Return to Apple: New Developments Await
In a promising start to fiscal 2012, tech giant Apple has demonstrated its knack for expectation-defying performance, as reported in the company's earnings for the last quarter.
The Cupertino-based company saw a significant rise in revenue, with top-line figures reaching $46.33 billion—a 73% increase from the previous year. This surge was underpinned by a gross margin that jumped from 38.5% to 44.7%, indicating a more efficient use of resources.
Apple's success story was not limited to its home turf. The company reported that 58% of its revenue came from abroad, with the Asia Pacific region experiencing the highest growth in Mac unit sales, rising by 58%.
The star performer in Apple's product lineup was undoubtedly the iPad. The tablet alone exceeded Hewlett-Packard's estimated PC sales for the quarter, selling 15.43 million units—a 111% jump from the previous year. The average selling price (ASP) for the iPad dropped from $629 last year to $593, suggesting a broader appeal for the device.
The iPhone also continued its impressive run, with unit sales reaching 37.04 million—a 128% gain. The iPhone ASP ended up being $659, slightly lower than expected.
Notably, more than half of the iPod sales were iPod Touches, which run on iOS. However, the iPod's overall performance was lacklustre, with units and revenue falling 21% and 26%, respectively.
As for Apple's cash and investments, they now tower at $97.6 billion. CFO Peter Oppenheimer stated that the company is in discussions about the best uses of this substantial cash balance.
Analyst Evan Niu identified Apple, Google, and Amazon as potential winners of the mobile revolution. He believes that a company with exposure to the explosive growth in China has excellent prospects in the mobile revolution, and it is one of the few players that will help power the mobile devices of the future.
In conclusion, Apple's record-breaking results for the last quarter underscore its leading role in the mobile revolution, which is set to become the next trillion-dollar market. With its innovative products and strategic positioning, Apple continues to be a formidable force in the tech industry.
