Apple Earnings Nearly Double on iPhone Demand

April 26, 2012 Updated: October 1, 2015
Pedestrians walk by an Apple Store
Pedestrians walk by an Apple Store on April 24 in San Francisco, Calif. Based on high sales of the iPhone and iPad, Apple reported a 94 percent surge in second quarter earnings with a profit of $11.6 billion, or $12.30 per share compared to $6.0 billion, or $6.40 per share one year ago. (Justin Sullivan/Getty Images)

NEW YORK—Apple Inc.’s quarterly earnings soared 94 percent last quarter, on robust sales of its iPhone smartphone and iPad tablet computer.

The blowout quarterly earnings report allays fears expressed by analysts earlier this month, which sent its shares down more than 10 percent over the last two weeks, not including Wednesday.

For the fiscal second quarter, the Cupertino, Calif.-based electronics giant said it earned $11.6 billion, or $12.30 per common share. The results easily topped analyst consensus estimates of around $10 per share.

The company said that it sold 35.1 million units of its popular iPhone, 11.8 million of iPads, and 4 million units of Macintosh computers. Sales via iTunes store increased 35 percent to $1.9 billion. In total, sales were $39.2 billion last quarter.

Apple forecasted $34 billion in sales in the current quarter, with $8.68 in earnings per share. The company historically has been conservative in its projects.

“The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver,” said CEO Tim Cook in a statement.

The iPhone shows no signs of slowing down, despite fierce competition over features and price presented by rivals running the Google Android operating system. Sales from the Asia-Pacific region doubled, with even higher sales in China.

Analysts questioned whether Apple would converge the laptop computer and tablet to create a hybrid system, in response to the recently released Microsoft Windows 8. Cook shot that idea down, stating, “You can converge a toaster and a refrigerator, but those things are probably not going to be pleasing to the user,” Cook said on a conference call with analysts.

Cook said earlier this month that the company would begin to pay dividends starting in July. Cash on hand at the end of the most recent quarter was $110 billion, according to the company.

Shares of Apple (Nasdaq: AAPL) gained $49.72, or 8.9 percent, on Wednesday.