Apple profits climb as iPhone sales slow
24 April 2008
Apple profits climb as iPhone sales slow
Californian purveyor of cool gadgets, Apple, came up with the goods again on Wednesday, posting a net quarterly profit of $1.05bn, up from $770m a year ago.
Revenues for the three month period to the end of March also increased 43 per cent to $7.5bn, compared to $5.26bn a year ago.
Quarterly iPhone sales topped out at 1.7 million, delivering $378m in revenue. However, this suggests a slowdown in iPhone sales, as shipments in the previous quarter hit 2.3 million, although Christmas may well have been a mitigating factor here.
Chief executive Steve Jobs also tried to put a positive spin on the reports of iPhone shortages in the US, claiming "higher than expected demand". Some commentators believe operator partners are clearing out inventory to make way for a 3G version of the device, but recent price cuts in Europe also suggest that the gadget isn't selling as well as hoped.
Nevertheless, Jobs reiterated that the company is on target to shift its ten millionth device this year, but also admitted that a "significant" number of handsets were being acquired with the intention of users hacking them to work on other networks.
In related news, Apple is also believed to have shelled out around $268m for fabless semiconductor company PA Semi. PA is a chip designer that had ties with Apple when the Californian firm still used PowerPC chips in its Macs, but when Apple decided to go with Intel as a chip provider, the relationship with PA tailed off.
Now the belief is that Apple has picked up PA Semi to help it retain total control over its iPhone and iPod line, by getting the firm to design a powerful but power friendly processor for its mobile devices.
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