Apple: Nine Quarters of iPhone Unit Sales and Revenue Per Unit

Apple: Nine Quarters of iPhone Unit Sales and Revenue Per Unit

Apple is currently experiencing a period of startling revenue and earnings growth. This growth is due in large part to the virtually unbridled success of the popular Apple iPhone. The only practical limit on iPhone sales is the company's ability to manufacture sufficient product to meet global demand. 

In four of the most recent nine fiscal quarters year-over-year iPhone unit sales growth reached triple digits. In all but one quarter year-over-year unit sales rose greater than 60%. Over the most recent eight fiscal quarters revenue from sales of iPhone handsets and related accessories rose from $2.940 billion in the first fiscal quarter of FY 2009 to $10.468 billion in the first fiscal quarter of FY 2011. Over this same eight-quarter period unit sales have increased from 4.363 million units to $16.235 million units.

Revenue Per Unit

There are two ways to view revenue generated from iPhone unit sales. One way is by charting the iPhone average selling price. The other, and the method used in this post, is to chart revenue generated from handset sales and related accessories. The data used in this post is sourced from Apple's quarterly data sheets that incorporates revenue from iPhone accessories sales into the numbers. 

As the chart and table data below indicate, revenue per unit sold has remained fairly consistent over this nine-quarter period. The drop in revenue per unit sold in FQ3 2009 was due to the sharp drop in price on the iPhone 3G as the 3GS iPhone was released but in constrained supply. There is a slight seasonal benefit to revenue per unit in the holiday quarter (FQ1) each year. In FQ4 2009 year-over-year unit sell through increased 38% but reported unit sales rose only 6% due to a dramatic increase in channel supply of iPhone 3G units the prior-year period. In FQ3 2010 Apple put the brakes on iPhone 3GS production ahead of the release of the iPhone 4 leading to a 61.25% rise in unit sales year-over-year but a sequential drop in unit sales. Prior to Apple's action to reduce channel supply of the 3GS handsets at the end of the quarter, unit shipments had been running at about a 90% year-over-year growth pace. 

Apple: Nine Quarters of Results

Apple: Nine Quarters of Results
As a service to AFB members and my fellow AAPL analysts, I'm posting Apple's results for the nine most recent quarters. This post is without commentary and is to serve as a resource and reference for readers who are actively tracking the company's quarterly results.

I will be referencing this post in future Posts At Eventide entries and will be using this data in compiling my own Apple quarterly estimates and AAPL share price forecasts. The quarterly results for FY2009 are post-retrospective adjustments for the change in accounting principles applied to iPhone revenue recognition.

Robert Paul Leitao

	FQ1 2011	FQ4 2010	FQ3 2010	FQ2 2010	FQ1 2010	FQ4 2009	FQ3 2009	FQ2 2009	FQ1 2009
Net sales	26,741	20,342	15,700	13,499	15,683	12,207	9,734	9,084	11,880
Cost of sales	-16,443	-12,831	-9,564	-7,874	-9,272	-7,102	-5,751	-5,457	-7,373
Gross margin	10,298	7,511	6,136	5,625	6,411	5,105	3,983	3,627	4,507
Operating expenses:
Research and development	575	494	464	426	398	358	341	319	315
Selling, general and administrative	1,896	1,571	1,438	1,220	1,288	1,063	1,010	985	1,091
Total operating expenses	-2,471	-2,065	-1,902	-1,646	-1,686	-1,421	-1,351	-1,304	-1,406
Operating income	7,827	5,446	4,234	3,979	4,725	3,684	2,632	2,323	3,101
Other income and expense	136	14	58	50	33	45	60	63	158
Income before provision for income taxes	7,963	5,460	4,292	4,029	4,758	3,729	2,692	2,386	3,259
Provision for income taxes	-1,959	-1,153	-1,039	-955	-1,380	-1,197	-864	-766	-1,004
Net income	6,004	4,307	3,253	3,074	3,378	2,532	1,828	1,620	2,255
Earnings per common share:
Basic	$6.53	$4.71	$3.57	$3.39	$3.74	$2.82	$2.05	$1.82	$2.54
Diluted	$6.43	$4.64	$3.51	$3.33	$3.67	$2.77	$2.01	$1.79	$2.50
Shares used in computing earnings per share:
Basic	919,294	914,555	912,197	907,548	903,542	898,032	893,712	891,180	889,142
Diluted	933,154	928,825	927,361	922,878	919,783	914,374	909,160	902,993	901,494