Apple reports $6B in profits, sells 16.24M iPhones and 7.33M iPads

Apple Inc. (AAPL) had another outstanding quarter — this time raking in $6 billion in profit on $26.74 billion in revenues for the period ending Dec. 25, 2010. The company sold more iPhones, Macs and iPads in the three-month period than in any quarter before. Apple sold 16.24 million iPhones and 7.33 million iPads. During an earnings call executives expressed confidence that the company could have sold more of both devices, particularly iPhones, if it have been able to meet the full backlog and demand. More than half of the 19.45 million iPods sold during the quarter were iPod Touch. All told, Apple has sold a cumulative 160 million devices that run on iOS.

iPhone sales jumped 86% from a year ago, which outpaces the average 70% growth rate for the global smart phone market in the same period, according to Apple. With iPod sales on the decline, and concerns about cannibalization raised, COO Tim Cook panned: “If this is cannibalization, it feels pretty good.“ As for the iPhone, Apple confirmed that it no longer has an exclusive deal with any carriers in any country where the iPhone is sold. Now that AT&T Mobility’s (T) exclusive deal for the device has passed, Cook said Apple has a new multi-year non-exclusive deal with the nation’s second-largest carrier. He declined to comment about any plans to bring on new carriers in the United States or elsewhere, but said Apple is always pursuing opportunities for new customers. With Verizon Wireless (VZ) coming on board soon, Cook made it a point to add that iPhone sales have historically jumped in volume within any country once it adds a second carrier to the mix. During the call, Cook was also asked to detail his thoughts about Google Inc.’s (GOOG) Android and the consumerization of enterprise. As expected, Cook talked about what Apple views as the “fragmentation” problem with Android, noting that Apple’s approach delivers a greater customer experience because users don’t have to worry about numerous app stores, OS update methods and multiple payment mechanisms with iOS devices. Finally, Cook said “the consumerization of enterprise is one of the mega-trends that are emerging.” The iPhone continues to gain traction in enterprise, he said, adding that the device is up and running at 88% of the Fortune 100 and 83% of the Fortune 500. The faster adoption rate of new devices and technology at large businesses goes against enterprise’s traditionally slow and more cautious approach, Cook said. In that process, he also applauded forward-looking CIOs for putting a greater importance on the productivity and creativity of each employee rather than forcing every employee to use the same tools for work.

Source: http://www.rcrwireless.com/article/2011011...