Apple Profit Jumps 78%, But Free Case Giveaway Will Cost $175 Million

Earlier this week Apple Inc. (NASDAQ:AAPL) announced that their profit has jumped 78%. The sales for the new Apple iPhone 4 and the Apple iPad tablet are very strong. The current quarter also has a very strong forecast. Apple’s revenue for the quarter that ended June 26th was $15.7 billion. Apple CEO Steve Jobs said that Apple still has “amazing new products still to come this year.” Giddy up!

Apple is selling iPads and iPhones “as fast as we can make them” said Apple COO Tim Cook on a conference call. Apple has not seen any decline because of the antenna problems, but they will be spending $175 million to give away free cases to resolve the problem. Shares of Apple rose 2.5% during the after-hours trading of the earnings announcement.

Apple sold 3.5 million computers, which is a 33% increase from a year ago. About 3.3 million iPads have been sold, thus generating $2.16 billion in revenue. iSuppli, a research company raised their iPad sales estimates in 2010 to 12.9 million from 7.1 million.

[Wall Street Journal]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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