April 24, 2011

Apple's earnings nearly double

NEW YORK - Apple Inc. on Wednesday reported another exceptional quarter, nearly doubling its net income and far exceeding analyst estimates on the strength of the seemingly unstoppable iPhone.

However, sales of Apple's big new product, the iPad tablet computer, came in below expectations. The second version of the tablet launched three weeks before the end of the quarter, and manufacturing constraints prevented Apple from selling more of them.

Chief Financial Officer Peter Oppenheimer said progress is being made on expanding iPad production, and the company is expanding the number of countries in which it sells the tablet.

Apple said net income for the fiscal second quarter, which ended in March, was $5.99 billion, or $6.40 per share, up 95 percent from $3.07 billion, or $3.33 per share, a year ago. Analysts expected earnings of $5.37 per share. Revenue was $24.7 billion, up 83 percent from $13.5 billion a year ago. Analysts were expecting $23.4 billion.

The results were lifted by the record sale of 18.65 million iPhones, millions more than analysts had expected. Verizon Wireless started selling the phone in the quarter, ending AT&T Inc.'s 3 1/2-year period of being the only U.S. iPhone carrier.

Earlier Wednesday, AT&T reported strong iPhone sales, as it continued to upgrade many existing subscribers even in the face of competition from Verizon.

For the current quarter, Apple said it expects revenue of $23 billion and earnings of about $5.03 per share. Both figures are below analyst expectations of $23.9 billion and $5.26 per share, respectively.

Apple shares rose $4.55, or 2.4 percent, to close at $342.41.

Associated Press Apr. 21, 2011 12:00 AM

Apple's earnings nearly double

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