iPad and iPhone Sales Boost Apple Profits
Published: 19 January 2011 By MoneyHighStreet Staff Leave a Comment
Apple had better than expected sales of iPhones and iPads in the lead up to Christmas, giving the company record profit for the period.
The iPad was one of the most popular Christmas gifts and Apple said it sold 7.3 million of the gadgets, some 1 million more than analysts had been predicting.
Over 16 million iPhones were also sold.
Interestingly, there was a drop in the number of iPods sold, down to just under 20 million. That said the dip in sales was offset by an increase in the average amount people spent on the music devices.
Apple posted record profit of $6bn (£3.7bn), compared to $3.38bn (£2.1bn) in the same period last year.
Steve Jobs, CEO of Apple also announced this week than he is taking his third medical leave from the company. No information was provided about was wrong. It was simply stated that Jobs would remain CEO and he would be involved in the major strategic decisions for the company.
Investor’s didn’t react as strongly to the news on Jobs as they did when he previously announced health issues. The Apple share price initially fell to $340.65 but regained some after the news of the strong iPad and iPhone sales. At the time of writing the share price was $344.35.
MoneyHighStreet.com comment: Huge sales of both the iPad and iPhone are predicted for this year, let alone the rest of the Apple stock of Macbooks, iMacs and iPods. Clearly the news of Jobs’ latest health scare is of concern, however we, as indeed other analysts, believe that the Apple share price will recover with such strong sale predictions. We of course certainly hope that their CEO recovers quickly and wish him well.
Of course the value of investments and the associated income can go down as well as up.
Investors should make their own judgements on shares, if in doubt seek independent financial advice.