An early view of Apple’s 3Q results.

Well, Apple’s press release for 3Q results is out, and it mentions no specific iPhone sales numbers:

““We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO. “iPhone is off to a great start—we hope to sell our one-millionth iPhone by the end of its first full quarter of sales—and our new product pipeline is very strong.””

The numbers are amazing. Earnings per diluted share of $0.92 blows past any estimate I saw (most were in the .70-.75 range). Selling 1.764M Macs with no new models (just refreshed laptop models) and no seasonal trend this quarter. No wonder Apple felt they could wait to introduce new iMacs! Same with iPods; 9.815M sold and the top of the line hasn’t been changed in nearly two years.Not sure what to make of no specific iPhone numbers. In terms of these results it’s irrelevant because 30 hours of sales (only 1/24 of which they recognize as revenue anyway) would have zero impact. However, for analysts who thought as many as 700,000 were sold in the first weekend, learning that Apple’s goal is 1M by the end of September may not make them happy.I’m sure more details will come in from the conference call. We’ll see what’s reported then.[UPDATE:] Macworld is reporting the following from the earnings call:

“Apple only sold iPhones during the final 30 hours of the quarter … but Apple CFO Peter Oppenheimer revealed that the company sold 270,000 iPhones through its stores and AT&T stores during those 30 hours.”

That looks pretty darn good to me. I wonder what they did on Sunday (7/1)? Either way, that’s a stellar product debut. We also get this:

“Cook said that based on the demand the company has seen thus far, Apple is confident it will sell 10 million iPhones by the end of 2008.”

Great 3Q numbers exceeding expectations, over a quarter million iPhones sold in the first 30 hours (the only hours in this quarter), and a vote of confidence they they’ll hit their published iPhone targets. What more could you want? Still, I’m sure some analysts will wail…

5 thoughts on “An early view of Apple’s 3Q results.

  1. Oppenheimer revealed that the company sold 270,000 iPhones through its stores and AT&T stores during those 30 hours.

    I’m comparing apples and oranges but this reminds me of the Wii. Nintendo sold 325,000 units across Europe in its first two days of sale. I don’t know how many retail store fronts they had in Europe, with ~160 U.S.-based Apple retail stores and roughly 1840 AT&T wireless stores, the iPhone had 2,000 store fronts in the U.S. (about 135 iPhones sold per store in 30 hours).

  2. I’m aware of how the iPhone revenue is recognized. In the article I state: “(only 1/24 of which they recognize as revenue anyway)”.

    Since it’s spread out over two years they recognized only $5M in 3Q for the iPhone.

  3. Make sure that you realize that the accounting for iPhones sales is also done over a two year life span. For instance Apple may have only reflected $100 in revenue from each iPhone sold. I think a few websites have mentioned and explained why Apple is doing this.

  4. Market Watch declared that 270,000 iPhones were sold in the first two days after it’s release. Steve Jobs said that he expects to have sold the one-millionth iPhone in the next quarter, plus high iPods and an incredible rise in Mac sales! Absolutely amazing!.

    At one point, after trading hours, Apple hit a high of $151 dollars before settling down to $150.18. Come tomorrow, when the market opens, you can expect even more upside. At $150 Apple should have surpassed HP this evening in market cap. Only Google, IBM and Microsoft have bigger caps, but probably not for much longer!

    Some officials are now confidently predicting that Apple may become the first company, either in history or on the planet, to surpass the one TRILLION dollar market cap!

    Wow, way to go Apple!


  5. Apple sure has done a marvelous job of over-delivering when it comes to financials. We are a Mac-only family, including an 8GB iPhone purchased on the 29th at Apple’s La Cantera store in San Antonio. Everyone who has seen our iPhone oohs and aahs over it, especially when we swipe photos and the iPhone rotates its orientation. I don’t know why that is so impressive, but it is nonetheless.

    Just as OS X is built upon a strong foundation, Apple itself is built upon an impressive array of products, and we don’t even know what’s in the future–well, we sorta do, but what the hey! Plus, Apple knows how to do retail, in case no one has noticed. Every time we visit the store in La Cantera, there are hordes of people, no matter what day or time we visit. I had an errand to run last Saturday and dropped by the Apple Store just to see how things looked and counted at least 50 people, who were all over the store. Sure, there were a lot of folks looking over iPhones, but what impressed me more were the number of people looking at Macs. The other retailers in the area must be very envious of what Apple is doing.

    Tom, I sure do enjoy your site. Good job and thanks for your frequent updates and articles.

    Arnold Ziffel

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