Apple 1st Qtr 2009 stock price
Apple 2Q Net Rises 15% On Strong Sales, Low Costs
By Stephen Pate, NJN Network, Charlottetown, Prince Edward Island, Canada, April 23, 2009 with story from the BBC
Despite the recession, Apple shows that nimble innovators with a plan can increase sales and turn a profit. The Apple iPhone is THE phone to own. According to some users, once you try it, you won’t go back. Apple has also refused to discount its products maintaining higher prices than competitive Intel/Microsoft compturers. It’s a gutsy move that saw some revenues fall but profits remain high.
Paying for the news – The first story I found in researching Apple’s results was the Wall Street Journal. The WSJ provides a headline and synopsis. If you want more they charge. What a silly plan. I Googled “Apple results” and got dozens of free sites. No one pays for news anymore.
BBCApple shrugged off the economic downturn to report a 15% jump in profits for the first three months of the year.
Sales of its iPhone more than doubled from the same quarter one year ago, while iPod sales also grew. However, demand for Macintosh computers dipped.
Net profit rose to $1.21bn (£0.84bn) from $1.05bn in the same quarter a year ago, on sales up 8.7% to $8.16bn.
The results sent the company’s shares 2.5% higher in after-hours trading.
Analysts praised the results, especially given the economic climate, but said it was not necessarily a sign that things were set to improve in the wider market.
“Apple has been one of a few companies where business has been pretty strong throughout this economic downturn,” said Eric Kuby, chief investment officer at Northstar Investment Management.
“It’s good to see that the iPod and the iPhone are humming along.”
But he added that while “any positive earnings surprise is good news” the results were “good for Apple, but not necessarily good for the whole market”.
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