Jul 21, 2010 Posted by brindils on Jul 21, 2010 in Technology and Internet | 0 comments

Apple`s profits raise for 78% after “Antennagate”

Technology giant Apple has abandoned its recent problems with the new iPhone 4 to announce a massive increase of 78 percent of the profits.

The company broke Wall Street expectations after the phenomenal appetite of consumers for new products, including the iPad.

Apple said revenue rose 61 percent to $ 15.7 billion (10.3 billion pounds) in the second quarter. Profits rose 78 percent to 3.25 billion U.S. dollars (£ 2.1 million).

Apple said it sold 8.4 million iPhones, up 61 percent over last year.

And it sold 1.7 million units of the new iPhone 4 during the last three days of the quarter.

Its shares rose more than 3 percent in after-hours trading in New York.

It also sold about 3.3 million iPads during the first three months on the market.

Although the iPhone and the iPad, launched in January, generated most of the headlines for Apple, it was the Mac computer that helped make the quarter for the company.

Apple sold 3.47 million Macs, much better than the 3.2 million Wall Street expected.

Also continued to expand globally, with international sales comprising 52 percent of revenues.

Apple’s strong performance shows that it has not been unduly affected by ‘Antennagate’.

Complaints about the iPhone 4 emerged shortly after its June 24 launch, with users saying that your wireless signal is weakened drastically when the device is held in a certain way. Apple shares have fallen 7 percent since June 24.

Steve Jobs was forced to hold an emergency press conference last week to defend the device and agreed to send a free plastic box for each client.

Chief Operating Officer Tim Cook declined repeatedly to say whether the ‘Antennagate’ controversy had affected sales of the iPhone 4, but called the demand for the device absolutely awesome.

“Let me be very clear about this. We are selling all units can do,” Cook said.

Apple’s performance in contrast with fellow technology company Yahoo, which disappointed Wall Street with slower revenue growth.

Cost cuts meant second-quarter profit rose 51 percent to 213 million dollars (139.6 million pounds), but analysts said the revenue growth of 2 percent was disappointing, since Google announced last week by 24 percent increase over the same period.

Both Yahoo and Google make virtually all their money in online advertising, a sector that was recovering more quickly than other forms of marketing.

Some 29 percent of Yahoo’s revenue comes from outside the United States, with Europe accounting for less than 9 percent of the total.

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