Keep Aiming for That Apple

With revenue numbers like this, Apple will remain a target for the startup community to strive toward.

Image: ostill / Shutterstock

With Apple's announcement on Tuesday that it had obliterated revenue expectations, the company proved it's still at the apex of tech industry achievement and certified itself as the business model that startups strive to emulate.

In the announcement, Apple said it had doubled its fiscal first-quarter revenue up to (insert synonym of choice for “whopping” here) $46.33 billion, as compared to expected revenues of a measly $38.76 billion, raking in record profits of $13.06 billion. By comparison, Facebook's entire revenue for 2011 is estimated to be just over $4 billion.

The news sent analysts' Apple stock forecasts skyrocketing upwards, according to the Wall Street Journal, jumping from the current value of $431.37 to between $560 and the significant $666, depending on the analyst, with a cash stockpile now approaching $100 billion. It was up 7 percent in early trading and hovering just below $450 at 12:25 p.m. EST.

The numbers definitely show that the Apple business model still works—and that its products are still steering the market. It was also the first earnings report since the death of former Apple chief executive officer Steve Jobs, and it quells any concerns, at least for now, about the company’s transition into the hands of new CEO Tim Cook.

Optimism following the appointment of Cook was always tempered with the belief that Jobs was a true genius, and that such genius is a rare commodity.

And, yes, much of the revenue was generated from decisions made prior to Jobs’ resignation, but this first fiscal quarter of 2012 was guided entirely under the direction of Cook, and it’s hard to find fault with revenue, and growth like this.

So what's the takeaway for the entrepreneurial world? If you've been eying that Apple target as your company grows, for now it's OK to keep doing so.