May 21, 2018
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Apple results strong; record iPhone, iPad sales

By PETER SVENSSON, The Associated Press

NEW YORK — Apple Inc.’s results trumped expectations for yet another quarter, with iPhone and iPad sales setting new records.

Its stock surged $19.85, or 5.3 percent, to $396.70 in extended trading after the results came out Tuesday. The stock was already at record highs.

The strong results show that Apple can deliver even with CEO Steve Jobs on indefinite medical leave. It was Apple’s first full quarter since Jobs turned over day-to-day operations in January to the company’s chief operating officer, Tim Cook. Jobs remains involved in major decisions, including announcements of new products.

Net income in the fiscal third quarter, which ended in June, was $7.31 billion, or $7.79 per share. That’s more than double the $3.25 billion, or $3.51 per share, a year ago.

Analysts polled by FactSet were expecting earnings of $5.82 per share.

Revenue was $28.6 billion, up 82 percent from $15.7 billion a year ago. Analysts were expecting $24.8 billion.

The results were lifted by the sale of 20.3 million iPhones, millions more than analysts had expected.

IPad sales came in at 9.25 million units, also above analyst expectations. Last quarter, the company was struggling to make enough of the new iPad 2. Apple has sold nearly 29 million iPads since they first went on sale in April 2010.

In other product categories, trends were less impressive. Sales of Mac computers were 3.95 million, up 14 percent from a year ago. That’s the lowest quarterly growth rate in two years.

IPod sales were down 20 percent at 7.5 million, as the media players continue to lose out to iPhone and iPads. It was the fastest quarterly decline yet.

Chief Financial Officer Peter Oppenheimer said Lion, the new version of the Mac OS X operating system, will go on sale Wednesday. The company had previously said the software upgrade would go on sale this month for $29.99. Lion mimics some of the features of the iPhone and iPad interface.

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