Tech sector earnings robust as Apple, Microsoft lead way

09:55, July 27, 2010      

Email | Print | Subscribe | Comments | Forum 

The past week saw several key earnings calls from big players in the technology industry including Apple, Amazon, AT&T, Microsoft and Verizon, with both Apple and Microsoft announcing record quarterly sales.

Overall robust earnings reports from the high-tech sector contributed to a strong finish in U.S. stocks in the past week.

The Nasdaq composite index, home to many technology heavyweights, was up nearly four percent for the week, closing at 2,269.47 points by the end of the trading bell on Friday.

In addition, the Dow Jones industrial average was up more than 326 points, closing at 10,424.62 points. The Standard & Poor's 500 index treaded into 1,110-plus points territory for the first time this month, closing at 1,102.66 points.

Apple last Tuesday reported third quarter revenue of 15.7 billion U.S. dollars, an increase of more than 60 percent compared to the same time last year, representing a record quarterly high in Apple's history.

Following Apple's after-hours call on Tuesday, the company's stock price jumped more than five percent, opening at 265.09 U.S. dollars on Wednesday morning.

Apple's sales were driven by healthy demand of the company's line of Macintosh computers, iPhones, and the company's newest product line, the iPad. Since its launch in April, more than one billion dollars worth of iPads and iPad accessories have been sold, accounting for approximately eight percent of Apple's total sales this quarter.

"We're selling them as fast as we can make them," said Apple's chief operating officer Tim Cook, signaling continuing demand for the product.

The launch of the iPhone 4 also contributed to the company's earnings this quarter. More than 1.7 million units were sold before results for the quarter closed on June 27, just three days after the phone's launch.

Apple's net income for the quarter totaled 3.25 billion dollars, or 3.51 dollars per share. Analysts had expected earnings of 3.11 dollars per share for the quarter.

On Thursday, software giant Microsoft also announced record revenue for its fiscal fourth-quarter, based primarily on strong sales of the company's Windows 7 operating system.

On its call with investors, Microsoft posted 16.04 billion dollars in sales for the most recent quarter, representing a 22- percent increase from the same period last year and beating analysts' expectations by nearly 11 percent.

The company's "strong revenue performance was both broad and deep," Peter Klein , Microsoft's chief financial officer, said on the conference call.

Microsoft's net income for the quarter totaled 4.52 billion dollars, or 51 cents per share. Analysts had expected earnings of 46 cents per share for the quarter.
【1】 【2】


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion