Apple to Report 3Q Earnings, Investors Await New iPad Sales

By Erin Harrison July 18, 2011

Following stalled iPad earnings last quarter due to short supply, investors are anxiously awaiting the latest sales figures as Apple prepares to release its third quarter earnings at the close of the stock market July 19.

Wall Street analysts say the popular iPad is on pace to make more money for Apple than its entire Mac division by the end of this year, the Associated Press reported, but the company has been damaged by an inability to make enough iPads to meet consumer demand.

Apple had difficulty meeting demand for the iPad during the second quarter. Many consumers held out for the upgraded iPad 2 that became available this spring, but Apple was not able to keep up with consumer demand.

Meanwhile, Apple executives said that the company was working through the “mother of all backlogs” with the iPad, Apple COO Tim Cook said during last quarter’s conference call.

Financial advisors recommended purchasing Apple Inc’s August $365 call options to position for potential upside ahead of the company’s quarterly earnings, J.P. Morgan Securities’ equity derivatives strategists advised Monday, according to Reuters.

Apple, the world’s most valuable technology company revealed its Q2 2011 earnings in April with 83 percent revenue growth, and 95 percent profit growth in a call with its officials, toppling expectations of analysts and its own projections, TechZone360 reported.

Apple’s $337 billion market value “dwarfs that of Google Inc. and Microsoft Corp. Its iPhone, released in 2007, essentially created the mass consumer smartphone market, and the iPad, released last year, created a hot new computer category and has already sold 20 million units,” the AP said.

The AP said analysts expect earnings of $5.82 per share and revenue of $24.84 billion, according to FactSet. Apple’s stock is up 50 percent since last year.

In the same period in 2010, Apple earned $3.51 per share on $15.7 billion in revenue.

Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Juliana Kenny

Executive Editor, Strategic Initiatives

Related Articles

10 Benefits of Drone-Based Asset Inspections

By: Frank Segarra    1/15/2018

Although a new and emerging technology, (which is still evolving), in early 2018, most companies are not aware of the possible benefits they can achie…

Read More

VR Could Change Entertainment Forever

By: Special Guest    1/11/2018

VR could change everything from how we play video games to how we interact with our friends and family. VR has the power to change how we consume all …

Read More

Making Connections - The Value of Data Correlation

By: Special Guest    1/5/2018

The app economy is upon us, and businesses of all stripes are moving to address it. In this age of digital transformation, businesses rely on applicat…

Read More

3 Ways to Improve Your VR Projects

By: Ellie Martin    1/4/2018

There is no denying that VR is here and will most likely only increase in velocity as a terminal speed is yet to be even hypothesized. That is why it …

Read More

Alphabet to See Schmidt Step Down

By: Maurice Nagle    12/21/2017

In 2001, Google brought Eric Schmidt on board as CEO. To 10 years later become executive chairman, and continue to serve in this capacity through rest…

Read More