It’s no coincidence that Steve Jobs announced his medical leave just one day before the Apple’s earnings call. As expected, the news hit the company’s stock hard, opening Tuesday down 20 points and wiping almost $20 billion off its market cap in one swoop. But the record $26.74 billion in revenue and $6 billion in net income for the quarter ended December 25 appears to have cleared the frown off investor’s faces as Apple’s stock is now almost fully recovered from the drop.
During the quarter, iPhone 4 sales were up 86% to a record 16.2 million units, while Mac sales went up 23% to a record 4.13 million and iPod sales were stronger than expected at 19.45 million – even though that’s still a 7% decline. As for the iPad, Apple’s tablet had another great quarter and even exceeded Mac sales with a record 7.33 million units moved.
Things are looking good going forward. With the Verizon iPhone coming next month Apple is expected to sell around 9 million units this quarter. Furthermore, COO Tim Cook offered some hints at upcoming products by referring to the Air as the “MacBook of the future, shipping today”, which suggest the company is considering a move to flash memory across the board – a move that would need to happen gradually as storage space and price is certainly still a concern.