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Apple sold a record number of iPhones, more than 16 million between September and December 2010.(Credit:Apple)
In a display of perfect timing, Apple blew past analyst expectations in reporting the best financial performance in its history today.
Apple reported revenue of $26.74 billion and profits of $6 billion, or $6.43 per share. Revenue was up 71 percent from a year ago, and earnings were up 78 percent. Analysts were expecting revenue of $24.38 billion and earnings per share of $5.38.
The company's gross margins dipped slightly to 38.5 percent compared to 40.9 percent a year ago, as Apple had forecast during the company's last earnings call.
The report followed news yesterday that CEO Steve Jobs will be taking an indefinite leave of absence from the company to focus on his ongoing health problems. He retains CEO duties, while COO Tim Cook will handle the day-to-day operations of the company. Apple included a quote from Jobs in the press release accompanying the earnings report today.
"We had a phenomenal holiday quarter with recordMac,iPhone andiPad sales," Jobs said. "We are firing on all cylinders and we've got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can't wait to get their hands on."
Apple shares opened down more than 20 points this morning in the aftermath of Monday's revelation that Jobs would be taking a medical leave of absence. They rebounded to close at $340.65, and Wall Street responded warmly to the blow-out earnings report, sending shares up almost 2 percent to $342.07 in after-hour trading.
Apple said it sold 4.13 million Macs during the quarter, 23 percent more than the holiday quarter a year ago, 16.24 million iPhones, 86 percent better than a year ago, 19.45 million iPods during the quarter, seven percent down from a year ago, and 7.33 million iPads.
Apple continued to put away cash, adding $9.8 billion during the quarter, putting its bank account over $60 billion.
Sales of the iPhone more than doubled from last year. CFO Peter Oppenheimer said on an earnings call with analysts that made $10.47 billlion in revenue alone from iPhone and related accessories.
In its first holiday quarter, Apple was able to increase its supply of iPads, which had been problematic for the company since its debut in stores in April. Oppenheimer said the company made $4.61 billion in revenue alone from iPad and iPad accessories.
Stay tuned for Apple's earnings call at 2 p.m. PT, where analysts will be clamoring for specific details on Jobs' health and any potential future plans for transitioning COO Tim Cook into the role of CEO. We'll update this story often with details from the call.
Updatd at 2:14 p.m. PT.
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