Record-setting sales of Macs and iPods propelled Apple to healthy profits, the company announced Monday. But Steve Jobs' absence from Apple's third quarter 2008 conference call prompted some analysts and investors to question whether the company's leader is healthy as well.
When inquired about Jobs' health during the conference call, Peter Oppenheimer, Apple's senior vice president and chief financial officer, declined to disclose details.
"He has no plan to leave Apple," Oppenheimer said. "Steve's health is a private matter."
Andy Hargreaves, consumer electronics analyst at Pacific Crest
Securities, said the lack of transparency regarding
Jobs' health only adds to investors' uncertainty in the company's future.
"Not addressing Steve Jobs' health perpetuates the fear that it's a real problem," Hargreaves said.
Despite this chilly topic, Apple had good news regarding its Q3 performance. Defying naysayers who expected weak results -- and despite the fact that it had no iPhones to sell during much of the quarter -- Apple posted 38 percent revenue growth and 31 percent growth in its third-quarter earnings, for a net quarterly profit of $1.07 billion, or $1.19 per diluted share.
Though Apple had a strong Q3 showing, the company forecast a weaker fourth quarter. As a result, less-than-optimistic investors pummeled Apple's stock in after-hours trading. As of 2:45 p.m. Pacific time, the stock was at $150, down about $16 from its end-of-day close.
In the earnings call Oppenheimer said Apple netted $1.07 billion in profit, out of an overall $7.46 billion in revenue. The company also sold 2.5 million Macs -- the most computers sold by Apple in any quarter. The iMac was a strong force behind the sales boost in addition to high demand for MacBooks and MacBook Pros, Oppenheimer said.
Overall, Q3's revenue grew 38 percent from 2007's Q3 revenue. But Apple's gross margin fell to 34.8 percent from 36.9 percent in the year-ago quarter, raising concern among investors.
Hargreaves said the "negative chatter" among investors is overshadowing a brighter future for Apple -- considering the launch of the iPhone 3G, which may be the company's most significant product in history.
"I'm thinking in three months, assuming Steve Jobs doesn't die, people that take advantage of that opportunity [of investing in Apple's stock]
will be pretty happy," Hargreaves said.
Apple Reports Record Third Party Results [Press Release]
