Apple earns $35bn in Q3; shakes investor confidence

iPad sales were the strongest this quarter growing nearly 84% year-on-year; iPod sales dropped 10% compared to the same quarter last year

Tags: Apple Incorporated
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Apple earns $35bn in Q3; shakes investor confidence Apple missed the mark set by analysts by about $2.4 billion.
By  Clayton Vallabhan Published  July 25, 2012

Analysts predicted that Apple would bring in close to $37.4 billion in revenue for the June quarter, however they might just have to settle for the $35 billion that Apple earned in its third fiscal quarter (Q2 calendar).

In comparison, Apple managed to earn $28.6 billion in Q3 2011. Out of the $35 billion in revenue, the tech giant managed to draw in $8.8 billion pure profit, causing its year-on-year profit to spike 20%.

The iPad was clearly the cash cow for Apple, and managed to sell an impressive 17 million units during fiscal Q3. This marks an 84% increase year-on-year.

Tim Cook, Apple's CEO said: "We're thrilled with record sales of 17 million iPads in the June quarter."

"We've also just updated the entire MacBook line, will release Mountain Lion tomorrow [Wednesday, July 25] and will be launching iOS 6 this Fall," Cook added.

"We are also really looking forward to the amazing new products we've got in the pipeline."

The Apple iPhone sold 26 million units for a 28% year-on-year growth. Apple also sold four million Macs during fiscal Q3, a mere 2% increase year-on-year, but not bad considering the overall PC market slid by nearly 1%. The new Ivy Bridge Macbooks that were released last month are expected to revive sales.

The worst performing product was none other than the iPod, which sold 6.8 million units during the quarter, a slide of 10% over last year.

It seems that the success of the iPad was not enough to hold investor confidence. Apple shares fell $30 in after-hours trading, to float at about $570.

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