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Wednesday, July 20, 2011

Apple smashes Street views, revenue soars

From Reuters.



On Tuesday July 19, 2011, 5:03 pm
SAN FRANCISCO (Reuters) - Apple Inc's quarterly revenue again crushed Wall Street expectations, driven by blockbuster sales of its hot iPhones and iPads.
Its flagship products all exceeded forecasts. It sold 20.34 million iPhones during the quarter along with 9.25 million iPads and 3.95 million Mac computers. Gross margin for the quarter came to 41.7 percent.
The stellar results came as concern over iPad 2 supply constraints eased. The company is entering the second half of 2011 on a roll. In coming months, Apple is expected to launch a new iPhone, which is likely to give the world's most valuable technology company another revenue boost.
Apple, notorious for its conservative forecasts, estimated earnings for the September quarter of $5.50 a share on revenue of $25 billion, which came in below analysts' average estimate of $6.45 a share on revenue of $27.7 billion.
The Cupertino, California company said on Tuesday its fiscal third-quarter revenue rose to $28.57 billion, trouncing the average analyst estimate of $24.99 billion, according to Thomson Reuters I/B/E/S.
Shares of the world's most valuable technology company leapt 6.1 percent to about $400 after a brief halt after-hours. They had fallen into a limbo after Chief Executive Steve Jobs took leave last January for unspecified medical reasons.
The stock price has gained nearly 19 percent since hitting a year low on June 20. The rally has added $54.8 billion to Apple's market cap since then.
On Tuesday, Jobs' health again came to the forefront after the Wall Street Journal reported that several Apple board members had discussed a successor to the Silicon Valley icon, and talked it over with at least one head of a high-profile tech company.
Succession planning at the world's most valuable technology company has been a hot topic since Jobs announced he was taking medical leave for unknown reasons, with many not expecting him to return to lead the company he founded in 1976.
The fate of Apple is tied to how the iPhone and iPad maker handles the eventual departure of its iconic chief. Chief Operating Officer Tim Cook is overseeing day-to-day operations at the company.
Shareholders representing almost a third of Apple's stock voted in February in favor of a proposal to disclose a succession plan for Jobs, underscoring worries over who will replace the visionary leader.
(Additional reporting by Edwin Chan in Los Angeles; Editing by Richard Chang)

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