Apple – Number 1 Vendor With A Pile of Cash
As we are nearing the iPad 3’s release date, more good news keeps flowing for Apple and particularly for its shareholders. Apple’s 2012 Q1 earnings have beaten everybody’s expectations. Apple reported the largest ever quarterly revenue in its history. Mac sales are up by 26 percent year-on-year. Non-Apple PC sales were down by 9.2 percent in U.S over the same period. Thus as we predicted earlier, Apple exceeded Hewlett Packard’s sales and became World’s Number 1 PC Vendor. The numbers are staggering – iPad sales are 111 percent up over the previous year and reached 15.43 million in the quarter. 37.04 million iPhones were sold which is 128 percent increase year-on-year.
According to Apple’s CEO, Tim Cook, iPhone 4S demand was so huge that it was short of supply throughout the quarter. When questioned about tablet competition referring to Kindle Fire, Cook exuded confidence in the ecosystem of the iPad and iPad apps. He made no bones about his feeling towards devices like eReaders. Cook feels these are single-feature devices and people will not settle for them. He also believes that in future tablets will surpass PC’s in numbers.
Apple is now sitting with a pile of cash on hand. It is having a record $98 billion and many analysts were curious to know about Apple’s plans for deploying this cash. Analysts believe that Apple is going to announce some deals soon on smart television and in the content area. But in the meanwhile the quarter results have reaffirmed that iPad rules the roost in the tablet market and Kindle Fire is far away from making any dent on iPad. Do you think that iPad 3’s release might just settle the question once for all?