Apple Q4 earnings fall wanting expectations: $28.27 billion in revenue, $6.62 billion net profit

CUPERTINO, California-October 18, 2011-Apple® today announced financial results for its fiscal 2011 fourth quarter ended September 24, 2011. The corporate posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. These results compare to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, within the year-ago quarter. Gross margin was 40.3 percent in comparison to 36.9 percent within the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

The corporate sold 17.07 million iPhones within the quarter, representing 21 percent unit growth over the year-ago quarter. Apple sold 11.12 million iPads in the course of the quarter, a 166 percent unit increase over the year-ago quarter. The corporate sold 4.89 million Macs in the course of the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 6.62 million iPods, a 27 percent unit decline from the year-ago quarter.

“We’re thrilled with the very strong finish of a fine fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S have been fantastic, we have now strong momentum going into the vacation season, and we remain really excited about our product pipeline.”

“We’re extremely ok with our record September quarter revenue and earnings and with cash generation of $5.4 billion in the course of the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking forward to the 1st fiscal quarter of 2012, as a way to span 14 weeks instead of 13, we think revenue of about $37 billion and we predict diluted earnings per share of about $9.30.”

Apple will provide live streaming of its Q4 2011 financial results conference call beginning at 2:00 p.m. PDT on October 18, 2011 at www.apple.com/quicktime/qtv/earningsq411. This webcast can be available for replay for about two weeks thereafter.

This press release contains forward-looking statements including without limitation those in regards to the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to these factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures that you can purchase; the power of the corporate to deliver to the marketplace and stimulate customer demand for brand spanking new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs may have at the Company’s gross margin; the inventory risk related to the Company’s ought to order or decide to order product components just before customer orders; the continuing availability on acceptable terms, or in any respect, of certain components and services necessary to the corporate’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties could have at the quality, quantity or cost of goods manufactured or services rendered; risks linked to the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the aptitude impact of a finding that the corporate has infringed at the intellectual property rights of others; the Company’s dependency at the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and repair quality problems will have at the Company’s sales and operating profits; the ongoing service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances which could disrupt supply, delivery, or demand of goods; and unfavorable result of other legal proceedings. Additional information on potential factors that might affect the Company’s financial results is included occasionally within the “Risk Factors” and “Management’s Discussion and Analysis of economic Condition and Result of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 25, 2010, its Forms 10-Q for the quarters ended December 25, 2010; March 26, 2011; and June 25, 2011; and its Form 10-K for the fiscal year ended September 24, 2011 to be filed with the SEC. The corporate assumes no obligation to update any forward-looking statements or information, which speak as in their respective dates.

Apple designs Macs, the neatest personal computers on earth, along side OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the cellphone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 that is defining the way forward for mobile media and computing devices.