Apple Earnings: Record Profits, Revenues, But Underwhelming iPad Sales

Company reports $5.99 billion net profit and $24.67 billion in revenues, but 4.69 million tablets sold falls well below expectations

Apple reported its fiscal second quarter earnings on Wednesday, with revenues of $24.67 billion and profits of $5.99 billion — both records and exceeding analysts expecations — despite lower-than-expected sales of its iPad tablet.

Overall, revenues were up 83 percent during the quarter, and net profit up 95 percent.

"We’re firing on all cylinders,” Apple chief Steve Jobs said in a statement accompanying the results.

Apple sold 3.76 million Macs during the quarter, a 28 percent increase versus the same quarter last year, and 18.65 million iPhones — double what it did the year before.

Sales of iPods — 9.02 million — fell 17 percent for the quarter, which was expected.

What wasn't entirely expected were the less-than-stellar iPad sales — 4.69 million for the first three months of 2011, well short of the 6 million analysts were predicting.

Apple chalked that up to the well-publicized supply channel problems, as well as lower demand for first-generation iPads ahead of the iPad 2 release.

Nonetheless, Apple CFO Peter Oppenheimer said the company is "thrilled with the momentum" surrounding the tablet.

"We sold every iPad 2 we could make during the quarter," Oppenheimer said during a conference call with investors. "We are working hard to get iPad 2 into the hands of everyone who wants them as fast as we can."

Acting chief Tim Cook added: "I'm very confident that we can produce a very large number of iPads for the quarter."

Here's the full Apple earnings release.

CUPERTINO, Calif. — (BUSINESS WIRE) — Apple® today announced financial results for its fiscal 2011 second quarter ended March 26, 2011. The Company posted record second quarter revenue of $24.67 billion and record second quarter net profit of $5.99 billion, or $6.40 per diluted share. These results compare to revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, in the year-ago quarter. Gross margin was 41.4 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.

Apple sold 3.76 million Macs during the quarter, a 28 percent unit increase over the year-ago quarter. The Company sold 18.65 million iPhones in the quarter, representing 113 percent unit growth over the year-ago quarter. Apple sold 9.02 million iPods during the quarter, representing a 17 percent unit decline from the year-ago quarter. The Company also sold 4.69 million iPads during the quarter.

“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Steve Jobs, Apple’s CEO. “We will continue to innovate on all fronts throughout the remainder of the year.”

“We are extremely pleased with our record March quarter revenue and earnings and cash flow from operations of over $6.2 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $5.03.”

Apple will provide live streaming of its Q2 2011 financial results conference call beginning at 2:00 p.m. PDT on April 20, 2011 at This webcast will also be available for replay for approximately two weeks thereafter.