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Apple sells 17 million iPads, sees profits rise 21 per cent

Apple has reported sales of 26 million iPhones and 17 million iPads during its most recent quarter.

The company also said during a conference call that it has "amazing new products in our pipeline that we look forward to discussing with you in the future."

Apple fans snatched up 17 million iPads, up 84 per cent from the same time period last year and up considerably from the 11.8 million it sold last quarter.

The iPad is now available in 17 countries, with the iPad having generated revenue of $9.2 billion (£5.9 billion) during the quarter.

Apple CEO Tim Cook wasn't too concerned about the competition. Customers are "not really looking for a tablet; they're looking for an iPad," he said.


On the iPhone front, buyers picked up 26 million iPhones, up 28 per cent from last year but a drop from the 35.1 million it sold in the last quarter.

Apple acknowledged that rumours about the next iPhone have affected sales of the company's current line-up.

"There's a lot of speculation out there," Cook said, when asked to quantify the impact. "It's difficult to sort out, but I'm fairly convinced based on what I've seen that there's an incredible anticipation out there for future products. And as you would expect, given what we've been able to deliver in the past. I think it's a reasonable amount."

Apple said the iPhone is now available through 250 mobile operators in 100 different countries.

Cook declined to "get into specifics" regarding new network additions. "Our role is to make the very best smartphone in the world [and] at the end of the day, the carriers want to provide the customers with what their customers want to buy."

Apple talked up enterprise adoption of the smartphone. The number of iPhones in Fortune 500 companies has more than doubled in the past year, the company said, with companies like PepsiCo deploying thousands of iPhones with in-house apps.

Apple also touted the deployment of Apple devices in education. Sales of the discounted iPad 2 were "particularly strong" in K-12 markets, the company said. Apple also saw its "best ever quarter" for sales of Macs to education; Rutherford County, North Carolina, for example, purchased 6,000 MacBook Airs.

Apple moved 6.8 million iPods over the past few months, down slightly year-on-year. Interestingly, the company said it raked in more revenue from iTunes sales than iPod sales during the quarter.

The company also sold 1.3 million Apple TV units during the quarter, which was up 170 per cent from last year. Cook said the device is still a "hobby" for Apple, but the product has its champions within Apple, and "we think it will lead us somewhere," Cook said.


Apple said it sold four million Macs in the quarter, the same as last quarter.

Cook said the likely reason for the lack of a bump in Mac sales is that Apple only just released its revamped Mac line-up. The new PCs, including the MacBook Pro with Retina display, made their debut with only three weeks left in the quarter. In comparison, the last Mac revamp happened in February, allowing Apple to ring up more sales during that quarter, Cook said.

In terms of the backlog on the Retina display MacBook Pro, Cook said "we still have not caught up with demand yet but anticipate doing so next month."

Mountain Lion

Apple also revealed that it will release the next version of its OS, dubbed Mountain Lion, today (25 July). It will sell for £13.99 via the Mac App Store or as a free download for recent Mac buyers.

Apple surpassed $5.5 billion (£3.5 billion) in developer payouts during the quarter, while 150 million people are now using iCloud, Apple said.

On the finance front, Apple reported revenue of $35 billion (£22.6 billion) and profit of $8.8 billion (£5.7 billion), up just 21 per cent. Earnings were not as strong as those reported in April, when Apple saw profits nearly double from the year before.

International sales made up 62 per cent of the quarter's revenue, Apple said.

Apple now has $117.2 billion (£75.6 billion) in cash, up from $110 billion (£70.9 billion) during the previous quarter.