Apple iPadTech juggernaut Apple (AAPL) handily beat earnings and revenue expectations last quarter, but supply constraints prevented the company from reaching its full potential. In other words, Apple literally cannot produce enough products to meet consumer demand.

As a result, Apple stock fell about 6% after a brief halt in after-hours trading.

Apple, the second-largest company in the S&P 500, posted revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per share, compared to revenue of $12.21 billion and net quarterly profit of $2.53 billion, or $2.77 per share, one year ago.

The company also revealed that it is sitting on $46 billion in cash. Asked about the cash hoard, CEO Steve Jobs said Apple would hold onto its money with a view toward potential future "strategic acquisitions."

Apple sold a whopping 14.1 million iPhones in the last quarter. Wall Street analysts had been expecting Apple to sell about 11.1 million iPhones. Apple also sold 4.19 million iPads. Gross margin was 36.9%, compared to 41.8% in the year-ago quarter, a change that may have contributed to the stock decline.

International sales accounted for 57% of the quarter's revenue, the company said. Apple sold 3.89 million Macs during the quarter, a 27% increase over last year.

Jobs trumpeted his company's earnings performance.

"We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings -- both all-time records for Apple," said Jobs. "iPhone sales of 14.1 million were up 91% year-over-year, handily beating the 12.1 million phones RIM [Research In Motion, maker of BlackBerry] sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year."

Peter Oppenheimer, Apple's CFO, offered a positive outlook.

"We're thrilled with the performance and strength of our business, generating almost $5.7 billion in cash flow from operations during the quarter," Oppenheimer said. "Looking ahead to the first fiscal quarter of 2011, we expect revenue of about $23 billion, and we expect diluted earnings per share of about $4.80."

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rmassahos. Agree that we probably can't get China to conform to OSHA, etc. That's why we need to try to elect business minded people to government to change the corp. tax law and promote rules that allow businesses to thrive here in the USA. If a multinational produces in the BRIC countries, and others, and doesn't comply with various basics that must be complied with in the USA then tax those items coming to our country accordingly and put the money in our treasury. If same item is produced in USA - no tax. Make adjustments via trade laws at the corp level. It's all about $$$$. I don't know the formula of what the tax difference on a multinational corp would be to produce in the USA for our consumption vs producing in other countries for our consumption but there are those who can figure this out. I have nothing against multinational companies producing globally. If BMW wants to set up a plant and expand in South Carolina (like they have already done) that is great - provides jobs for USA, delivers a high quality item that people want. If they ship vehicles out of the country that is is fine too. I would prefer USA auto companies to deliver the product but let market decide ON LEVEL PLAYING FIELD! CAT, DD, JNJ, QCOM, KO, PEP, UPS, etc. should all be encouraged to manufacture / deliver service in USA and ship throughout the globe but many cannot so they set up shop in the local country to expand their biz. (PEP, UPS, etc.) need to be local to deliver high quality goods and service with speed as fast or faster than a local competitor. That's what makes USA better. We understand competition and our economic system thrives when on an equal playing field. If one looks at companies that thrive globally under the current system it is easy to see how to invest to earn added personal income. Many corps. pay dividends when profits grow. That is the beauty about investing in the market. But if we can change the game at the political level we can thrive and grow employment here rather than abroad. Under today's economic rules with more and more federal regulation and the weight of paying higher penalties in the USA in terms of litigation, multiple layers of taxes, and an increasingly poorly educated work force, if I was leading a company that had multiple options for production I would undoubtedly be driven to produce in another country. It would be a fiduciary responsibility to my stock and bond holders. That is the cruel bottom line in business that many of our fellow citizens fail to grasp when they blindly scream at profits made by companies. Guess what? I and millions of others who were once middle class workers make money on the dividends delivered when profits are made and we continue to invest accordingly. We just need to drive the companies back to our shores but not by tearing down our US dollar like we are doing now but instead by creating the profit enviromnment here that compels a corp to build here in USA. G'night

October 20 2010 at 12:12 AM Report abuse rate up rate down Reply

Time to cash out and redistribute the juice, Apple Juice, that is... California Tea, cider... You all come back,now. Ya hear?

October 19 2010 at 2:30 PM Report abuse rate up rate down Reply

Where are all the liberals crying that Apple is making too much money? The government needs to redistribute this wealth.

October 19 2010 at 7:22 AM Report abuse +1 rate up rate down Reply

Apple wins!

October 18 2010 at 11:01 PM Report abuse rate up rate down Reply

Great News...we will continue to keep the Chinese economy humming along! I would like to know the total number of employees that Apple employs and where they are located (USA vs China/India etc.). We continue to help China grow at the expense of the USA manufacturing jobs. The average Chinese worker makes about $130.00 USD per month but it allows them to have some disposable income which they in turn buy goods that are made in their own country thus creating the Chinese "middle class" which we as a country are losing. I also have a major issue with most Chinese companies and their lack of EPA regulations unless you consider the local river is your personal sewer system. What about their employee welfare programs and benefits? What about their safety regulations? Do they know what OSHA means? If we truly are a global economy that we need to make sure all manufacturing firms operate under the same guidlines etc. regardless of where they are located. It is time that our government gives tax breaks to companies to stay and expand in the USA and not run around the world seeking out cheap labor that they can exploit.

October 18 2010 at 6:06 PM Report abuse -1 rate up rate down Reply
3 replies to pmitch528's comment