Apple defies economic downturn; posts strong profits!
By Tarry Singh at 21 January, 2009, 2:58 pm
Apple Inc. shattered analysts’ estimates for profit and sales last quarter, defying the worst U.S. holiday shopping season in at least four decades. The shares jumped 8 percent in late trading.
First-quarter net income climbed 1.5 percent to $1.61 billion, or $1.78 a share, from $1.58 billion, or $1.76, a year earlier, Apple said today. Sales rose 5.8 percent to $10.2 billion in the period ended Dec. 27. Analysts surveyed by Bloomberg estimated profit of $1.39 and sales of $9.76 billion.
Apple updated its Macintosh notebook computers, revised its iPod designs and began selling the iPhone in more overseas markets to help boost sales over the holidays. The company is operating without the daily oversight of Chief Executive Officer Steve Jobs, who is on medical leave through June.
“They sell a premium product, and if this is truly one of the worst economic backdrops since the Great Depression, this is a huge triumph,” said Jim Grossman, an analyst at Appleton, Wisconsin-based Thrivent Asset Management, which owns more than 800,000 Apple shares among about $67 billion in assets.
Apple, based in Cupertino, California, rose $6.66 to $89.49 in late trading after closing at $82.83 on the Nasdaq Stock Market. The shares declined 57 percent last year.
IPhone Sales
Apple sold 4.36 million iPhones in the quarter, a record 22.7 million iPods and 2.52 million Macs. Analysts were anticipating 5 million iPhones, 18.6 million iPods and 2.4 million Macs, Munster said.
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