JULY 20, 2010, 5:20 P.M. ET.

Apple's Profit Jumps 78%


Apple Inc.'s quarterly profit jumped 78%, as the company posted stout initial sales of its multimedia iPad device and the latest version of its smartphone, the iPhone 4.

A main driver of growth for the quarter was the iPhone, which sold 8.4 million units, 61% more than a year earlier. Apple also reported it sold 3.3 million iPad devices, which became available in early April.

The company said the average sales price for its iPad was $640 and the average sale price in the quarter for its iPhone was $595. Most consumers get subsidies from carriers when they purchase an iPhone.

View Full Image

Bloomberg News

Pedestrians walk by a sign outside Apple Inc. headquarters in Cupertino, Calif.
Live Blog: Apple's Earnings Call
Mobile Tech Watch
.Apple's profit in the June quarter rose to $3.25 billion, or $3.51 per share, from $1.8 billion, or $2.01 per share a year ago. Revenue increased 61% to $15.7 billion, from $9.7 billion last year.

Apple said it sold 3.5 million Macintosh computers, up 33% from a year ago, and 9.4 million iPods, down 8.6% from a year ago.

The company said about half of Macs sold in stores were to new Apple customers.

In April, the company projected per-share earnings of $2.28 to $2.39 on revenue of $13 billion to $13.4 billion. Wall Street's latest expectations were for a profit of $3.11 a share on revenue of $14.75 billion.

Gross margin fell to 39.1% from 40.9%. Some analysts had expressed concerns about the company's margins, saying the iPad isn't as profitable as other products.

Journal Communitydiscuss..“ Love him or hate him. The only thing that can be said is WOW.