Apple Shares Surge After 50 Percent Jump In Profits

Apple shares have been trading significantly up after the company announced yesterday that it had enjoyed its best quarter ever with its profits increased by 50 percent compared to last year's figures to reach a monumental $2.26 billion.

The company's market capitalisation reached more than $187 billion shortly before mid-day EST as it approaches its 52 week high of $215.59 per share. Early in 2009, at the worst of the recession, Apple shares traded at around $80.

The Cupertino-based company disclosed that it sold more than twice the number of iPhones compared to the fourth quarter of 2008, reaching 8.7 million units. Sales of iPod were down 8 percent to 21 million while 3.36 million Mac computers were sold, a rise of 33 percent.

Overall its quarterly revenues reached $15.68 billion, a third higher than for the same period last year. What's particularly impressive is that every $1 that Apple is bringing in, 14 cents is profit. This is four or five times higher than most Taiwanese technology firms out there.

This prompted Mr Jobs himself to say that "If you annualize our quarterly revenue, it's surprising that Apple is now a $50+ billion company". In comparison, Microsoft revenues reached $58.4 billion for the year ending June 2009 and $60.4 billion in the year before.

Our Comments

Many analysts might deduce that the iPod era is slowly coming to an end although it would be interesting to find out how many iPod Touch were sold. More than 20 million iPod touch have been sold as of September 2009 and normal, lower priced, iPods ought to still command the majority of the sales.

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