Business

Chris Cantell Discusses Business: Apple's profit up 26 percent on iPhone boom
by Magdalena Rosova

A profit of Apple Inc. incredibly jumped by 26 percent in the fiscal quarter. The reason why is successful sale of the newest iPhone.

In spite of great sale, which sent Apple´s shares soaring, the company is circumspect in its predictions, because of the uncertain economic situation.

Apple´s profit, for the three months ended in September 27, rose to $1.14 billion from $904 million in the same period last year.

According to a Thomson Reuters poll analysts had expected the company to sell Macintosh computers, iPods, iPhones and other products for a profit of $1.11 per share. The achieved profit is $1.26 per share.

However, Chief Executive Steve Jobs is afraid that economic weakness will negatively effect the Apple´s business.

Jobs said their customers would put off buying a new computer rather than buy a different brand of computer with a lower price. Therefore Apple should invest more in research and development.

Apple sold a stunning 6.9 million of iPhone 3Gs in the quarter. The iPhone was launched in July 11 and is available in more than 50 countries. It did not take a long time and iPhone shockingly overtook the leading Black berry from Research in Motion.

For the current quarter, ending in December, Peter Oppenheimer, Chief Financial Officer, gave a prudent prediction, saying Apple expect to earn $1.06 to $1.35 per share on sales from $9 billion to $10 billion.

Analyst Gene Munster called the prediction “comical,” saying that the company cannot ignore the explosive sale of iPhone 3G. Analysts expect Apple to have a profit of $1.65 per share on sales of $10.57 billion.



related story: http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=a5OSryaKaCu0

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova

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posted by Blog TechSource @ 6:13 AM