apple’s marketing blowtorch.
“We feel very, very good about suiting up and competing against anyone,” Tim Cook, Apple’s operating chief, said on a conference call. “Frankly, I think that people are really just trying to catch up with the first iPhone that was announced two years ago, and we’ve long since moved beyond that.”
Apple also reported that they have sold 3.1 million Macintosh computers in the quarter, up 17% from a year earlier. However this momentum could be affected by the launch this week of the new Windows 7 and the roll out of hundreds of new PC’s and notebooks running on new Intel processors which take advantage of new developments in the Window operating system.
During the past quarter Apple released Snow Leopard, a major upgrade to its Mac operating system, and it said initial sales have been double that of the previous upgrade two years ago.
Overall, Apple reported a fiscal fourth-quarter profit of $1.67 billion, or $1.82 a share, compared with $1.14 billion, or $1.26 a share, a year earlier. Its gross profit margin rose to 36.6% from 34.7% a year ago. Revenue increased 24% to $9.87 billion from $7.9 billion a year earlier.