Summary
Apple Inc. reported strong financial performance for the quarter and nine months ended June 27, 2009, demonstrating robust revenue growth and profitability. Net sales increased by 12% year-over-year for the quarter and 8% for the nine-month period, driven significantly by the continued success of the iPhone and growth in the iTunes Store. The company maintained healthy gross margins, improving to 36.3% in the quarter, reflecting effective cost management and strong product demand, despite some headwinds in Mac and iPod sales. The balance sheet shows a solid financial position with a significant increase in cash and marketable securities, providing ample liquidity. While research and development and selling, general, and administrative expenses saw increases, they were managed effectively in relation to revenue growth. The company's focus on innovation and expansion, particularly in its retail segment and the burgeoning iPhone market, positions it well for continued growth, though it faces competitive pressures and economic uncertainties.
Financial Highlights
44 data points| Revenue | $9.73B |
| Cost of Revenue | $5.75B |
| Gross Profit | $3.98B |
| R&D Expenses | $341.00M |
| SG&A Expenses | $1.01B |
| Operating Expenses | $1.35B |
| Operating Income | $2.63B |
| Net Income | $1.83B |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 25.02B |
| Shares Outstanding (Diluted) | 25.46B |
Key Highlights
- 1Net sales increased by 12% to $8.34 billion for the third quarter of fiscal 2009 compared to $7.46 billion in the prior year's quarter, and by 8% to $26.67 billion for the first nine months.
- 2iPhone revenue and sales of related products and services saw explosive growth, with unit sales increasing by 626% in the third quarter and 182% for the nine-month period year-over-year.
- 3Gross margin percentage improved to 36.3% for the third quarter of 2009 from 34.8% in the same period of 2008, driven by lower costs and a stronger U.S. dollar.
- 4Cash, cash equivalents, and marketable securities increased significantly to $31.1 billion as of June 27, 2009, up from $24.5 billion at the end of fiscal 2008.
- 5Diluted earnings per share were $1.35 for the third quarter of 2009, an increase from $1.19 in the prior year's quarter.
- 6Mac net sales declined 8% year-over-year for the quarter despite a 4% increase in Mac unit sales, indicating a decrease in average selling prices.
- 7iPod net sales decreased 11% for the quarter, with unit sales also declining by 7%, reflecting market shifts and potentially increased competition.