Apple’s earnings soar past expectations

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Apple has said that its first-quarter earnings for this financial year were significantly higher than what analysts have said after a disappointing holiday season for many tech companies because of the economy, recording $10.2 billion in revenue, up from its last year’s result of $9.6 billion. For shareholders, this equals $1.78 per share in earnings, higher than the analysts predicted price of $1.39.

This has been the first time, as CFO Peter Oppeheimer said in a conference call, that Apple has surpassed the $10 billion mark, thanks to favourable prices in computer parts like DRAM and LCD displays.

Apple also announced that it has sold 2.5 milion Macs, 22 million iPods and 4.3 million iPhones during the first quarter. While the Mac sales were in line with expectations, the iPod shipments were higher than previously thought. iPhone sales, however, were slightly less than what it estimated.

While its portable notebooks continue to grow, its desktop line fell – with COO Tim Cook saying comparison was tough since the new iMacs were updated in December 2007, and a general ‘disenchantment’ with desktop computers in general. It also said it is looking at the netbook market, but it still is undecided in entering it or not.

iTunes sales saw an increase, with Christmas Day and the following week where music sales peaked; while iPod units growth can be contributed to overseas markets, as units decreased in the US market.

Apple also announced its prediction for the next quarter, and will follow in a similar pattern in having a guidence well below predictions from analysts, saying that they expect revenue between $7.6 billion and $8 billion, with a earnings per share between 90 cents and $1.

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