Apple has soothed analysts’ concerns about market saturation of Apple devices. Major sales growth has contributed to growth in sales in China.
Apple has reported that it has sold around 35 million iPhones in the first quarter of 2012, almost double compared to sales from a year ago. This has beaten nearly all analysts expectations. Apple’s stock fell around 2 percent at the close of trading but rallied back up 7.1 percent by $40.02 to $600.30 in extended trading.
“They’re delivering the goods much stronger than even the biggest bulls would have thought,” said Brian White, an analyst with Topeka Capital Markets. “It’s Apple fever at its finest.”
Net income for apple was reported to be $11.6 billion almost double that of a year ago. Last year’s net income was $6 billion. Analysts were expecting earnings of $10.07 per share, this again was proved wrong by Apple with share earnings of $12.30 reported for the last quarter.
Revenue was up 59 percent at $39.2 billion, once again fooling analysts who were expecting around $37 billion.
Sales of iPads in contrast, fell below expectations at 11.8 million units sold. However, this is still more than 2.5 times the amount sold a year ago; Apple launched a new model of the iPad in the first quarter. The general belief is that lower than expected sales are due to the lack of supply for the new device. This is due to problems in producing enough “retina displays”, the new high resolution screen included in the newest iPad.
Mac sales were also below expectations, with total sales for the quarter amounting to around 4 million. This is still 7 percent higher than a year ago. In contrast the overall PC market grew by 2 percent.
Debate over the future of PCs and tablets
Windows PC makers are hoping that the new Windows operating system, Windows 8, will aid in boosting sales of Windows PCs. This will also hopefully help in competing on the tablet market as well.
Intel CEO Paul Otellini said last week that he believes that PCs and tablets will eventually be merged into one light device with a keyboard and a touch screen.
In contrast, Apple CEO Tim Cook did not agree with the idea. He said that both devices are very different and will remain separate: both devices should and will play to their own unique strengths.
“You can converge a toaster and a refrigerator, but those things are probably not going to be pleasing to the user,” he said.