iPhone Boosts Apple’s Profits, Causing Blowout Summer Quarter

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iPhone Boosts Apple’s Profits, Causing Blowout Summer Quarter

6:30 am on October 23, 2007 | Category: Business, Mobile Devices, Cell Phones, Multimedia

Apple Inc. posted another blowout set of financial results yesterday, reporting profits of $904 million, or $1.01 per share, on revenue of $6.22 billion for the fiscal quarter ending on September 29.

Mac computer shipments were up 34% compared to the same period last year, while iPod sales jumped 17%. The long-anticipated Apple iPhone device, which was released in the U.S. on June 29, also boosted revenue significantly, with 1.1 million units sold in its first three months of availability.

The controversial iPhone price cut on September 10, which saw the 8GB handset reduced from $599 to $399, further bolstered the product’s sales, and resulted in almost 400,000 iPhone shipments in the last 18 days of the quarter. A further 300,000 units were sold in the first three weeks of this month, bringing the total number of iPhone owners to 1.39 million, a lofty figure considering it took Apple two years to sell 1.4 million iPods.

Apple’s Chief Operating Officer, Tim Cook, is sticking by his prediction that the company will sell 10 million iPhones in the 2008 calendar year, as the revolutionary device becomes available in numerous additional markets throughout Europe and Asia.