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Apple Releases Q1 2010 Financial Results; Major New Product Confirmed

appleq12010.pngApple released its financial results for first quarter 2010, which began on 26 September 2009 and ended on 26 December 2009. Revenue was $15.68 billion and net quarterly profit was $3.38 billion for the period, compared to revenue of $11.88 billion and net quarterly profit of $2.26 in Q1 2009. Apple generated $5.8 billion in cash during the quarter, according to Apple CFO Peter Oppenheimer, who expects revenue in Q2 2010 to drop to the $11.0 billion to $11.4 billion range. Steve Jobs notes that “Apple is now a $50+ billion company”.

Apple adopted new accounting standards this quarter, changing how revenue is recognized for certain items, particularly sales of iPhones and Apple TVs. Under the old principles, Apple accounted for the sales of these items using subscription accounting, which required it to recognize revenue from them over the products’ estimated economic lives. Under the new principles, Apple can account for largely all of the revenue from iPhones and Apple TVs when the products are sold.

Sales of both computers and iPhones were up, with the company selling 3.36 million Macs during the period, a 33 percent increase over Q1 2009, and 8.7 million iPhones, a 100 percent increase over Q1 2009. Sales of iPods were, however, down year-over-year, with 21 million being sold, an 8 percent decrease from Q1 2009.

Perhaps most interesting is that Steve Jobs all but confirmed the existence and announcement of an Apple tablet at the company’s event on Wednesday in his statement that “new products [Apple is] planning to release this year are very strong, starting this week with a major new product…” Other new products are rumored to include a new iPhone model, as well as Apple’s routine upgrades to the hardware in its computers.

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