Apples fiscal fourth-quarter profit surged 70% as the company posted strong iPhone and Mac computer sales that pushed revenue above $20 billion for the first time. However, the company’s shares wilted in after-hours as gross margins and iPad sales numbers failed to meet analyst expectations.
Apple Chief Executive Steve Jobs also used the opportunity to take a swipe at Google Inc.’s Android operating system and hardware partners producing devices running on it. The blowout earnings for the Cupertino, Calif.-based electronics giant underscore Apple’s continued transition to mobile devices. That shift started nine years ago with the iPod and has picked up pace with the iPhone and iPad, which Apple Chief Financial Officer Peter Oppenheimer said is being tried at a majority of the world’s top companies.
For the quarter ended Sept. 25, Apple reported a profit of $4.31 billion, or $4.64 a share, up from $2.53 billion, or $2.77 a share, a year earlier. Revenue jumped 67% to $20.34 billion, with 43% coming from the U.S.
In July, the company projected earnings of about $3.44 on revenue of about $18 billion. Wall Street’s latest expectations were $4.08 and $18.93 billion, respectively.
Gross margin fell to 36.9% from 41.8%, the second-straight quarter that metric dropped on year, and behind average analyst expectations of 38.1%. The company had previously indicated that it expected margin compression.
The company’s iPhone sold 14.1 million units, 91% more than a year ago. The line of smartphones had an average selling price of $610, which includes subsidies paid by wireless carriers, the company said. Apple also reported it sold 4.2 million iPad devices — below expectations — at an average selling price of $645.
Steve Jobs used a conference call after the earnings to bash Google and its hardware partners. At one point, he declared devices using Google’s Android mobile operating system would fail, particularly tablet computers competing with his company’s iPad.
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