Apple Inc. Quarterly Report for Q1 Ended Dec 31, 2011

Summary

Apple Inc. reported a remarkably strong fiscal first quarter ended December 31, 2011, with net sales surging 73% year-over-year to $46.3 billion. This impressive growth was primarily driven by exceptional performance in iPhone and iPad sales, which together accounted for over 70% of total net sales. iPhone sales grew by 133% to $24.4 billion, driven by the launch of the iPhone 4S and expanded distribution. iPad sales also saw robust growth, increasing by 99% to $9.2 billion. Profitability also saw significant improvement, with net income more than doubling to $13.1 billion, resulting in diluted earnings per share of $13.87, up from $6.43 in the prior year period. The company's gross margin expanded to 44.7% from 38.5%, attributed to a favorable product mix and improved cost efficiencies. Apple's strong financial performance demonstrates continued market leadership and robust consumer demand for its flagship products.

Key Highlights

• 1Net sales increased by an impressive 73% to $46.3 billion for the quarter ended December 31, 2011, compared to $26.7 billion in the prior year period.
• 2Net income more than doubled to $13.1 billion ($13.87 diluted EPS) from $6.0 billion ($6.43 diluted EPS) year-over-year.
• 3iPhone sales were a major driver, up 133% to $24.4 billion, representing 53% of total net sales.
• 4iPad sales also showed substantial growth, increasing 99% to $9.2 billion, accounting for 20% of total net sales.
• 5Gross margin improved significantly to 44.7% from 38.5% in the prior year, driven by a favorable product mix.
• 6The company maintained a strong cash position, ending the quarter with $97.6 billion in cash, cash equivalents, and marketable securities.
• 7Mac sales grew 22% year-over-year, while iPod sales declined by 26%.

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