Apple has reported a first quarter net profit of $3.38 billion on a record $15.68 billion in sales ending December 26, fueled by selling 3.36 million Macintosh computers, 8.7 million iPhones (a 100% jump compared to a year ago), and 21 million iPods (down 8% from a year ago).
The stellar results handily beat Wall Street expectations for the start of Apple's 2010 fiscal year. But at least some of the better-than-expected increase is due to a recent change in accounting rules. In the past, Apple deferred revenues (and costs) for the iPhone and Apple TV. Under the new rules, the restated quarters and the most recent quarter show higher revenue numbers.In Q-1 for Fiscal 2009, Apple's net profit was $2.26 million on revenues of $11.88 billion, according to the Cupterino, Calif. Company. Revenue for Q-2 is expected to be in the $11.0 to 11.4 billion range, according to Peter Oppenheimer, Apple’s CFO. He told analysts on a conference call it was "Apple's best quarter ever."
The full Apple press release and numbers are online.
Apple's stock closed today at @02.87 per share. The stock price has been climbing since last March, when it stood at $83.11.
During the most recent quarter, the company adopted new accounting standards about how to recognize certain revenues. The adoption “significantly changes” how Apple accounts for iPhone and Apple TV sales, according to the company’s statement. Now, Apple recognizes “substantially all” of the revenue and of the product costs for both products when they are delivered to customers. The previous rules, “subscription accounting,” required much of both revenue and costs to be deferred, because Apple had indicated it might periodically provide software upgrades free of charge.