Apple's Bottom Line Jumps 67% in Q4

Strong Computer Sales Boost Company; Total iPhone Sales Hit 1.389M

By Jon Hemingway -- Broadcasting & Cable, 10/23/2007 11:14:00 AM

Apple’s profits in its fiscal fourth quarter rose 67% compared with the same quarter one year ago, led by strong computer sales.

The company recorded revenue from computer sales of $3.1 billion versus $2.2 billion a year ago, a 40% rise. Revenue generated from iPod sales rose 4% from $1.6 billion to $1.55 billion, while sales from the segment that includes the iTunes store rose 33% to $601 million from $452 million.

Revenue from the iPhone, unveiled this summer, was $118 million in the quarter on shipments of 1.119 million units. Apple cut the price of its 8-gigabyte iPhone in September to $399 from $599 to boost sales. Overall sales of the iPhone were at 1.389 million at the end of the fourth quarter.

Apple recorded overall revenue of $6.22 billion in the fourth quarter and net earnings of $904 million, or $1.01 per share, beating the consensus call of $0.86 per share. In the same quarter in 2006, the company had revenue of $4.84 billion and earnings of $542 million, or $0.62 per share.

For fiscal-year 2007, Apple’s revenue climbed to $24 billion from $19.3 billion in 2006 while net income rose to $3.5 billion from $1.98 billion.

“Apple ended the fiscal year with $15.4 billion in cash and no debt," chief financial officer Peter Oppenheimer said in a statement. “Looking ahead to the first quarter of fiscal 2008, we expect revenue of about $9.2 billion and earnings per diluted share of about $1.42."