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Apple Q1 2011 Financial Results - $26.74 Billion Revenue, 7.33 Million iPads Sold

Apple just posted their Q1 2011 financial results. The company posted a record revenue of $26.74 billion with 7.33 million iPads sold, 16.24 million iPhones and 4.13 million Macs. The company posted record net quarterly profit of $6 billion, or $6.43 per diluted share. 19.45 million iPods were sold during the quarter.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Steve Jobs, Apple’s CEO. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”

In the last quarter, Apple posted record iPhone and Mac sales with 14.1 million iPhone sold, 3.89 million Macs and 4.19 million iPads. The company posted record revenue of $20.34 billion and net quarterly profit of $4.31 billion. In the year-ago quarter, Apple posted revenue of $15.68 billion and a net quarterly profit of $3.38 billion. 3.36 million Macs were sold in Q1 2010, together with 8.7 million iPhones and 21 million iPods.

Apple will provide live streaming of its Q1 2011 financial results conference call at 2:00 PM Pacific, and we’ll update this story with the conference highlights.

Full press release embedded below. Unaudited summary data available here.

Notes from the call:

- Revenue $26.7 billion, increase over $11 billion over year

- Income $6 billion, over $1,7 billion from year ago quarter

- Strong demand of new MacBook Air

- Strong sales of Mac Pro

- Mac App Store available in 90 countries, doing well with over 1000 apps available

- iPod share remains at over 70% in market, iPod top selling in most countries

- iTunes: $1.1 billion revenue

- iTunes users are renting over 400,000 TV show episodes, 150,000 movies per day

- Enterprise: 88 of Fortune 100, 60% of Financial Times Europe testing or deploying iPhones

- Fortune 500, Wells Fargo, Dupont, Staples, Starbucks made iPhone available to employees

- iPad now available in 46 countries

160 million iOS devices sold to date

- Over 80% of Fortune 500 are deploying or piloting iPad

- Apple retail: revenue $3.85 billion

- 851,000 Mac sold at Apple retail stores, half sold to new customers

- 323 stores worldwide, 87 outside US

- 75.7 million customers in Apple retail stores

- Four stores in China with highest traffic and highest revenue

- Apple has $59.7 billion in cash now

- $22 billion in revenue expected for next quarter, 38.5% expected gross margin

Quotes From Q&A

Tim Cook: “Very happy with the Mac App Store so far”

TC: “We believe the results from the Verizon iPhone will be huge”

TC: “We are working around the clock to build more iPhones”

TC: Revenue from Greater China (Mainland China, Hong Kong, Taiwan) last quarter was $2.6 billion, up 4 times last quarter

TC: 15 more countries to start selling iPhone in January

TC: “Commodities – going into March quarter. Key metals pricing increasing but other commodities such as batteries and RAM we expect to fall.”

TC: “Apple is doing its best work ever. We are all very happy with product pipeline and the team here has an unparalleled breadth and depth that Steve has driven in the company, and excellence has become a habit. We feel very very confident about the future of the company. I would also note that we’ve done outstanding job in our Mac: 19 straight quarters of outgrowing market, but still have a very low share. It would seem like still enormous opportunity there.” [via]

TC: Apple is not doing a 7-inch tablet, which would be a scaled-up smartphone. It’s a bizarre product.

TC: “Put Android & Windows tablets side by side with an iPad and an enormous percentage will choose iPad.”

TC: “Next generation Android tablets - there’s nothing shipping. They lack performance specs, they lack pricing, they lack timing - so today they’re vapor.”

TC: ” We’re very confident for entering a fight with anyone.”

Tim Cook on iPad sales Vs. Mac sales: “Yes, I think there is some cannibalization”

Record Mac, iPhone, iPad Sales Drive Highest Revenue and Earnings Ever

Revenue Grows 71 Percent; Earnings Grow 78 Percent

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2011 first quarter ended December 25, 2010. The Company posted record revenue of $26.74 billion and record net quarterly profit of $6 billion, or $6.43 per diluted share. These results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter. Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter”

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The Company sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. Apple sold 19.45 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. The Company also sold 7.33 million iPads during the quarter.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Steve Jobs, Apple’s CEO. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”

Apple will provide live streaming of its Q1 2011 financial results conference call beginning at 2:00 p.m. PST on January 18, 2011 at www.apple.com/quicktime/qtv/earningsq111. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 25, 2010 and its Form 10-Q for the quarter ended December 25, 2010 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple is reinventing the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

© 2011 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

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