Apple Q2 2010 earnings, Mac sales up 33% and iPhone up 131%

Apple announced its financial results on Tuesday for the second quarter of 2010 ending March 27.

Amongst the announcements was the big news that Apple's profits had risen nearly 90 percent to $3.07 billion during a record non-holiday quarter. Apple said it had sold 2.94 million Macs during the quarter, an increase of 33 percent from the quarter last year. The company also sold 8.75 million iPhones during the quarter, a 131 percent increase from the quarter last year. iPod sales dipped by one percent indicating that consumers are slowly moving to all in one devices such as the iPhone.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Steve Jobs, Apple’s CEO. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

Apple launched its iPad tablet computer earlier this month and sold 300,000 units on the first day of sales. However, the launch was not perfect by Apple's standards. Users began complaining about wi-fi issues with the device and Apple responded. Apple has also delayed the international release of the iPad to late May, citing a strong demand for units in the U.S. The iPad has managed to grab 0.04% of the global browser market share since its launch. Apple's 3G version of the iPad goes on sale on April 30 in the U.S.

Apple's new iPhone, dubbed the "iPhone HD" by many, saw the light of day this week after an Apple engineer lost the device in a bar. Technology blog Gizmodo posted a full hands on with the prototype device. Apple is expected to launch the 4th generation iPhone in June this year.

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Well, I have a Mac (a 2007 C2D Mini), and waited for Apple to update their Macs to more reasonable levels (I was hoping for a Core 2010 CPU and Radeon HD 5000-series GPU, either in the iMac or MBP, and got tired of waiting).

Upgraded my PC in March instead (Core i5-750, Radeon 5770, Blu-ray), and couldn't be happier. I like Snow Leopard, it's pretty OK (there's some glitches from upgrading from Leopard), but Apple priced me out honestly. I would've spent about $1200-1500 on a new Mac, but I'm not buying some old C2D-based system, and I didn't have 2 grand to get the i5 iMac.

As for Windows vs OSX, that's like a religious debate - both have their merits and drawbacks.

Wow...really? The Apple trolls need to be trolling harder, then. Let's pick it up guys! What's your war song? "I hate Apple, yes I do! Whoever buys Apple is a fool!"

Can't let THIS happen again.... must....type....louder.....

That's good for Apple. I'd use OS X if it were put in front of me but I'd never go out and buy a Mac on my own over Windows. If the iPhone/iPad/iPod Touch and the app store is any indication I can see Steve Jobs exerting more control over OS X in the future and that's a system I can't be comfortable buying into.

roadwarrior said,
Well then you should avoid Microsoft's products as well, because with Windows Phone 7 and the Zune, they are following Apple's lead.

How is that?

roadwarrior said,
Well then you should avoid Microsoft's products as well, because with Windows Phone 7 and the Zune, they are following Apple's lead.

I guess someone doesn't know Windows has had a mobile OS for much longer than the iPhone has even existed. But as with the tablet, mobile media player, "office" productivity suite, and pretty much everything else, Apple is the follower but likes to call itself the inventor.

Edited by C_Guy, Apr 21 2010, 2:35pm :

C_Guy said,

I guess someone doesn't know Windows has had a mobile OS for much longer than the iPhone has even existed.

Learn to read what I wrote. I specifically said Windows Phone 7. I'm well aware of previous Windows Mobile releases since I've owned a number of devices using them. With WP7 (and the Zune) though, Microsoft is taking an approach much more like that of the iPhone. The development model for those devices is much less open than that of previous Windows Mobile releases.

"Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product"
I think it's more like everyone knows how expensive they are and the only ones to buy them are the sheep

speedstr3789 said,
"Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product"
I think it's more like everyone knows how expensive they are and the only ones to buy them are the sheep

I've owned many Windows laptops, and the best laptop I've ever owned for build quality and style is my Macbook Pro, and yes i've spent equivalent amounts on Windows laptops too. I've dropped my Macbook Pro from a significant height (while running), and it suffered absolutely no damage, not even case damage. My old laptop would be bust if I did that.

speedstr3789 said,
I think it's more like everyone knows how expensive they are and the only ones to buy them are the sheep

Why is it that around here, people only call Apple customers "sheep", when more often than not, it is the masses who buy Windows PCs that are blindly following the crowd? Do you honestly think that the millions of people who buy Windows PCs because it's what they are used to from work, or because its what their friends have, or simply because that's the only thing available at their local Walmart are any less sheeplike? At least the people who buy Macs are making a concious decision to buy something outside the "norm".

speedstr3789 said,
"Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product"
I think it's more like everyone knows how expensive they are and the only ones to buy them are the sheep

So... you're calling an IT professional a sheep? Honestly, I bought a Mac because I got so tired of dealing with issues of Windows at work and I didn't want to deal with those issues at home. I fell in love with Mac OS from that point on, and refused to buy another Windows laptop. Unfortunately, the graphics card in my MacBook Pro failed (while at work, so they paid for a new laptop), so I had to buy a Windows PC since they didn't have an account with Apple. I wish I had saved some money and gotten another Mac... I've had this thing for one day, and while it's fast, I hate it.

speedstr3789 said,
"Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product"
I think it's more like everyone knows how expensive they are and the only ones to buy them are the sheep

So sheep are people who like great products? While my PCs are all Windows, there is no denying the iPhone is a category killer that no one has topped yet and the iPad is pretty sweet. It may not suit your needs, but clearly the public at large likes the design and the features enough to overlook the flaws.

roadwarrior said,

Why is it that around here, people only call Apple customers "sheep", when more often than not, it is the masses who buy Windows PCs that are blindly following the crowd? Do you honestly think that the millions of people who buy Windows PCs because it's what they are used to from work, or because its what their friends have, or simply because that's the only thing available at their local Walmart are any less sheeplike? At least the people who buy Macs are making a concious decision to buy something outside the "norm".

Totally agreed.

+1

roadwarrior said,

Why is it that around here, people only call Apple customers "sheep", when more often than not, it is the masses who buy Windows PCs that are blindly following the crowd? Do you honestly think that the millions of people who buy Windows PCs because it's what they are used to from work, or because its what their friends have, or simply because that's the only thing available at their local Walmart are any less sheeplike? At least the people who buy Macs are making a concious decision to buy something outside the "norm".

^This +1.

Edited by Damian, Apr 21 2010, 1:37pm :

roadwarrior said,

Why is it that around here, people only call Apple customers "sheep", when more often than not, it is the masses who buy Windows PCs that are blindly following the crowd? Do you honestly think that the millions of people who buy Windows PCs because it's what they are used to from work, or because its what their friends have, or simply because that's the only thing available at their local Walmart are any less sheeplike? At least the people who buy Macs are making a concious decision to buy something outside the "norm".

Exactly! The true sheep here are people buying Windows PC's at Walmart.

I never got this argument. If they were sheep, they sure as hell wouldn't go out of their way, and deep into their pockets, to buy something used by fewer than the Firefox crowd in terms of web browser markets, as comparison.

Why is it so hard for many people here to simply accept that many Apple users have found a great piece of hardware and software that suit their computing needs? It's obviously the only logical reason. No one would buy some overpriced stuff if they didn't like it a lot.

Edited by Northgrove, Apr 21 2010, 1:03pm :

Why? Because for the vast majority of Apple customers it's simply true.

Yes, some PC buys are sheep in the sense that they will only buy what is familiar. But the reason Apple customers are often labeled as sheep is because they buy whatever Steve Jobs tells them to without even considering whether or not they want it or need it. You just don't see that mentality to nearly the same degree outside the realm of Apple.

C_Guy said,
Why? Because for the vast majority of Apple customers it's simply true.

And you know this how? I can back up my statements because I used to work in the electronics department at Walmart, and you wouldn't believe the number of customers there who simply didn't know they had an option when choosing a computer other than a Dell or HP running Windows. Hell, most of them had never even heard of Acer, despite it being one of the largest computer OEMs in the world. At least the people buying Macs know more than those people.

Brendando said,

The sales look pretty healthy.


Yup. I'm not sure how to take those trolls. They have full support from good sales figures, so the argument kind of falls if one is trying to say Jobs is pulling claims out of his butt.

Edited by Northgrove, Apr 21 2010, 1:44pm :

thealexweb said,
With their prices what do you expect?

Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product. And yet, here we are, with record sales for devices which everyone claims no-one will buy because they are too expensive, and then when millions do, claim that the profit is just because the prices are SO expensive. There's flawed logic if I ever saw it.

Brendando said,

Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product. And yet, here we are, with record sales for devices which everyone claims no-one will buy because they are too expensive, and then when millions do, claim that the profit is just because the prices are SO expensive. There's flawed logic if I ever saw it.

+10

Brendando said,

Isn't the other argument that's used that Macs and iPhones are too expensive to buy, and nobody will because the price doesn't justify the product. And yet, here we are, with record sales for devices which everyone claims no-one will buy because they are too expensive, and then when millions do, claim that the profit is just because the prices are SO expensive. There's flawed logic if I ever saw it.

Ummm... Compare that to PC sales which are also on the rise right now. Macs still have a laughable market share... Why is that? Maybe price? IMO the OS is also a factor. It isn't what the fanboys make it out to be.

Edited by ermax, Apr 21 2010, 2:44pm :

ermax said,

Ummm... Compare that to PC sales which are also on the rise right now. Macs still have a laughable market share... Why is that? Maybe price? IMO the OS is also a factor. It isn't what the fanboys make it out to be.

Well since you consider $3.07 billion in profits laughable, you must have more money make more money than that. Can I have some?

REM2000 said,
Thats incredible, i wish i had some apple shares.

I've thought about it a few times, but it's hard to actually do it. The thing is that their shares are valued very high today, and I constantly think it'll start dropping a bit. But they keep showing profits even beyond optimistic expectations, so their stock keep getting more valuable. It's pretty insane actually.