Apple results give Tim Cook last laugh at critics
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Wednesday 25 April 2012
Apple confounded a chorus of sceptics to post blow-out sales of the iPhone and quarterly profits that have doubled in just a year.
The gadgets giant sold 35 million iPhones in the first three months of 2012, more than analysts had expected. The results showed no sign of the slowdown in the United States that some telecoms-industry insiders had warned about.
Apple shares had gyrated wildly in the run-up to its results statement last night, but the moment it came out the stock was again on a tear. After-hours trading indicated it would open up 7 per cent today.
Tim Cook, chief executive, said mobile carriers are still happy to pay subsidies to Apple to make it affordable for their customers to get an iPhone. "It's important to remember that the subsidy is not large compared to the monthly payments in a 24-month contract period," he said. "The churn from iPhone customers is the lowest of all the phones they carry and that has a direct financial benefit to the carrier."
Thanks also to soaring sales of the iPad tablet and a resurgence of interest in its Macintosh laptops, Apple achieved $39.2bn (£25bn) in revenue in the quarter and $11.6bn in profit, up from $24.7bn and $6.0bn in the first three months of 2011.
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