Apple Profit More Than Doubles as IPhone Demand Fuels Sales

Apple Inc. had reported that its quarterly profit has catapulted with the holiday purchases helping the record to go higher causing rival companies to have a bad year report.

Apple’s Fiscal first quarter profit surged to $13.1 billion (or $13.87 a share), Apple said today in a statement. Apple’s sales rose from 73 percent to $46.3 billion. Analysts that Bloomberg surveyed on average estimated profit of $10.14 per share on sales of $39 billion. A per-share profit for the quarter was even more than the amount Apple earned in any fiscal year before 2010.

Overall, Apple sold 37 million iPhones, 17.34 million up from the previous record of 20.34 million. Customers instantly buy up the iPhone 4S that went on sale in October last year – which is just a week after the death of Apple’s co-founder Steve Jobs.

That result break HP’s record of topping the company on all-time record – Apple toppled Hewlett-Packard Co.’s quarterly revenue

“Those numbers are just unimaginable,” said Michael Obuchowski, chief investment officer at First Empire Asset Management, which has $4 billion under management, including Apple shares. “It’s still an extremely well-managed company and they are showing that the product pipeline is sufficient even now to generate growth rates that are unrivaled.”

Apple shares at the floor of the New York Stock Exchange soared as much as 12 percent to $468.95 in an extended trading, exceeding their past record closing price of $429.11 on January 18, 2012. Even business week has something to say about Apple’s stock, “the stock, up 25 percent in the past 12 months, had closed at $420.41 in New York today before the report.”

Higher Forecasts

However, Apple is still looking ahead to results of the second quarter, with aim of getting more.

Overall, Apple has sold 15.4 million iPads, exceeding the 13.5 million proposed by analysts. Apple iPhone sales on an average were forecasted to reach 30.2 million.

“Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline,” Apple Chief Executive Officer Tim Cook said in the statement.

Mobile versus PCs

In the meantime, the total number of rivals for Apple are in confusion because of lack of sales for their products. It now shows that many people are going for sleek design smartphones instead of the PC’s and Apple has already dominated that area. Even some other companies that have engaged in production of smartphones have lost woefully, companies like HTC Corp. and Motorola Mobility Holdings Corp. – two of the biggest companies whose devices run Google Inc.’s Android operating system, have disappointed investors with recent quarter’s reports.

Research In Motion Ltd, RIM which is the maker of BlackBerry ProBook and other Blackberry devices which have lost 90 percent of its market since last four years have replaced its co-CEOs this week in move to make changes to the company.

Apple’s ‘Own Tune’

Brian Marshall who works as an analyst at ISI Group in San Francisco said “everybody else is losing market share if they compete against Apple,” “They are dancing to their own tune,” he continued.

[More from Business Week]

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