This past Wednesday Apple Inc. released their F2Q09 report. Revenues increased 8.7% to $8.16 billion and profits increased from $1.05 billion to $1.21 billion, or from $1.16 to $1.33 per share. Gross margins increased from 32.5% to 36.4%. Cash and marketable securities increased by about $800 million to $28.9 billion.
Profits came from strong iPhone sales at 3.8 million units, an increase of 128% year-over-year, and increasing margins. Margins were lifted due to decreasing commodity prices of key component materials, sales of higher margin products including software from the Apps Store, and lower warranty and freight costs. Although Mac products and Services declined about 3%, this number compares favorably to the overall market decline estimated at 7% for the quarter by the IDC.
Apple resisted the recession and posted an increase in quarterly profits of 15%. With CEO Steve Jobs sitting this quarter out, the strong financial results helps to affirm the idea that Apple has a deep bench and will only benefit from Job's intended return this June. A sudden change in Job's condition would nonetheless create strong negative pressure on Apple's stock price and now may be a time to reevaluate Apple and possibly take our gains.