Apple Reports Record $3.38 Billion Profit for Q1 2010 on Highest Revenue in History

Apple today announced financial results for the first fiscal quarter of 2010, corresponding to the fourth calendar quarter of 2009. For the quarter, Apple posted revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, compared to revenue of $11.88 billion and net quarterly profit of $2.26 billion, or $2.50 per diluted share, in the year-ago quarter. Gross margin was 40.9 percent, compared to 37.9 percent in the year-ago quarter, and international sales accounted for 58 percent of the quarter's revenue. The numbers represent the most profitable quarter in Apple's history on record-breaking revenue, and include the highest Mac and iPhone quarterly sales in company history.

The company has adopted revised accounting standards that no longer require Apple to parcel out income from iPhone and Apple TV sales over a 24-month period from the date of sale, and the company has retrospectively revised financial results for previous quarters to reflect this change. Apple previously released two sets of financial numbers, one official set utilizing this subscription-based accounting for the iPhone and Apple TV and a second "non-GAAP" set that more accurately portrayed the company's performance.

Apple shipped 3.36 million Macintosh computers during the quarter, a unit increase of 33 percent over the year-ago quarter. The company also sold 21 million iPods during the quarter, representing 8 percent unit decline over the year-ago quarter. Quarterly iPhone unit sales reached 8.7 million, up 100 percent from the year-ago quarter.

"If you annualize our quarterly revenue, it's surprising that Apple is now a $50+ billion company," said Steve Jobs, Apple's CEO. "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."

Apple's guidance for the second quarter of fiscal 2010 includes expected revenue of $11.0 billion to $11.4 billion and earnings per diluted share of $2.06 to $2.18.

Apple will provide live streaming of its Q1 2010 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference Call Highlights:
- Apple opened 10 new stores in this quarter, bring the worldwide store total to 283
- A record 50.9 million people visited Apple stores this quarter
- New FASB rules requires Apple to estimate software upgrade revenue for Apple TVs and iPhones over the upcoming 24 months and recognize this revenue at the time of sale rather than later
- Tim Cook stated during the Q&A section, "We believe we are shipping the best product we've ever shipped and are very excited about the product pipeline."
- In response to a question on the future guidance provided during the call, Cook stated "You may be alluding to the event on Wednesday," and "We don't have anything to share on that today. Stay tuned."
- When asked about how the iPhone is performing in China, Cook stated that the company typically does not disclose sales by country, but Apple is focused on the long-term for that market and believe it has "significant potential."
- Regarding iPhone inventory during the quarter, Apple could have sold "a lot more" but chose to manage inventory tightly instead.
- In answering a question about the complaints about the App Store approval process, Cook responded that it's important to keep this in perspective given that there are over 100,000 apps in the store and over 90% of these have been approved within 14 days. The focus during the approval process is ensuring consumer privacy is respected and most rejections are because of bugs.
- When queried about possible new product categories for the future, Cook declined to comment in light of the upcoming event on Wednesday.
- Going back to the topic of the iPhone in China and other emerging markets, Cook commented that the company is very focused on these markets and they recognize the differences in customer populations and learn from them.
- Total capital expenditure is expected to be $1.9 billion (no change from previous guidance), with about $400 million going to retail and $1.5 billion in other areas - these expenditures will be focused on facilities, infrastructure, and manufacturing.
- Regarding the iPhone in business, Cook stated that 70% of the Fortune 100 are piloting or deploying the iPhone and the company "feels great" about this.
- When asked about the acquisitions of Lala and Quattro and Apple's future direction, Peter Oppenheimer said the company had acquired Quattro to "offer developers a seamless way to make more money" in their apps, particularly free apps.
- Apple would not comment further to questions on expectations on mobile advertising and its impact on future revenue.
- Education was up 16% year-over-year and the company expects to continue to do well in this market with continued focus.

The conference call concluded just after 3:00 pm Pacific time. A replay of the conference call will be available for 2 weeks at phone numbers +1-888-203-1112 and +1-719-457-0820, using confirmation number 4035751, starting at approximately 5:00 pm Pacific time today. It will also be available in iTunes as a podcast shortly.

Popular Stories

iphone 14 pro max vs 13 max 2

Camera Comparison: iPhone 14 Pro Max vs. iPhone 13 Pro Max

Thursday September 29, 2022 7:44 am PDT by
The iPhone 14 Pro and Pro Max introduce some major improvements in camera technology, adding a 48-megapixel lens and low-light improvements across all lenses with the new Photonic Engine. We've spent the last week working on an in-depth comparison that pits the new iPhone 14 Pro Max against the prior-generation iPhone 13 Pro Max to see just how much better the iPhone 14 Pro Max can be. Subscrib ...
maxresdefault

Apple Responds to Video Testing Crash Detection Feature With Junkyard Vehicles

Friday September 30, 2022 9:11 am PDT by
The Wall Street Journal's Joanna Stern recently traveled to Michigan to test Apple's new crash detection feature on the iPhone 14 and Apple Watch Ultra. In response, Apple provided some additional information about how the feature works. Stern recruited Michael Barabe to crash his demolition derby car with a heavy-duty steel frame into two unoccupied vehicles parked in a junkyard — a 2003...
iphone 14 iphone 14 plus in hand feature

iPhone 14 Is Secretly Hiding a Beloved Mac Feature

Friday September 30, 2022 3:24 am PDT by
The iPhone 14 and iPhone 14 Pro models bring over a longstanding Mac feature, but the setting to enable it is off by default. The feature, which is actually a new accessibility option, allows the iPhone to play a startup chime like the Mac. When enabled, the sound comes alongside a new shutdown chime. The Mac has featured a startup chime since 1987's Macintosh II, and the iconic "bong"...
adaptive transparency airpods pro

iOS 16.1 Beta Brings Adaptive Transparency to Original AirPods Pro

Thursday September 29, 2022 1:08 pm PDT by
The third beta of iOS 16.1 that was released earlier this week expands the Adaptive Transparency feature introduced with the second-generation AirPods Pro to the original AirPods Pro. As noted on Reddit, first-generation AirPods Pro owners who also have the AirPods beta software will now see an "Adaptive Transparency" toggle in the AirPods section of the Settings app. The 5A304A beta...
iOS 16 Wallpaper Spectrum Feature

Five Wallpaper Apps to Check Out for iOS 16's New Lock Screen Depth Effect

Thursday September 29, 2022 9:08 am PDT by
One of the biggest new features in iOS 16 is a completely redesigned iPhone Lock Screen. The new Lock Screen is entirely customizable, letting you change the colors and fonts, add widgets and new wallpapers, and more to make your iPhone uniquely yours. Of course, even before iOS 16, you could customize your Lock Screen with a wallpaper of your choice. iOS 16 takes the Lock Screen wallpaper...
tony blevins car

Apple Procurement VP Departs Company After Vulgar TikTok Comment

Thursday September 29, 2022 12:38 pm PDT by
Tony Blevins, Apple's vice president of procurement, is set to depart the company after he made a crude comment about his profession in a recent TikTok video, reports Bloomberg. Blevins was in a video by TikTok creator Daniel Mac, who was doing a series on the jobs of people he spotted with expensive cars. After seeing Blevins in an expensive Mercedes-Benz SLR McLaren, Mac asked Blevins what ...
tim cook malala

Tim Cook: Not Too Long From Now, You'll Wonder How You Led Your Life Without AR

Thursday September 29, 2022 7:26 am PDT by
Speaking at Università Degli Studi di Napoli Federico II in Naples, Italy, Apple CEO Tim Cook said that not too long from today, people will wonder how they led a life without augmented reality, stressing the "profound" impact it will have on the not so distant future. At the university, Cook was awarded an Honorary Degree in Innovation and International Management and also sat down for a...
Hero0005

Best Apple Deals of the Week: M2 MacBook Air Hits New All-Time Low Price at $1,049, Plus Sales on AirPods Pro and More

Friday September 30, 2022 9:05 am PDT by
This week's best Apple deals focus on the AirPods Pro, AirPods Pro 2, and M2 MacBook Air, including numerous all-time low prices on these devices. You'll also find up to 50 percent off discounts on Anker and Eufy accessories on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us...
zuckerberg metaverse

Apple CEO Tim Cook: 'I'm Not Really Sure the Average Person Can Tell You What the Metaverse Is'

Friday September 30, 2022 12:51 pm PDT by
Apple CEO Tim Cook has been touring Europe this week, sitting down for interviews with various media publications. Augmented reality has been a running theme in Cook's discussions, and it is a topic he brought up again in an interview with Dutch publication Bright, which is part of RTL News. "I think AR is a profound technology that will affect everything," Cook said, echoing comments from...
ipad pro m1 feature

Gurman: Apple Event This October Remains Unlikely, No Touch ID for iPhone 15

Sunday October 2, 2022 6:41 am PDT by
Apple is developing new iPad Pro, Mac, and Apple TV models, and at least some of these products will be released in October, according to Bloomberg's Mark Gurman. However, Gurman continues to believe that Apple is unlikely to hold an event this month. In the latest edition of his Power On newsletter, Gurman said "the big iPhone 14 unveiling last month was probably it for Apple in 2022 in...