More on Apple’s Fantastic Quarter

Asymco, which is an Apple booster with great analytical chops, put out some numbers today that get to the bottom of Apple’s quarter. Here’s the chart on year on year revenue growth.

What you will notice is that earnings growth exceeded revenue growth because margins actually increased this last quarter. I am expecting margin compression during 2012 but Apple’s Q1 moved in the other direction on the back of the new iPhone.

Here are some other tidbits via Asymco:

• The iPad is reaching scale faster than the iPhone. It is the iPad which may power Apple’s continued growth as it adds an extra mobile device category that other manufacturers don’t have in scale. I do expect Android inroads here. However, this space has hug growth.
• Apple sold almost 90% more iPhone. But revenue growth was only 85%. Clearly Apple is selling at a lower price point now but growth makes up for this.
• Mac grew faster than the PC market and therefore gained share.
• The iPod is declining consistently both in unit volume and in revenue. Price point dropped from $164 to $157.
• The iTunes store continues to grow very rapidly, reaching a new record level above $2.1 billion revenues
• The top line grew at nearly 60% but the bottom line grew at 94%.

On margins, I see:

• Gross margin of 47.34% (up from 44.68% in Q1 2012)
• Operating margin of 39.26% (up from the 37.42% in Q1 2012)
• Net profit margin of 29.66%

While I think Apple’s valuation has reached uncomfortable levels, the company continues to execute. I am not bullish because of this. But again, Apple’s performance should power shares forward in an aggressive way over the near term because of Apple’s importance as a market leader.

Source: Asymco