As Apple's Profits Soar, iPad Sales Disappoint

While Apple's record second quarter wowed Wall Street earlier today, the company's results were subbed by the its lower-than-expected iPad shipments.

Apple says that it sold 4.7 million iPads during the quarter. Company executives, however, declined to say how that number was split between the original iPad and the iPad 2. Either way, the quarter's results are a notable decrease from the 6.9 million iPad's sold during the second quarter. Wall Street estimated that Apple would sell between 6 and 8 million iPads.

During the company's conference call, Chief Operating Officer Timothy Cook said that Apple was severely backlogged on iPad 2 shipments. We sold every iPad 2 we could make, he said. Apple did not specify what caused its inability to keep up with demand, but speculation points to decreased iPad production ahead of the release of the iPad 2.

Cook denied that the ongoing crisis in Japan would affect iPad supply during the third quarter, but admitted that fourth quarter results are still uncertain.

Beyond June, there risks, but there is no issue that we are aware of today that is insolvable, he said. I would worry if something took a turn for a worst.

Apple estimates that $200 million was lost do the earthquake in Japan, which disrupted supply chains. Cook, however, noted that Apple's supply chain remained largely intact.

At $24.67 billion Apple's revenue for the quarter was up 82% from the same point last year. Fifty percent of that revenue came from sales of the iPhone and related products. Apple sold 18.65 million iPhone's last quarter, an increase of 113 percent from last year.

Cook also answered questions on Apple's patent suit with Samsung. We felt the mobile communication division of Samsung had crossed the line, and after trying for some time to work out the issue, we decided we needed to rely on the courts, he said, acknowledging that Apple is Samsung's largest customer.