Mobiles boost Apple profits... and there's more to come

 

Gallery

By Stewart Mitchell

Posted on 25 Jan 2012 at 08:14

Apple has announced yet another set of record-breaking financial results - and promises there are more "amazing products in the pipeline".

Fuelled by burgeoning sales of iPhones and iPads, the company made quarterly revenues of $46.3 billion, with net profit of $13bn.

The high-value of the company's flagship mobile gadgets was underlined by gross margins of 44.7% across the board after Apple sold 37 million iPhones, 15.5m iPads and 5.2m Macs during the quarter.

“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.”

While one might be tempted to conclude they will go on a buying spree, we think that is likely not the case

The figures for iPhones represented a year-on-year increase of 128%, while iPad sales have also more than doubled, with a 111% increase, the company said. The only cloud in its sales figures were a 21% decline in iPod sales over the same period last year.

Cash cache

In a conference call to discuss the results, Apple refused to outline what it planned to do with a near $100bn cash war chest that continues to grow.

The company said it was actively discussing what to do with its embarrassment of riches, but analysts played down the likelihood of the company buying other tech companies, with shareholders likely to benefit.

"While one might be tempted to conclude they will go on a buying spree, we think that is likely not the case," Michael Yoshikami, CEO of YCMNET Advisors, told the Reuters news agency.

"We are looking for Apple to pay a one-time distribution rather than an ongoing dividend."