Blog Post

How The iPhone Is Juicing Apple’s Stellar Financial Results

Apple (NSDQ: AAPL) released staggering results today for its second-quarter, fueled mostly by surging iPhone sales. The company’s nearly three-year old mobile-phone unit is clearly becoming one of the company’s most important staples as iPod sales decline and Mac sales grow incrementally.

The iPhone’s contribution to the business was discussed at length during Apple’s quarterly conference call today with COO Tim Cook and CFO Peter Oppenheimer. While analysts were eager to ask about iPad demand, which Apple characterized as shocking in the U.S., they completely avoided inquiries into yesterday’s supposed next-generation iPhone leak to Gizmodo.

Here’s a snapshot of how the iPhone contributed to Apple’s business in fiscal Q2:

— Apple sold a record 8.75 million iPhones.

— iPhone sales jumped by 131 percent compared to the same period a year earlier.

— iPhone sales grew three times faster than IDC’s estimate for the overall smartphone market in the March quarter.

— iPhone revenues totaled about $5.45 billion, or about 40 percent of the company’s overall Q2 revenues.

— The iPhone costs an average of $600 each.

— iPhone sales are fueled, in part, by larger distribution. Apple’s COO Tim Cook said iPhone sales in the Greater China region were up nine times year over year, and that in the first six months of the company’s fiscal year, revenues totaled $1.3 billion, which is up over 200 percent year over year.

— Beyond the actual device, Apple has ancillary revenue-makers, like the App store. The company said it is more than breaking even on the App Store, but that it is not supposed to be a huge money-maker. The App Store to date has generated 4 billion downloads and has 185,000 apps. There’s 3,500 specific apps made for the iPad.