IE 11 is not supported. For an optimal experience visit our site on another browser.

Apple 'thrilled' by sales surge, profits blow past estimates

Apple Inc. reported quarterly profits of $1 billion a week for its latest quarter, blowing past Wall Street expectations on robust holiday sales of its iPhones and iPads.
File photo of the Apple Inc. logo hanging inside the newest Apple Store in New York City's Grand Central Station
The Apple Inc. logo hangs inside the newest Apple Store in New York City's Grand Central Station. Apple Inc. coasts into 2012 with a strong wind in its sails, a clutch of envelope-pushing products and a record share price.Mike Segar / REUTERS
/ Source: msnbc.com news services

Story updated 3:50 a.m. ET: The iPhone accounts for more than half Apple's revenue for the first time, the Associated Press reports. Though Apple has other hit products, like MacBooks and the iPad, they can't keep up with the iPhone, whose sales more than doubled over last year from an already high level and accounted for 53 percent of Apple's revenue in the quarter.
Story published 5:00 p.m. ET: Apple Inc. Tuesday reported quarterly profits of $1 billion a week for its latest quarter, blowing past Wall Street expectations on robust holiday sales of its iPhones and iPads.

The consumer electronics giant posted earnings of $13 billion, or $13.87 per share, more than double the $6 billion, or $6.43 per share, a year ago. Analysts polled by FactSet were expecting earnings of $10.04 per share for the fiscal first quarter.

Apple's quarterly revenue of just over $46 billion handily beat the average Wall Street analyst estimate of $39 billion, according to Thomson Reuters I/B/E/S.

“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Tim Cook, Apple’s CEO. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”

Apple says it sold 37 million iPhones in the quarter, double the figure of the previous quarter, refelcting the introduction of the new iPhone 4s.  Apple sold 15 million iPads, compared with 11 million in the previous quarter.

Together iPhones and iPads accounted for more than $33 billion of the company's total $46 billlion in revenue.

"Apple's results were tremendous and the company continues to distance itself from industry peers," said Bill Kreher, an analyst at Edward Jones. "Just the magnitude of the iPhone beat is very impressive."

Apple shares, already trading near record levels, jumped 9 percent in after-hours trading on the earnings news.

"It's a monster quarter," said Colin Gillis, an analyst at BGC Financial. "Their guidance is strong too, it's a holiday quarter. There's just a worldwide demand for Apple products."

"Going into 2012 I expect strength of iPhone, iPod Touch and iPad should carry on into the year. said Hendi Susanto of Gabelli & Co. "Apple still has some tailwind including opening up new retail stores and expanding its distribution channels."