Apple still too cool for recession, posts best non-holiday quarter

PC sales were down, major firms posted bleak results, and the recession was still in full swing last quarter. How did Apple do? Oh, not too bad: it only posted its best non-holiday fiscal quarter ever.

Here’s how numbers for Apple’s third fiscal quarter, which ended on June 27, compare with the company’s past results:

  Q3FY08 Q2FY09 Q3FY09
Revenue $7.46 billion $8.16 billion $8.34 billion
Net profit $1.07 billion $1.21 billion $1.23 billion
Gross margin 34.8% 36.4% 36.3%

By the way, Apple stresses that these figures don’t show the whole picture, since GAAP rules require the firm to spread out revenue from iPhones and Apple TVs over those products’ economic lives (roughly 24 months). Without deferring revenue and costs, Apple claims it enjoyed $9.74 billion revenue and $1.94 billion net income last quarter.

Much of Apple’s success last quarter came from growing iPhone and Mac shipments, judging by the shipment numbers below:

  Q3FY08 Q2FY09 Q3FY09
Macs 2.5 million 2.2 million 2.6 million
iPods 11 million 11 million 10.2 million
iPhones 0.7 million 3.8 million 5.2 million

Interestingly, shipments of iPods actually fell last quarter. That could well be because some folks choose to purchase iPhones instead of stand-alone music players—especially now that the iPhone 3G is down to $99. In any case, this is the second time Apple has posted recession-defying results this year.

Comments closed
    • End User
    • 13 years ago

    LOL. True.

    I’m not really a MS hater (I’ve purchased 3 full retail copies of Vista) but I just plain forgot about them.

    Ugh – > §[<http://www.ft.com/cms/s/0/677c3904-77c8-11de-9713-00144feabdc0.html?nclick_check=1<]§

    • Fighterpilot
    • 13 years ago

    aww…you forgot Microsoft….

    l[

    • mcnabney
    • 13 years ago

    Their Cap is idiotic.

    Their P/E is over 28 for godsake!! They are just as overvalued as Google right now. IBM at least makes real money since their P/E is 12. All the idiots bidding Apple up are just gambling that they will get their money out before it dips back down to 80 again (which is where it was at the beginning of the year).

    • snakeoil
    • 13 years ago

    no, there is another way…but thats a secret.

    • Kurotetsu
    • 13 years ago

    Nowadays your choices are: Follow the Apple herd, Follow the PC/Windows herd, or Follow the Linux herd.

    The only way to be truly unique is not to use a computer at all.

    • End User
    • 13 years ago

    Apple’s market cap:

    §[<http://www.electronista.com/articles/09/07/22/apple.passes.goog.mkt.cap/<]§ Apple @ 141.5B Google @ 138.54B RIM @ 46.5B IBM @ 155.6B Dell @ 27B HP @ 99.51

    • Tamale
    • 13 years ago

    Agreed. I actually USED to like Apple.. now I can’t stand their image. Funnily enough, I like some of their products, but I can’t stand the way they market them, the way they bash their competitors, or especially the way they attempt to keep their stuff as closed as possible.

    Lots of other companies fall into the other extreme for me.. they might make ho-hum products, but I have far fewer reasons to hate them as a company.

    • Tamale
    • 13 years ago

    Wonder how their sales compare to Nokia’s..

    • Trymor
    • 13 years ago

    Apple: Lemon… I got it.

    • Meadows
    • 13 years ago

    Now _[

    • Fighterpilot
    • 13 years ago

    That’s probably because they refuse to feed the Apple Troll.
    Nice try tho.Just in case you forgot…..Apple would just be a smudge on the pages of tech history if Microsoft hadn’t stepped in and bailed them out as they were going bankrupt during the ’80s.
    How cute you failed to remember that.

    • ludi
    • 13 years ago

    So half your argument is based on speculation, and the other half on extrapolation. That’s real encouraging. I don’t deny the value of your personal experience with the NDAs in question, and Asians are well known for their honor code, but why be ridiculous about it? I mean, it’s not like this guy had a really cool job that he was probably going to lose on account of failing his responsibilities, and maybe started breaking down from there. Or that Apple necessarily had any knowledge of Foxconn running a Brute Squad in their security divison.

    Come to think of it, a guy hung himself in his dorm room closet while I was in my freshman year of college: were our professors “responsible” for giving him too much homework? Maybe the registrar is at fault, since they assigned him a standard curriculum? Maybe Student Life is culpable since they gave him access to a clothes rod? Maybe we can go out farther and fault the entire alumni association by a six-degrees-of-Kevin-Bacon chain of tortured logic?

    At some point you’re merely toying with Chaos Theory by other names and colors.

    • snakeoil
    • 13 years ago

    im doing my best.

    • dpaus
    • 13 years ago

    Sorry guys, but you’re way off base here. I make software products for Windows, Mac and Linux platforms, so I can hardly be accused of being a fanboi or “Hater” for/of any one of them. On the other hand, I have direct, up-close-and-personal experience with both Apple’s and Microsoft’s NDAs (and RedHat’s, and AMD’s, and Intel’s, and Palm’s…), as well as second-hand experience with other developers that we work with, and it’s from that experience that I speak of Apple’s cult of secrecy when it comes to new products. Yes, all firms want to protect new products from unauthorized leaks, but Apple goes much further than any of the others I’ve dealt with (except maybe ESRI, and lately, Palm, but I put that down to the Apple influence there). None of us know the details of what drove this poor guy to suicide, but I would not be surprised to find that Apple’s reaction to the loss was a factor. In North America or Europe, that reaction would not have the same effect. In Asia, well… things are different.

    • KoolAidMan
    • 13 years ago

    My apologies.

    That said, I still prefer the BB and iPhone; Android falls well within the category of phone operating systems that I’m not a fan of. I’m not even going to get into HTC hardware. 🙂

    • SomeOtherGeek
    • 13 years ago

    It is easy:

    1) Get a apple
    2) Take a bite
    3) Stick apple on a pencil
    3) Get some transparency white paper
    4) Make a cube
    5) Put apple inside

    Hey, Steve Jobs! Where is my money?!

    • SomeOtherGeek
    • 13 years ago

    Was that a tongue twister?

    • Swollen_Goat
    • 13 years ago

    HTC Magic runs Android. Get your facts straight please.

    • MadManOriginal
    • 13 years ago

    I wouldn’t say it’s a i[

    • MadManOriginal
    • 13 years ago

    No, it’s even cooler now that more people like Apple. There’s ‘follow the herd’ cool and there’s the real cool which is not following the herd just to follow the herd.

    • videobits
    • 13 years ago

    My HTC Touch Pro is working just fine. And I’ve been enjoying its copy and paste features for 9 months now.

    My daughter on the other hand got a Blackberry Curve about the same time and has finally given up on that model after having problems with at least 3 of those phones in a row.

    • green
    • 13 years ago

    that’s a weird view… pretty sure people weren’t hating apple in the 90’s because it was ‘cool’
    pretty sure it was because the hardware was overpriced, the performance claims were at times absurd, and the software wasn’t too great

    • KoolAidMan
    • 13 years ago

    Most importantly, they’re not /[

    • KoolAidMan
    • 13 years ago

    iPod sales were beginning to go flat back in 2007. How much more of a product can you sell as you begin to saturate the market with it? Growth was gone so the timing of the iPhone and iPod Touch was pretty much perfect.

    I’ll be curious to see what replaces the mobile OS X devices if they reach something like the iPod levels of market dominance. Apple has maintained massive growth for years now, I wonder what they’ll have up their sleeves to keep it going.

    • KoolAidMan
    • 13 years ago

    Congratulations on supporting crap products. Windows Mobile * HTC = Fail Squared.

    The iPhone and the Blackberry Bold and Curve are honestly the only three smartphones I would consider at this point, nearly everything else is garbage in comparison.

    • internetsandman
    • 13 years ago

    it’s not a question of being cool or not. it’s a question of whether hating apple is worth it anymore. as adisor said, their operating system has improved, their hardware has improved, and clearly, millions upon millions of people love apple now. I don’t find there to be any particular reason to hate apple any more. sure, you can dislike it, sure, you can prefer using something else, but apple has left the days where it deserved hatred far behind

    • Byte Storm
    • 13 years ago

    Oh because it is no longer “cool” he has to change his views?

    • jdaven
    • 13 years ago

    What is more depraved is that the source of dpaus’ ‘observations’ are based off of hatred of a company because of a stupid rivalry created among computer enthusiasts.

    We read stories all the time of bad things happening because of other companies like workers dying in mind shafts. But that doesn’t stop us from using electricity. No these comments are from a marketing spat pitting PCs versus Macs and have no limits to how horrible fanboy thoughts can be towards the company they perceive to be the enemy.

    • Thresher
    • 13 years ago

    I’m IN the Midwest and my AT&T 3G coverage is fine. I don’t doubt there are pockets where my coverage would be lousy, but every carrier faces that.

    My point is that the average customer doesn’t think of the coverage area as a huge factor.

    • ludi
    • 13 years ago

    Yikes, that’s some pretty lousy causal logic. NDAs are not a novel invention of Apple, lots of companies use them as standard elements of a contract negotiation.

    NDAs issued by Apple certainly have force because Apple is a wealthy customer that no smart businessperson would want to lose, but your “cult of secrecy” language pretty much screams out your prejudices, and makes your “I was only making an honest observation” defense ring hollow.

    To review:

    1) Foxconn reviews Apple prototypes under NDA, loses one unit.
    2) Foxconn’s security overzealously targets the party who was responsible for managing the prototypes.
    3) Responsible party turns suicidal for reasons that may have been absue suffered during (2), may have been stress over (1), or may have been the inevitable end of something else entirely that (1) or (2) merely aggravated.
    4) Foxconn investigates, fires head of security.
    5) Apple investigates, issues statement of regret.

    In your mind, all this translates to some sort of cult conspiracy?

    • adisor19
    • 13 years ago

    Anything else ?

    FYI, it was cool hating on Apple back in the 90s but once OS X came out and matured a bit and once they switched to x86 CPUs, it’s no longer the case.

    Just thought i’d let you know,

    Adi

    • kenclopz
    • 13 years ago

    The apple cube on the front page is bad ass. Where is it located? And where can i get one of these in small form factor?

    • Konstantine
    • 13 years ago

    I truly hate apple.I hate their adds, Steve Jobs who reminds me of Jen Hung Sung, and their overpriced, overrated products.

    Death to Apple.

    • thecoldanddarkone
    • 13 years ago

    Ehh, go to the midwest. Verizon and Sprint have 3g cdma while at&t doesn’t.

    We are expanding our coverage every day but unfortunately this is one of the few areas we haven’t reached yet. Please check back soon. If you think you may have entered the wrong ZIP, please re-enter and try again

    That’s a carrier problem that is obviously going to hinder a person from buying an iphone. I’ve also found that with the people I know they are likely to stick with what already works for them.

    • ludi
    • 13 years ago

    Why not? Look at the raw numbers. The iPod line is flat followed by a slight sag, while iPhone takeup is going great guns. People can only carry, and pay for, so many similar-featured $300 gizmos at once, and once you’ve dumped that kind of money into a portable device that has a good music interface, why /[

    • ludi
    • 13 years ago

    When does the spaceship come to pick you up?

    • Thresher
    • 13 years ago

    I don’t think that’s the average value proposition though. For many people looking at the thing, they get a 2 for 1 deal if they go with the iPhone and they get it at a lower price than they would if they just get the iPod Touch.

    Additionally, it may shock you, but most people don’t give a damn about the carrier.

    • SomeOtherGeek
    • 13 years ago

    Apple is a lemon… True fact.

    • SomeOtherGeek
    • 13 years ago

    I guess, we are trying to become more civilized… You don’t want that? Ok, await my next post!

    • MadManOriginal
    • 13 years ago

    lol adi just ignore him. All he posts is poorly written trolls, same username does the same thing at DT.

    • adisor19
    • 13 years ago

    You’re seriously starting to sound like you’re brainwashed or something..

    Adi

    • snakeoil
    • 13 years ago

    apple user i have a question for you:
    would you sell your soul for a spanking brand new iphone 4g?
    you don’t have to answer.

    • adisor19
    • 13 years ago

    Is that all you got ?! Come on guys, i was expecting more quality in your flames..

    I am very VERY disappointed in all you Apple bashers 🙁

    Adi

    • dpaus
    • 13 years ago

    Just wow, indeed – I can’t imagine how you could /[

    • ssidbroadcast
    • 13 years ago

    Let this be a lesson to other industry competitors:

    Untapping Latent Wants > Anything Else.

    • SomeOtherGeek
    • 13 years ago

    Well, Thank you, Apple! My stock options are doing good cuz of your business, so keep up the good work. Of course, I don’t own a Mac and most likely never will. But stocks that is a different story.

    • snakeoil
    • 13 years ago

    apple user, get a life and a personality, dont let steve jobs decide what is good for you, remember if you die and you don’t have a personality you will be sent to purgatory or hell.
    yes, yes, you are allowed to take your iphone to hell.

    • MadManOriginal
    • 13 years ago

    Whatever makes you feel better buddy, I don’t see why people are so hell-bent on proclaiming the laptop hunter ads failed. Facts are that Apple dropped prices and as End User quoted q[

    • TheShadowself
    • 13 years ago

    Anyone who believes the implications in that linked article is extremely foolish. I know you said “If this is to be believed…”, but you do put it forth with a link to is thus promoting that article yourself.

    Reality:
    First, it’s a Microsoft person claiming he was called and begged by Apple’s legal department to halt an ad that was hurting Apple’s sales. On simple face of this it’s ridiculous. Apple’s legal department wouldn’t call him. Apple’s legal department would send a letter to Microsoft’s legal department. (Hell, Apple’s legal department does not call Joe Nobody for any reason. They send letters or at the very least emails so they have a legal record of what was said.) Second Apple would not call Microsoft to solely complain that an ad was hurting Mac sales. That would be THE dumbest thing anyone in any business could do — and while Apple may be a lot of things (many of which really tick me off) being exceedingly dumb in business is NOT one of the them.

    Second, IF (and I can’t say that IF strongly enough) that phone call was made it was to get Microsoft to stop running an ad that was flat out wrong and misleading. Apple’s laptop in question in the ad had been selling — at full list price – for $1699 for several weeks at the time of the supposed phone call. Microsoft was still running an ad — even after the supposed phone call — that showed both $1999 and $2499 prices for that $1699 laptop. Clearly Microsoft knew several weeks after the fact that the prices were wrong, but Microsoft continued to show those ads with the wrong prices. Thus IF there even was a phone call it was over inaccuracies in the Microsoft ad. It certainly wasn’t about Apple whining.

    • dmitriylm
    • 13 years ago

    A fool and his money are easily parted!

    • End User
    • 13 years ago

    “Apple sold a total of 849,000 desktops during the quarter, generating $1.129 billion in revenue. The shipments and revenue are up 4 and 8 percent sequentially, but down 10 percent and 18 percent year-over-year.

    In notebooks, Apple shipped 1.754 million of its portables during the quarter, creating exactly $2.2 billion in revenue. These statistics are healthy increases of 25 percent in units and 16 percent in revenue sequentially, but show an emphasis on lower-cost systems with a 13 percent increase in units year-over-year with a 2 percent drop in revenue.”

    • adisor19
    • 13 years ago

    Uhuh, i guess you feel you should justify your purchase somehow and what better way then a lil’ iPhone bashing. You might wanna provide some arguments to support your claim instead of calling Damage a “misguided fool”. Just sayin’.

    Adi

    • End User
    • 13 years ago

    Not sure about the Magic destroying the iPhone but the Hero smokes the Magic.

    • Swollen_Goat
    • 13 years ago

    My HTC Magic destroys the iPhone in every conceivable way. I suppose it’s good to see Apple doing so well in these tough times, even if it’s on the backs of misguided fools.

    • jdaven
    • 13 years ago

    Wow, you really are a too far gone Apple Hater. The suicide was the result of the extreme practices of the Chinese government when it comes to businesses.

    Did you know that they executed company executives and government employees during the melamine scare in children’s and pet food?

    Do you actually, I repeat, do you actually, think that Apple requested the torture of some guy for leaking a prototype?

    Wow, you must also be one of the birthers who thinks Obama is not a natural born citizen. Just wow.

    • no51
    • 13 years ago

    I sold one thing today when yesterday I sold none. That’s an infinity% increase.

    • MadManOriginal
    • 13 years ago

    And yet net profit went up by 1.6% sequentially with flat margins. There’s not enough detail here breaking out iStuff vs Mac figures but what does that tell you? *And that 25% number is for all Macs, not just laptops.

    • no51
    • 13 years ago

    That he does and that business is making lots of money.

    • blastdoor
    • 13 years ago

    Two reasons to buy an iPod Touch instead of an iPhone —

    (1) you need to use Verizon
    (2) you don’t want the phone, but you would like the video, music, apps, and occasional wifi web access. If you don’t want the phone, then the iPhone is way more expensive when you factor in the monthly cell phone bill.

    • Thresher
    • 13 years ago

    Why buy an iPod Touch when you can get a comparable iPhone for $100 less (subsidized)? I think the real problem is that the iPhone cannibalizes iPod Touch sales.

    Another thing….while I do think the touch is superior to its competition in most regards, if you look at players that have similar functionality (but not the app store), the iPod Touch carries a pretty stiff premium.

    One thing that did surprise me is the growth in Mac sales. I figured people would be a little more willing to part with a few hundred dollars in this economy rather than $1000+.

    • End User
    • 13 years ago

    Apple laptop sales are up 25%. The laptop hunter ads are a bust.

    • Decelerate
    • 13 years ago

    RDF or not, Steve Jobs knows his business

    • MadManOriginal
    • 13 years ago

    Up by ~4% YOY depending on rounding. God can’t you just take it as an approximation? And laptop hunter ads when looking solely at Apple sales numbers mean nothing, even if they have gained market share your correlation=causation statement would be inappropriate. A small YOY or larger sequential increase could also be due to price cuts which is more directly correlatable to laptop hunter ads since that’s pretty much their entire message. *Actually if this is to be believed Apple is bothered by the laptop hunter ads: §[<http://www.dailytech.com/Apple+Begs+for+Mercy+Asks+Microsoft+to+Stop+Airing+Laptop+Hunter+Ads/article15708.htm<]§

    • dpaus
    • 13 years ago

    l[http://ca.news.yahoo.com/s/capress/090722/world/as_china_iphone_suicide<]§ To clarify, the young man in question was not an Apple employee, and Apple has expressed regrets and concerns over the incident, but it shows the price that Apple's extreme security requirements can cost in some cultures. This is the worst example yet of the implications/fall-out of the Apple cult.

    • TheShadowself
    • 13 years ago

    The year over year numbers are up. This does not take into account the fact that the new laptops were only available (and some in very constrained quantities) for less than a third of that quarter. Historically, once the Apple rumor mill gets going about “new” Macs the buyers tend to put off buying a new Mac for a short while. This would point to a likely *decrease* in laptop sales pending the newer models, which, as I mentioned already, were constrained for several models for the first few weeks. The fact that the sales were *not* off and actually trended up slightly year over year (and quarter over quarter) implies to me that the laptop hunter ads are not working.

    • MadManOriginal
    • 13 years ago

    I was looking at YOY. It still doesn’t answer the market share question. But whatever, Apple is Apple and there’s a sucker born every minute 😉

    • Scrotos
    • 13 years ago

    Mac shipments trended up 17% from last quarter, that’s “flat”? It’s even up from a year ago in the same quarter. Since the last quarter is when the laptop hunter ads really hit, I think it’s a proper assessment.

    Besides, higher-paid people than me have already come to that type of conclusion:

    §[<http://www.techreport.com/discussions.x/17152<]§

    • End User
    • 13 years ago

    I’m not surprised, or worried, that iPod sales are declining. iPhone sales are eating into “Classic” iPod sales (as per Apple’s forecast). iPod Touch sales are up by 130%.

    I have not bought an iPod in the past 3 years. My iPhone has become my primary music device (3G and now 3GS).

    • thecoldanddarkone
    • 13 years ago

    Thank you sir. I was just curious.

    • MadManOriginal
    • 13 years ago

    Why? Mac sales are essentially flat and that’s what the laptop hunter ads target, I don’t know if one would expect to see a drop or not due to them. I didn’t dig any further to see a breakdown between desktop and laptop sales. If the numbers showed growth in market share then what you’re saying would make sense.

    Apple is largely about iStuff these days and not Macs.

    • blastdoor
    • 13 years ago

    This is another dark day for apple haters. It looks like the laptop hunter ads were not as successful as they had hoped.

    • blastdoor
    • 13 years ago

    A couple thoughts:

    1. The Touch was not updated, the iPhone was. It’s a no brainer that the Touch will be updated in the next few months, so Touch sales may be depressed until then.

    2. The overall iPod number includes both the Touch and other models, and the Touch is really in a totally different category. The market might be saturated for the iPod Classic, nano, and shuffle, but I doubt it’s saturated for the Touch. So we’ll probably see the total iPod number stagnate for a while, but underneath the surface there will be a shift away from the older models and towards the (higher margin) Touch.

    • jdaven
    • 13 years ago

    Of course! Why didn’t I think of that?!

    • jdaven
    • 13 years ago
    • Kurotetsu
    • 13 years ago

    I’ve noticed on several signatures in the Head-Fi.org forums that people are using their iPhones as their digital audio player. It could be that people just don’t see the point in getting a dedicated DAP when they can get that plus a phone (on top of everything else the iPhone does).

    • thecoldanddarkone
    • 13 years ago

    Do they have anything on how they did in individual markets?

    • adisor19
    • 13 years ago

    Obviously.

    • adisor19
    • 13 years ago

    Comments anyone ? I’ll start.

    I am surprised at the slowdown in iPod sales. The premise that pple decided to buy iPhones instead of iPods is somewhat plausible but i’m not sure it explains what’s going on here.. Apple has been pushing the iPod touh like mad on TV ads and elsewhere and yet it sold this bad compared to the iPhone.. is this a sign that the market is finally getting saturated ?

    Adi

    • pogsnet
    • 13 years ago

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