Apple’s stock price surged past $400 for the first time, after record sales of iPhones and iPads pushed third-quarter profit beyond estimates. Net income during the period was $7.31 billion ($7.79 per share), which is more than double of last year’s $3.25 billion ($3.51 per share). This was helped by iPhone sales in China, where total revenue jumped sixfold to $3.8 billion.
Overall sales jumped 82 percent to $28.6 billion. Analysts had predicted a profit of $5.87 per share and a revenue of $25 billion. Apple sold 20.3 million iPhones and 9.3 million iPads in the third quarter, which ended June 25. Mac computer sales were 3.95 million
Having overcome supply shortages for the iPad 2 after its March debut, saw sales of the iPad soar, reported Adam Satariano of Bloomberg. The tablet is now Apple’s second-largest source of revenue – behind the iPhone – less than two years after its initial launch.
After the results were released, Apple shares shot up 7.5 percent to $405 in extended trading. The stock is up 17 percent this year.
The report eased investors’ concerns that sales would suffer from the lack of a new iPhone, which isn’t expected until September. The Cupertino, California-based company also has been operating without the day-to-day attention of Chief Executive Officer Steve Jobs, who has been on medical leave since January.
Apple’s results assuaged worries by investors that sales would suffer because a new iPhone will only be available in September. Its foray into China and other fast-growing economies helped compensate slower growth in the U.S. Sales in China, Taiwan and Hong Kong accounted for $8.8 billion in the first three quarters of the fiscal year, Apple revealed.
The Wall Street Journal has cited unmamed sources familiar with the issue that since Jobs went on leave, some members of Apple’s board have discussed CEO succession with executive recruiters. The talks included at least one head of a high-profile technology company, the Journal added.
The results also substantiated the belief that tablets are cannibalizing sales from traditional personal computers. Apple claims that 86 percent of Fortune 500 companies are testing or deploying the iPad, and disclosed that sales of the tablet beat those of the Mac computer among primary and secondary schools.
