Apple's Earnings up 50%
Apple's earnings hit record highs this holiday season as we are quickly approaching the Wednesday Apple event.
Apple Inc. had its most profitable quarter ever over the holidays, as huge sales of the iPhone and Macintosh computers led to a nearly 50 percent jump in net income.
The company offered no clues about what it plans to unveil Wednesday in San Francisco, although analysts expect the new product to be a tablet-style computer. CEO Steve Jobs indicated that investors should expect a significant event.
“The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about,” Jobs said in a statement.
Apple also offered a profit and revenue forecast above Wall Street forecasts.
The iPhone’s rollout in several major new markets, including China and South Korea, helped Apple double sales of the phone. Apple also got a boost because now it puts iPhone revenue and profit on its books when the gadget is sold, rather than deferring those results over the presumed life of the device.
Apple said Monday it earned $3.4 billion, or $3.67 per share, in the latest quarter, which ended Dec. 26. In the same period of 2008, had the same accounting standards been in place, it would have had net income of $2.3 billion, or $2.50 per share.
Revenue was $15.7 billion, a 32 percent jump from $11.9 billion in the same period last year.
We’ll bring you up to date on what happens on Wednesday on Tech Talk Live at 8PM that evening.
