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iPad Has the ‘Mother of All Backlogs’: Apple
Apple said it suffered no material supply line disruption or cost impact in Q2 because of the Japanese tragedy

It's not going to surprise anyone that Apple's fiscal Q2 numbers were light on iPads given its obvious inability to meet demand, but what may surprise Google and its many Android followers was the surge in iPhone sales to 18.65 million units, a 113% jump in growth year-over-year, significantly ahead of IDC's 48% growth projection.

Apple said sales of the dingus were up 155% in the US and 250% in China, where alone it represented a bit under $5 billion, up 4x.

iPads, whose future seems assured given what Apple called a "staggering" iPad lust resulting in the "mother of all backlogs," only hit 4.69 million units in the quarter, reportedly demanding every widget Apple could make and turning into $2.8 billion in revenue.

Happily, in answer to everybody's most pressing question, Apple said it suffered no material supply line disruption or cost impact in Q2 because of the Japanese tragedy despite the "hundreds" of parts it buys there and doesn't expect any dislocation this quarter either although there can always be further earthquake tremors with concomitant power and nuclear problems.

Apple's not sure it can meet iPad demand - and has no idea when supply and demand will come into balance - blaming the difficulties of product transitions - but it expects to introduce the widget in another 13 countries next week. That would make 39 countries with more to come.

Apple wouldn't talk about the iPad/iPad 2 split, ostensibly for competitive reasons - except to say it made more iPad 2s than it did iPads initially. Wall Street thought it might have sold six million or seven million of the things.

Macs sales, as Gartner and IDC have suggested, hit 3.76 million units, up 28%, while the iPods' flagging popularity turned into only 9.02 million units sold down 17%.

The numbers amounted to record Q2 revenues of $24.67 billion, up 83%, and profits of $5.99 billion, or $6.40 a share, up 95%, compared to $3.33 on $13.5 billion a year ago. Apple's gross margin is now 41.4% against 41.7% last year evidently because the iPad isn't as profitable as Apple's other goodies. International sales represented 59% of the total.

For its euphoria Apple has still built a $200 million cushion into its Q3 results just in case. Otherwise the usually conservative company figures it'll do about $23 billion this quarter and earn roughly $5.03 against Wall Street expectations of $5.25 on $23.85 billion.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

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