Inside View from Ireland: 6.9m iPhones

IN A CONFERENCE CALL, Apple reported quarterly earnings that surged 26.1% over the year-ago period. The numbers: net income of $1.14 billion, or $1.26 per share, on sales of $7.9 billion, compared with earnings of $904 million, or $1.01 per share, on sales of $6.2 billion for the same period a year ago. Those results beat the consensus earnings estimate of $1 billion, or $1.11 per share, on sales of $8 billion, reported by Thomson Financial. These numbers do not recognise revenues and earnings related to the iPhone. If those positive results were factored into the quarterly earnings statement, Apple would have reported earnings of $2.4 billion on sales of $11.58 billion, thanks to the effects of the subscription-account method used to tally profits and sales from sales of its iPhone and AppleTV.

Forbes Magazine says, "If Apple recognized its iPhone revenue differently--say, scrapping its subscription-based revenue recognition model--iPhone sales could have accounted for 39% of Apple's revenues." The iPhone is taking market share from Nokia and RIM. Nonetheless, these robust iPhone sales appear to fall below some analysts' expectations. Moreover, when consumer spending is tight, people look at value-for-money and a pricey iPhone might not be the kind of Christmas purchase they agree to fund.

Apple reported that it sold 6.9 million iPhones for the quarter, surpassing the 6.8 million sales tallied by rival Research In Motion for its most recent quarter. "Not bad for being in the market for just 15 months," said Jobs, who doesn't typically speak on conference calls with investors.

In a related tweet, I pointed out that Google finds 35,800 results for "iphone problem" but fewer than 7,400 results for "N95 problem". I wonder if that means five times as many iPhones were sold than Nokia N95 handsets or if the iPhone is a problem phone. No matter, the iPhone in Ireland is tearing market share from Vodafone.

Here in Ireland, forecasts suggest that within two years, the level of wireless penetration in Ireland will be 121.0%. Total subscribers will increase from 5.16 million in 2008 to 5.36 million in 2010.

Brian Caulfield -- "Steve Jobs Pumps Apple's Prospects"
APPL at a glance. Nokia at a glance.
Adrian Weckler -- "iPhone 1.0: Biggest Flop in Tech History"

Pat Phelan -- "How to Unlock a 3G iPhone"