Wednesday, April 20, 2011

Apple blows out its Q2 numbers, big time – but can they please get their App Store back up online?

Update: Finally, finally, I was able to download the app I wanted to look at this afternoon. Look for a post on the new tablet app from Frankfurter Allgemeine tomorrow – bring your German dictionary.

This afternoon would have been the time I looked at a new newspaper iPad app from Germany – that is, if I could get into Apple's App Store. Instead, I have found it dead all afternoon (have you had better luck?).

In the meantime, Apple reported its second quarter (of its fiscal year 2011) earnings and depending on who you read the earnings either "blew away expectations", "a record", "amazing" or "Apple bombshell: terrible iPad numbers" – that last one from Business Insider, proving once again that if it will drive clicks they will post it.

The best headline was from John Paczkowski of the WSJ, assuming he wrote his own headline: "Thar She Blows: A Whale of a Quarter for Apple". Sadly it got rewritten to simply "Apple Blows It Out ... Again." Too bad.
The horrible iPad sales Business Insider Jay Yarow wrote about were that Apple sold a "very light" 4.69 million units, down from 7.33 million units during the holiday season. Of course, these earnings reflect the last month of the original iPad, and only three weeks of iPad 2 sales. 2010 sales of iPads in the same were, of course, zero.

But some analysts were claiming Apple would sell over six million iPads, so what happened?

"We sold every iPad 2 that we could make,” Apple chief financial officer Peter Oppenheimer said, leading to the usual conclusion that listening to analysts will make you stupid.

But the real story here is the boat loads of dough the company is bringing in now: Mac laptop sales were up 59 percent (though desktop sales actually declined 6 percent, guess no one really wants a desktop anymore), and iPhone sales were up a measly 126 percent.

Overall revenue was up 83 percent, so maybe Apple could get buy some new Dell servers to keep their App Store online, huh? (Just kidding, of course.)