Summary
Apple Inc. reported robust financial performance for the fiscal third quarter and first nine months ended June 28, 2008. Net sales grew significantly year-over-year, driven by strong demand across its product lines, particularly Macintosh computers and iPods. The company's expansion into new product categories like the iPhone also contributed to impressive revenue growth. Profitability remained strong, with net income showing a substantial increase. The company continues to invest in research and development to maintain its innovation leadership. Apple's balance sheet reflects a healthy liquidity position with substantial cash and short-term investments, indicating a strong capacity to fund operations and strategic initiatives.
Financial Highlights
24 data pointsBeta
Financial Statements
Beta
| Revenue | $7.46B |
| Cost of Revenue | $4.86B |
| Gross Profit | $2.60B |
| R&D Expenses | $292.00M |
| SG&A Expenses | $916.00M |
| Operating Expenses | $1.21B |
| Operating Income | $1.39B |
| Net Income | $1.07B |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 24.74B |
| Shares Outstanding (Diluted) | 25.29B |
Key Highlights
- 1Net sales increased by 38% year-over-year for both the third quarter ($7.46 billion) and the first nine months ($24.58 billion) of fiscal 2008.
- 2Net income for the third quarter reached $1.07 billion, a significant increase from $818 million in the prior year period.
- 3Macintosh net sales grew by 43% in the third quarter, outperforming the overall personal computer industry growth.
- 4iPod net sales increased by 7% in the third quarter, driven by strong demand for the iPod touch.
- 5iPhone and related products and services generated $419 million in net sales during the third quarter, indicating strong initial market traction.
- 6The company maintained a strong liquidity position with $20.8 billion in cash, cash equivalents, and short-term investments as of June 28, 2008.
- 7Research and Development expenses increased by 40% in the third quarter to support ongoing innovation.
Frequently Asked Questions
Apple reported a strong 38% year-over-year increase in net sales for both the third quarter of fiscal 2008, reaching $7.46 billion, and for the first nine months of fiscal 2008, totaling $24.58 billion.
The iPhone and related products and services generated $419 million in net sales during the third quarter of fiscal 2008, with 717,000 units sold. This indicates a positive initial market reception following its expansion beyond the U.S.
Apple anticipates its gross margin percentage to continue decreasing in future periods compared to 2007 and the first three quarters of 2008, projecting around 31.5% for Q4 2008 and 30% for 2009. This is attributed to product transitions, pricing strategies on new products, potential increases in component costs, and higher logistics expenses.
Apple maintained a substantial liquidity position, with $20.8 billion in cash, cash equivalents, and short-term investments as of June 28, 2008. This increase was primarily funded by operating activities, stock issuances, and tax benefits. The company believes these resources are sufficient to meet its working capital needs, capital expenditures, and other liquidity requirements for the next 12 months.