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10-QPeriod: Q2 FY2011

Apple Inc. Quarterly Report for Q2 Ended Mar 26, 2011

Filed April 21, 2011For Securities:AAPL

Summary

Apple Inc. reported a strong financial performance for the quarter ended March 26, 2011, with net sales surging by 83% year-over-year to $24.7 billion. This growth was primarily driven by exceptional sales of the iPhone, which accounted for 50% of total net sales in the quarter, and the newly launched iPad, contributing 11% of net sales. Mac sales also showed robust growth of 32%, while iPod sales experienced a decline. The company's profitability remained strong, with net income increasing significantly to $6.0 billion, leading to diluted earnings per share of $6.40. Apple's balance sheet reflects a healthy financial position with total assets growing to $94.9 billion, bolstered by substantial increases in cash and cash equivalents and marketable securities, which collectively reached $65.8 billion. The company continues to invest heavily in research and development, with R&D expenses increasing by 36% year-over-year, underscoring its commitment to innovation. Management expressed confidence in the company's liquidity and ability to meet its obligations over the next 12 months.

Financial Statements
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Key Highlights

  • 1Net sales dramatically increased by 83% year-over-year to $24.7 billion, showcasing strong market demand.
  • 2iPhone sales were a primary growth driver, up 126% and comprising 50% of total net sales in the quarter.
  • 3The newly introduced iPad contributed $2.8 billion in net sales (11% of total), demonstrating rapid market adoption.
  • 4Mac sales grew 32% year-over-year, indicating continued strength in the personal computer segment.
  • 5Net income more than doubled to $6.0 billion, resulting in diluted EPS of $6.40, a significant improvement from the prior year.
  • 6The company maintained a strong liquidity position with $65.8 billion in cash, cash equivalents, and marketable securities.
  • 7Research and Development expenses increased by 36% year-over-year, reflecting a continued focus on innovation and new product development.

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