Apple boosts Q4 profit 46% on record iPhone sales

Dylan Bushell-Embling
20 Oct 2009
Daily News

Record iPhone sales helped stimulate another quarter of strong growth at Apple, with the company boosting net profit 46% to $1.66 billion.

In its most profitable quarter ever, Apple increased revenue 25% to $9.87 billion and boosted gross margin 1.9 points to 36.6%.

During what COO Tim Cook called the “quarter of the portable,” iPhone sales rose 7% year-on-year to 7.4 million units. Mac sales increased 17% to 3.05 million units, driven by strong demand for notebooks. The release of Apple's Snow Leopard OS also contributed, Cook said.

The result beat analysts' expectations of income of $1.3 billion and sales of $9.2 billion.

“For the full year, we grew revenue by 12% and net income by 18% in extraordinarily challenging times,” CFO Peter Oppenheimer said. Annual income rose to $5.70 billion, while revenue reached $36.54 billion.

Apple expects its strong growth to continue into the year ahead, and is predicting revenue of $11.3 billion to $11.6 billion for the first quarter of its 2010 financial year. CEO Steve Jobs said new products were in the pipeline for 2010, but did not elaborate.

Oppenheimer expects a further boost from the launch of iPhone in China, the world's largest telecom market by customers, at the end of this month. International sales accounted for around 46% of Apple's Q4 revenue.

Apple stock jumped 6.3% to nearly $202 in after-hours trading on Nasdaq.

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