Moment of truth: Apple's Q2 sans Steve Jobs

Faith Merino · April 21, 2011 · Short URL:

How did the company do without its fearless leader?

In Apple’s first quarter since Steve Jobs bowed out for his medical leave of absence, how did the company fare without him? Pretty damn well, apparently. Apple released its second quarter numbers on Wednesday afternoon just prior to its earnings call, and true to form, the company beat analysts’ expectations, even without Steve Jobs at the helm.

Apple announced that its revenues for Q2 2011 reached $24.67 billion, which is almost (not quite, but almost) double what it made this time last year and a record for second quarter revenues. In Q2 2010, the company saw $13.5 billion in revenues.

While the year-over-year revenues have soared, compared to last quarter’s $26.74 billion in revenues, this quarter saw a slight step backward. But that’s typical, considering the fact that the company’s Q1 revenues are an engorged culmination of holiday shopping dollars. Last year’s Q1 revenues reached $15.68 billion, which dipped to $13.5 billion in Q2.

So it sounds like Apple is maintaining pretty well despite the absence of its fearless leader. Indeed, it beat out everyone’s expectations—again. Toni Sacconaghi, senior analyst for Bernstein Research, pegged Apple’s Q2 2011 revenues at $24.06 billion—higher than the Street consensus of $23.3 billion, but reduced to account for a delayed iPhone 5 launch, modest Verizon sales, and reduced volumes across Japan.  

“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Steve Jobs in a statement. “We will continue to innovate on all fronts throughout the remainder of the year.”

The company also beat out estimates for the number of iPhones and iPads sold. The company sold 18.65 million iPhones in the second quarter, marking a 113% increase over the same quarter last year. Sacconaghi of Bernstein Research predicted that Apple would sell 17.5 million iPhones, while Street consensus pegged iPhone unit sales at 16.25 million.

Mac sales also beat out expectations—selling 3.76 million units, compared to predictions that Apple would sell 3.6 million units.

Oddly enough, iPad sales were somewhat anemic and came in far below analyst expectations. The company sold 4.69 million units, while Toni Sacconaghi and other analysts predicted the company would sell 6.2 million units. This could be because consumers were holding off for the iPad 2, which launched in early March while Apple’s second quarter ended in late March, leaving only a couple weeks of overlap.

 “We are extremely pleased with our record March quarter revenue and earnings and cash flow from operations of over $6.2 billion,” said Apple CFO Peter Oppenheimer in a statement. “Looking ahead to the third fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $5.03.”

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