Apple's iPhone, iPad sales skyrocket as does profits

Apple (NASDAQ: AAPL) announced that it sold 3.27 million iPads and 8.4 million iPhones in the third fiscal quarter. The iPhone sales represent a 61-percent increase from the previous year. Net profit reached $3.25 billion for the quarter, while revenues hit $15.7 billion.

Apple's iPhone sales figures include two days of iPhone 4 sales since the company's quarter ended June 26 and the iPhone 4 went on sale June 24. Apple has said that it sold more than 3 million iPhone 4s.

Tim Cook, Apple's chief operating officer, indicated during the company's earnings call that Apple would be increasing production for the iPad. "We're increasing capacity as quickly as we can," he said. "I'm fairly confident we will increase the capacity." He offered no guidance for when production for the iPad would catch up to demand. The iPad is quickly becoming a popular enterprise tool.

Apple also indicated that the company expects to pay out about $175 million in free rubber bumpers to help end users mitigate their antenna reception problems that have been highly publicized. Apple CEO Steve Jobs announced last week that customers who purchased an iPhone 4 through Sept. 30 would be eligible to receive a free bumper, which covers the device's external antenna rim.

Cook indicated the controversy over the iPhone 4's reception problems had not resulted in a dampening of sales for the device: "Let me be very clear. We're selling every unit we make currently." A recent survey from IDC has also indicated that the flaw isn't dampening sales when it comes to new buyers, but existing iPhone owners are delaying their upgrades to the iPhone 4.

According to a Wall Street Journal live blog of the company's conference call, Cook said more than 80 percent of Fortune 100 companies are deploying or testing the iPhone.

For more:
- see the earnings release
- see this eWeek article
- check out this WSJ live blog of the conference call

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