8.7 Million iPhones Sold in Q1 2010 -- Apple Financial Results


Apple today announced their Q1 2010 financial results, covering the all-important holiday quarter, with 8.7 million iPhones sold, and a 55% increase in iPod touch sales. Total revenue was $15.68 billion, and cash-on-hand is now approaching a whopping 39.8 billion! Says CEO, Steve Jobs:

“If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company,” said Steve Jobs, Apple’s CEO. “The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about.”

Way to iTablet tease us there, big fella.

During the conference call that followed, CFO, Peter Oppenheimer and COO, Tim Cook revealed:

  • 17 new carriers for the iPhone, including Bell Canada, Telus Canada, Orange Canada, China Unicom, Korea
  • iPhone "very strong" in Japan, Australia, UK, Germany
  • Business users ranked iPhone #1 in satisfaction according to JD Power
  • 70% of Fortune 100 businesses piloting or deploying iPhone
  • New accounting methods mean $25 of iPhone revenue deferred for "updates"
  • Apple defended AT&T, said they have higher broadband usage than any other carrier, great experience for many customers, and have shared with Apple plans to improve problem cities
  • 2.7 million iPhones in channel, including in-transit, invoiced to carriers, demos.
  • 200,000 iPhones activated in China. Ramping slowly to ensure customer experience.
  • Nothing on Nokia lawsuit.
  • 90% of iPhone Apps approved in 14 days. Apple wants to protect privacy, prevent porn, defend children. Most frequent cause of rejection is bugs in app.
  • Cook: Noise about App Store frustration may be higher than reality (orly?)
  • Could anything equal Mac, iPod, iPhone for Apple? Wait for Wednesday!
  • iPhone 3GS features accelerated corporate adoption (hardware encryption?)
  • Adding carriers in existing countries earned incremental growth.
  • Quattro Wireless was acquired to provide developers, especially those who develop free apps, a seamless way to earn money.
  • iTunes/App Store still run just above break even, Apple reinvests revenue to maintain and improve customer experience as it scales.
  • Japan iPhone growth 400%, Asia Pac iPhone growth 500%
  • On Google: Apple competes with Google in some areas, works with them in others.

For more from the conference call, check out TiPb's live coverage!

Have something to say about this story? Leave a comment! Need help with something else? Ask in our forums!

Rene Ritchie

EiC of iMore, EP of Mobile Nations, Apple analyst, co-host of Debug, Iterate, Vector, Review, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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Reader comments

8.7 Million iPhones Sold in Q1 2010 -- Apple Financial Results


Thats friggin crazy man - 8.7m phones!! I guess I'm trying to figure out how the Q1 could end in January! LOL

500% increase in Asia Pacific... Well that explains why it seems like EVERYBODY has an iPhone here! :p
The "tablet" stuff, well that's just cruel they way they are teasing us.

Companies can set their fiscal years anytime they want. The calender has no bearing really. The US gov fiscal year runs from September to September.

Analysts don't see iPhone sales quite as rosy as Apple would like you to believe. In fact they are seeing signs of a slow-down of growth:

Apple sold a record 8.7 million iPhones and 3.36 million Macs in the holiday shopping season, which has been Apple’s biggest sales quarter for the past four years. The iPhone and Mac together account for more than 60 percent of revenue.
Gene Munster, an analyst with Piper Jaffray & Co. in Minneapolis, said investors were looking for about 8.8 million iPhones and 3.1 million to 3.2 million Macs.
Some investors were expecting iPhone sales of 10 million, said Shaw Wu, an analyst at Kaufman Bros. in San Francisco.
“The Mac number looked good and was impressive,” he said. “IPhone shipments were light.”

pureness by iPhone, scratch that pureness by Apple. and way to defend AT&T. good to see that relationship is strong

They wanted 10 million. So it's no wonder the investors aren't as happy. Although 10 million in one qtr is an ass load of phones.

I this explains why the stock hasn't moved much. Hopefully Wednesday will send it skyward.
Apple's upside comes from accounting shift
5:31p ET January 25, 2010 (MarketWatch)
SAN FRANCISCO (MarketWatch) -- At first glance, it looks like Apple Inc.'s fiscal first quarter was a serious barn burner, as its revenue and earnings per share numbers widely surpassed Wall Street's expectations.
Apple reported fiscal first quarter revenue of... On that basis, the quarter looks like a major blow-out.
But it appears that Wall Street's first quarter estimates don't include the positive impact of a major new accounting rule related to revenue recognition for certain products, namely how Apple can now account for sales of its popular iPhone and Apple TV.
The new accounting rules let Apple recognize substantially all of the revenue and product cost for the iPhone and Apple TV when those products are delivered to customers. Apple had been using subscription accounting, which deferred significant amounts of revenue and cost of sales related to those devices over a longer period.
Apple's quarter was actually pretty much on target, when one looks at the unit sales of its devices. IPhones, iPods and Mac computers sold pretty much in line with analysts' forecasts for the period.
That may explain why the stock was trading down in the after-hours on Monday. In any event, most Apple watchers are just biding their time until the company's big event on Wednesday, when it will supposedly unveil its tablet computer. Until then, it's pretty much wait-and-see.

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