This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Rides iPhone Wave, iPad Backlog

Stocks in this article: AAPL

CUPERTINO, Calif. ( TheStreet) -- Record iPhone sales laid the foundation for Apple's (AAPL) stellar second-quarter results, released after market close on Wednesday, but supply issues continue to weigh on the iPad.

The consumer tech giant shipped 18.6 million iPhones during the quarter, a massive 113% hike on the prior year's quarter, accounting for half of the firm's total revenue of $24.7 billion.

iPad sales came in below analysts' expectations, with Apple shipping 4.7 million iPads, compared to the 6.15 million and 6.5 million predicted, respectively, by Goldman Sachs and Canaccord Genuity.

Apple said the iPad problem is one of supply -- not demand. Speaking on the company's conference call after market close Wednesday, CFO Peter Oppenheimer said Apple sold every iPad 2 it made during the quarter, and would have liked to end the period with more channel inventory.

COO Tim Cook was also quizzed about the iPad, saying that Apple will produce "a very large number" during the third quarter. "Whether that will be enough to meet demand, I don't know. Demand has been staggering -- I'm not going to predict when supply and demand will come into balance."

Widespread sellouts were reported at Apple stores and retailers when the iPad 2 debuted last month, and, at one point, the company's online shop listed a four- to five-week wait for the device. now says that the second-generation iPad will ship within one- to two-weeks, although Cook said that the firm is still facing the "mother of all backlogs."

Despite Cook's vagueness, analysts remain bullish on Apple iPad prospects. "We believe demand is very strong and expect sales to increase significantly in the second half of fiscal 2011 as supply ramps," said Michael Walkley, an analyst at Canaccord Genuity, in a note released on Thursday. "Despite the introduction of competitive 10-inch Android 3.0 tablets at CES, MWC, and CTIA from Motorola (MMI), LG, Samsung and others, we expect Apple to hold dominant market share of the tablet market in calendar 2011."

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs