Apple astounds with $27 billion in Q1 revenue

Q1 2011 financial results: $27 billion in revenue, $6 billion in net profit, 7.33 million iPads sold

Anyone disheartened by news released yesterday that CEO Steve Jobs will be taking a second medical leave of absence: look no further for a little pick-me-up.

Apple announced its record-breaking financial results for the first quarter of 2011 on Tuesday, with revenue of $26.74 billion and net quarterly profit of $6 billion. Compared to $15.68 billion in revenue and $3.38 billion in net profit the same quarter a year ago, Apple’s doing pretty well for itself. That’s a 170.5 percent increase in revenue and a 177.5 percent increase in net profit.

These astounding results were hugely aided by sales of the iPad, a completely new product category Apple introduced in April 2010. The company sold 7.33 million iPads (almost as much as both previous quarters combined) during Q1 2011, as it continues to dominate the tablet market. IDC says 17 million tablets were shipped worldwide in 2010, meaning Apple, with almost 15 million iPads sold last year, accounts for around 88 percent of the market. 

Doubt not the release of a second iteration on the iPad this coming spring.

Beyond the iPad, the company also sold 4.13 million Macs, 16.24 million iPhones and 19.24 million iPods. 

For the second quarter of 2011, Apple expects $22 bililon in revenue, just $1 billion more than analysts’ expectations. The computer-quickly-going-mobile company is definitely relying on the iPhone to make a massive splash on its very first non-AT&T network, Verizon Wireless, starting next month.

While on medical leave, Jobs will continue to act as CEO and make any “major strategic decisions” as he normally would, but COO Tim Cook will be in charge of “day to day operations.” The plan mirrors a similar move made in 2009 when Jobs underwent a liver transplant.

Here’s the letter Jobs sent out to Apple employees yesterday:

Team,

At my request, the board of directors has granted me a medical leave of absence so I can focus on my health. I will conatinue as CEO and be involved in major strategic decisions for the company.

I have asked Tim Cook to be responsible for all of Apple’s day to day operations. I have great confidence that Tim and the rest of the executive management team will do a terrific job executing the exciting plans we have in place for 2011.

I love Apple so much and hope to be back as soon as I can. In the meantime, my family and I would deeply appreciate respect for our privacy.

Steve