On an earnings call with investors, Apple executive Peter Oppenheimer said that the company also saw strong sales overseas and in its retail stores, which generated $6.1 billion in revenue. He also said that Apple is actively looking for uses for its $97.6 billion in cash and that the company is not letting that money “burn a hole in our pockets.” He said the company had nothing to announce on that front, but would do so in the future.
Apple chief executive Tim Cook said that while the iPhone 4S led sales, the company was right to diversify the number of models of the phone available, a reference to the company’s decision to price the iPhone 4 at $99 and make the iPhone 3GS free, on contract. He also noted that the company’s strong retail sales in mainland China were not included in this quarter’s report.
Asked about the Apple TV and the rumored iTV, Cook said that Apple TV has been improved but is still “a hobby” and that he had nothing to announce on that front.
In a release from the company, Cook — as usual — hinted that the company has some “amazing new products in the pipeline.”
Apple is known for providing conservative guidance, but apparently confident that its momentum would continue, the company predicted about $32.5 billion in revenue and earnings per share of $8.50.
Addressing a question about low-priced competitor tablets, Cook said that Apple is prepared for tablets to take over market share from desktop PCs. He added that “the ecosystem for iPad is in a class by itself” and that its App Store far outstrips the competition.
“We don’t see these limited function tablets and e-readers as being in the same category,” he said, saying that he didn’t believe customers would “settle” for competitors’ models. “We'll just continue to innovate like crazy in this area and we think we’ll be able to compete” with current and future tablet competitors, he said.
Apple stock spiked in after-hours trading on the news, up to just over $450 per share during Apple’s call.
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