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Apple Q3 Reaps Record Non-Holiday Results

Gordon Kelly


Apple Q3 Reaps Record Non-Holiday Results

Apple clearly doesn't know what a recession is, it probably can't even spell it...

Late yesterday the Cupertino giant announced its third quarter financial results and like Q2 2009 they are up, up, up, up, up, up, oh and a down...

In short the last three months proved to be Apple's best non-holiday quarter revenue and earnings in the company's history. Revenue was $8.34bn with a net profit of $1.23bn compared to $7.46bn and $1.07bn in Q3 2008. Gross margin also increased from a dizzying 34.8 per cent to 36.3 per cent (price cuts please!).

In terms of unit shipments 2.6m Macs were sold - a four per cent jump on the year ago quarter, while 5.2m iPhone and iPhone 3GS found new homes. Sneakily Apple describes this as a 626 per cent unit growth but it's an unfair comparison since the subsidised iPhone 3G didn't hit the US and UK until July which is the company's Q4.

Perhaps most interesting however are the 10.2m iPod sales which is actually down a hefty seven per cent on Q3 2008. Certainly it looks as if the MP3 player market is being cannibalised by the mobile phone sector - even if a large chunk of that could come down to the iPhone itself. I'd expect this to accelerate as a trend (at least outside of the Christmas period).

The company also dismissed reports it would make a netbook with acting CEO Tim Cook saying "Our goal is not to build the most computers, it's to build the best. Whatever price allows us to build the best computer, we'll build it there. We can't build a great $399 computer." That seems pretty final though there have been bigger U-turns in the past.

"Looking ahead to the fourth fiscal quarter of 2009, we expect revenue in the range of about $8.7 billion to $8.9 billion and we expect diluted earnings per share in the range of about $1.18 to $1.23," said Apple CFO Peter Oppenheimer.

Just unstoppable!

In related news Apple iPhone UK partner O2 has admitted its 3G network went down yesterday which is a gaff of rather epic proportions. "We're having a problem with Pay Monthly internet access, this will affect MMS too. Sorry - we're working to fix this ASAP," it admitted on its O2 Twitter account. Personally speaking I had no issues with 3G all day on my iPhone 3G but perhaps I was the only lucky one?!


Apple Q3 Press Release

O2 3G Status Tweet


July 22, 2009, 2:09 pm

On the last comment:

O2 have got to sort this out fast - I have had problems all over London with the service. I frequently get "Network Busy" messages. I was at the cricket on Friday and I understandably wanted to send gloating photos from my 2nd Gen iphone - they wouldn't go through. Fortunately I also had my E71 (Voda), which worked fine.

I'll have to consider jailbreaking the handset and choosing a better network soon if they don't do some fast upgrade work. As it is I've stopped carrying my iphone, which is annoying as it's a nice handset to use!


July 22, 2009, 2:37 pm

@ purephase - I know you shouldn't have to, but have you reported the problems to O2? Yes they will have a degree of network monitoring but complaining is the only way you'll get your voice heard. Fortunately the population isn't so dense where I live, so I've not been having any problems so far.

A little bit sad to see iPod sales declining, given that the iPod really catapulted Apple back into the mainstream. I suppose it was inevitable, though, whether or not they released the iPhone.

Zero 1

July 22, 2009, 3:05 pm

Yes agree with you purephase, i m also in the london area and live just outside of it. The signal is terrible, i hardly use the 3gs to browse because i hardly ever get a signal. Problem gets worst indoors too, my old nokia E71 on 3 had a 3g connection most places i go. Very disappointed with O2....


July 22, 2009, 3:38 pm

Um, about that drop in iPod sales... surely that's nothing to worry about considering that many potential iPod customers would have gone for the iPhone instead? Yes, the iPhone is considered to be seperate from the iPod range but in reality it's very much a part of it. Certainly it seems unlikely that someone would buy an iPhone AND another (non-Apple) MP3 / Media player unless they were really unhappy with the iPhone.


July 22, 2009, 6:03 pm

@bofh uk; its more of a case that people now use the music playing function on their regular phones instead. With even mid range phones now offering expandable storage and memory as cheap as it is, it just seems cumbersome carrying an ipod with you too.

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