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Record iPhone Sales Propel Apple Q4 Results

19 Oct, 2009 By: Erik Gruenwedel

Record sales of the iPhone 3G mobile phone contributed to Apple Inc. posting fourth-quarter (ended Sept. 26) net income of $1.67 billion, up nearly 47% from net income of $1.14 billion during the prior-year period.

Cupertino, Calif.-based Apple said it sold 7.4 million iPhones in the quarter, which represented a 7% increase in units from the same period last year (it didn’t sell 3G units in 2008). The popular cell phone generated $4.5 billion in revenue during the current period.

The company said it had more than $12.3 billion in combined deferred revenue accumulated (based on a 24-month lifecycle) for the iPhone and Apple TV. Changes in accounting practices allow Apple to declare the revenue immediately, which the company has heretofore declined to do.

In a call with analysts, Apple CFO Peter Oppenheimer said the Apple App store had generated more than 85,000 applications, which he said “dwarfed” the nearest competitor.

“It shows there is an appetite from consumers for Apple technology,” Oppenheimer said.

The company sold more than 3 million Macintosh computers, which represented a 17% increase from last year. Apple sold 10.2 million iPods, which was 8% less than last year.

Quarterly revenue increased 25% to $9.9 billion, which exceeded projections by $700 million.

Apple opened 26 new Apple Stores and remodeled 70 others in the quarter. It opened its first two stores in France.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," CEO Steve Jobs said in a statement. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

The results sent Apple shares to a record high of $204, eclipsing the previous record share price of $202 set in 2007.

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