Apple Inc. Quarterly Report for Q2 Ended Mar 28, 2009

Summary

Apple Inc. reported strong financial results for the quarter ending March 28, 2009, demonstrating resilience and growth despite the prevailing economic climate. Net sales increased by 9% year-over-year, reaching $8.16 billion, driven significantly by a remarkable 302% surge in iPhone revenue, underscoring its growing importance as a key revenue driver. This robust top-line performance translated into a healthy increase in net income, which rose to $1.205 billion from $1.045 billion in the prior year period, leading to a diluted earnings per share of $1.33. The company's operational efficiency was also evident in its improved gross margin, which increased to 36.4% from 32.9% in the prior year, reflecting effective cost management and favorable component costs. While Mac sales experienced a decline in net sales and unit volume, this was more than offset by the stellar performance of the iPhone and continued strength in iTunes Store sales. Apple's balance sheet remains exceptionally strong, with a substantial increase in cash, cash equivalents, and marketable securities to $28.9 billion, providing significant financial flexibility.

Key Highlights

• 1Net sales increased by 9% year-over-year to $8.16 billion.
• 2Net income rose to $1.205 billion, a 15% increase from the prior year's $1.045 billion.
• 3Diluted earnings per share grew to $1.33, up from $1.16 in the comparable prior year period.
• 4Gross margin improved significantly to 36.4% from 32.9% in the prior year quarter.
• 5iPhone revenue saw a dramatic increase of 302% year-over-year, highlighting its growing market impact.
• 6Total cash, cash equivalents, and marketable securities increased to $28.9 billion, demonstrating strong liquidity.
• 7Mac sales experienced a decline in net sales (-16%) and units (-3%), indicating a challenging segment during this period.

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