Apple posts record iPad sales, profits miss Wall Street targets

Sales of Apple’s iPad topped 17 million units in the company’s most recent quarter, up more than 80 percent over the same quarter a year ago, demonstrating the continued momentum of Apple’s tablet.

The results were released a short time ago. The company overall missed Wall Street’s expectations for earnings and revenue. Apple posted revenue of $35 billion and earnings of $9.32 for the quarter ended June 30. Analysts polled in advance by Thomson Reuters expected revenue of more than $37 billion and earnings of $10.36 per share.

Apple also announced that Mountain Lion, the next version of Mac OS X, will be released on Wednesday.

The continued growth of the iPad shows that many consumers are continuing to opt for the Apple tablet over lower-priced portable Windows-based notebooks. Hoping to cut into Apple’s momentum, Microsoft is releasing its new Windows 8 in August, with a tablet-friendly interface and a special Windows 8 version that works on ARM processors common in tablets and mobile devices.

Sales of iPhones were 26 million in the quarter, up 28 percent. Apple sold 4 million Macs, up 2 percent.

Apple’s quarterly conference call with analysts begins at 2 p.m. Pacific.

  • Guest

    Ouch! Looks like the delays of iPhone 5 are really hurting sales worse than we expected. We’d like to see Apple’s CEO impart some visionary ideas beyond higher- definition displays and different cable connectors; otherwise, the “iPhone” could become the “wasPhone” by 2015.

  • Tommy Salvatore

    This is the beginning of the end of Apple as a $500B market cap tech titan. One interesting stat – Win 7 phone outsold Mac for the quarter.
    Apple is a cell phone and tablet company with aggressive competition and fickle consumers.
    Watch out below !

    • Ryan

      Comparing mobile devices that sell for $0, or $99, to laptops that sell for $1,000+ isn’t an interesting stat, at all.

      • Jenny Emostich

        I think the point was that Mac is just as insignificant as
        Win7 phone. Apple is a consumer electronics company now not a computer company
        anymore.

    • Guest

      Uh-huh. I bet you said that @ $100b, $200b, and every other point along the way to $500b. Four years ago, Apple wasn’t a phone or tablet company. Four years from now, they will have added entirely new profit centers while those two continue to be cash cows. That’s the difference between a company that constantly innovates and reinvents itself versus someone like Microsoft who can’t, and is being disrupted as a result.

      • Apple Picker

        Apple was able to take a low margin cellphone hardware business and push to high margin but have now taken it as far as it can go. Going forward, profit margins will drop. This margin squeeze from lower priced iPad and iPhone will result in a stalled stock price. At best the stock will stall out and not go higher, even with higher revenue from more units shipped.
        I would not own Apple stock at these current levels.

        • guest

          Critics said the same thing following their success taking the low margin music player business and creating the high margin iPod. iPhone should continue to grow even if it loses some share. iPad has the potential to replace most consumer PCs over the next few years. And then there’s whatever new things Apple unleashes. Lots more upside to come. If AAPL was pricey I could see your argument. But they’re not. Relative to growth and the dominance of their competitive position they’re actually cheap. AAPL > $1000 by 2015. MSFT will be at <$20.

  • Guest

    Yeah, terrible quarter. Revenue only up nearly 30% compared to Microsoft’s 4%. And this despite Apple now being almost twice as large. So much for the “law of large numbers” excuse favored by Ballmer and his apologists. Phones up a similar amount even while many are holding off for iPhone 5. And iPad continues to disrupt PCs with sales 80% vs the PC market’s -1%. RIP Microsoft. I’ll be taking advantage of any weakness in Apple stock to add more.