What was Apple's revenue and profitability for the quarter?

For the quarter ended March 27, 2010, Apple reported net sales of $13.5 billion, a 49% increase year-over-year. Net income was $3.07 billion, resulting in diluted earnings per share of $3.33, significantly up from $1.79 in the same period last year.

Which product drove the most significant growth?

The iPhone was the primary driver of growth, with net sales increasing by 124% year-over-year to $5.4 billion, accounting for 40% of the company's total net sales. This growth was attributed to expanded distribution and strong demand, particularly in international markets.

How is Apple's financial position?

Apple maintained a very strong financial position. As of March 27, 2010, the company had $10.02 billion in cash and cash equivalents and $31.67 billion in marketable securities, totaling over $41 billion in liquid assets. This healthy cash position was built through strong operating cash flows.

What is Apple's outlook on gross margins?

Apple anticipated that its gross margin percentage would decrease in future periods compared to the first half of 2010, projecting around 36% for the third quarter of 2010. This expected decline was attributed to the aggressive pricing of the newly introduced iPad, ongoing competitive pricing pressures, and potential increases in component costs.

AAPL 10-Q Quarterly Report Q2 FY2010 — Revenue, Net Income, EPS

Summary

Apple Inc. reported strong financial results for the fiscal second quarter ending March 27, 2010, demonstrating robust year-over-year growth across key metrics. Net sales surged by 49% to $13.5 billion, driven by exceptional performance in the iPhone segment, which saw sales more than double and accounted for a significant portion of total revenue. The company also experienced substantial growth in its Mac and international sales, with Europe and Asia-Pacific regions showing particularly strong increases. Net income more than doubled to $3.1 billion, leading to diluted EPS of $3.33, a significant improvement from the prior year. The company maintained a strong financial position with over $10 billion in cash and cash equivalents and a healthy balance of marketable securities. Investment in research and development continued, reflecting Apple's commitment to innovation. The positive financial trajectory suggests continued market leadership and effective product strategy execution, although the company anticipates gross margin pressure in the near term due to product pricing strategies and new product introductions like the iPad.

Financial Highlights

46 data points

Beta

Revenue

$13.50B

0.4% Gross Margin

Net Income

$3.07B

0.2% Net Margin

EPS (Diluted)

$0.12

Total Assets

$57.06B

Cash & Equivalents

$10.02B

Free Cash Flow

$2.33B

Financial Statements

Beta

Revenue	$13.50B
Cost of Revenue	$7.87B
Gross Profit	$5.63B
R&D Expenses	$426.00M
SG&A Expenses	$1.22B
Operating Expenses	$1.65B
Operating Income	$3.98B
Net Income	$3.07B
EPS (Basic)	$0.12
EPS (Diluted)	$0.12
Shares Outstanding (Basic)	25.41B
Shares Outstanding (Diluted)	25.84B

Key Highlights

1Net sales increased by 49% year-over-year to $13.5 billion for the quarter.
2Net income more than doubled, reaching $3.07 billion, with diluted EPS of $3.33.
3iPhone sales experienced massive growth, up 124% year-over-year, becoming a primary revenue driver (40% of total sales).
4Mac sales increased by 27%, with unit sales up 33%, indicating continued strength in the computer segment.
5International sales surged, particularly in Europe (up 63%) and Asia-Pacific (up 184%), highlighting global demand.
6Apple's cash and cash equivalents nearly doubled, ending the quarter at $10.02 billion, reflecting strong operational cash flow.
7The company introduced the iPad in January 2010, with shipments beginning in April, marking a new product category.

Apple Inc. Quarterly Report for Q2 Ended Mar 27, 2010

Summary

Financial Highlights

Key Highlights

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