Apple Says iPhone Off to 'Great Start'
Apple (AAPL) sold 270,000 iPhones in its just completed fiscal third quarter, the company said Wednesday.
The Cupertino, Calif., tech giant recognized $5 million in iPhone revenue in the quarter ended June 30.
"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Steve Jobs, Apple's CEO. "iPhone is off to a great start -- we hope to sell our one- millionth iPhone by the end of its first full quarter of sales -- and our new product pipeline is very strong."
The news comes a day after AT&T (T) said it had activated 146,000 iPhones in its second quarter ended June 30. The huge iPhone rollout took place the evening of June 29, so there were only two iPhone sales days in the latest quarter.In keeping with the hyped-up nature of the iPhone rollout, Wall Street had high expectations for sales and activations of the game-changing smartphone. So Apple shares sold off in heavy trading Tuesday after AT&T's numbers, which were taken as a disappointment. Analysts had expected Apple to sell somewhere between 200,000 and 700,000 iPhones during the debut. The iPhone brought in about $150 million in sales for Apple, but the Cupertino tech shop is deferring the revenue over a two year time period and booked only a fraction of that take in the third quarter. As TheStreet.com reported, Apple also receives about $200 from AT&T for each phone sold and $9 a month through a revenue sharing agreement that gave Ma Bell a five-year exclusive on the iPhone. Apple shares rose modestly late Wednesday after rising $2.37 in regular trading to $137.26.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV