Apple earnings soar, 1.4 million iPhones sold to date
UPDATED 3:42 p.m.--Added a few more details, numbers, and statements from Apple executives from the conference call.
Apple reported another stellar quarter Monday, exceeding estimates in just about every facet of its business.
For the company's fourth fiscal quarter, which ended September 29, the company reported revenue of $6.22 billion and profit of $904 million, or $1.01 in earnings per share. Wall Street analysts had expected Apple to report revenue of $6.1 billion and earnings per share of 86 cents, according to estimates compiled by Thomson Financial.
Apple has now sold 1.39 million iPhones, and 1.1 million during the quarter, the company reported. Mac shipments were up 34 percent compared to last year, and iPod shipments were up 17 percent.
That iPhone price cut, however controversial among the early adopters, seemed to do the trick. As of September 10, Apple said it had sold 1 million iPhones in total. So after the price was cut from $599 to $399, and the $499 4GB iPhone disappeared, Apple sold almost 400,000 iPhones in 18 days, or more than a quarter of all the iPhones sold to date.
Tim Cook, Apple's chief operating officer, confirmed the company expects to sell 10 million iPhones in the calendar year of 2008, but he didn't set a target for iPhones sales during the holiday quarter. It took Apple 2 years to sell around 1.4 million iPods sales in the early days of that product, he said.
It's also clear that Apple is gaining share on the rest of the PC industry. Last week IDC and Gartner had the worldwide PC market growing at around 15 percent, while Mac shipments are growing more than twice as fast. Apple sold 2.1 million Macs during the quarter, a company record and 400,000 units better than its previous best.
Students helped account for the surge in Mac shipments, during a quarter that Cook called "the most successful back-to-school season we've ever had." Apple introduced new iMacs in August, but it also ran a promotion for students that bundled a free iPod along with the sale of a new notebook.
That might have had something to do with the fact that iPod shipments were actually lower than some Wall Street analysts had anticipated. Shaw Wu of American Technology Research had expected Apple to sell 11 million iPods, but the company shipped a total of 10.2 million units. That was actually right in line, however, with a prediction from Piper Jaffray's Gene Munster, who cited an average analyst estimate of 10.9 million units.
Going into the holiday season, Apple expects to record $9.2 billion in revenue and earnings per share of $1.42, the company said. That's higher than what financial analysts were expecting for Apple's first fiscal quarter, a twist for a company that usually provides conservative guidance.
The holiday quarter is usually huge for the iPod division; last year Apple sold 21 million iPods during its first fiscal quarter. And the that were introduced during in September didn't really have much time to make an impact on the results announced Monday.
Mac shipments are usually flat during the company's first fiscal quarter compared to the back-to-school totals as educational buyers drop off and holiday buying kicks in, said Apple CFO Peter Oppenheimer. When asked to look ahead to the current quarter, he seemed somewhat pessimistic that Apple could duplicate the amazing growth it showed during its fourth quarter. Cook, however, noted that Apple saw strong growth in Europe during the past quarter.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
business any day now. Any day.
Enderle, Dvorak and Thurrott are spinning in their graves.
Wait... :-D
Two things that would boost their sales abroad. 1) A subnotebook to bring the Japanese and Asian sales up. 2) A small form factor tower with enough expandability to satisfy the savvy home computer user.
Break the Wedge!
www.breakthewedge.com
Macpro, not going to happen. A cheaper subnotebook on the other
hand ...
:-)
I can't even BEGIN to count the times the i hAtOrz teh aPPleZ
crowd has spouted that tripe over the past 25 years, but when I
count the number of computer companies Apple has outlasted...
WOW!!!
Not even the mighty Compaq (bought by HP) or IBM exist in the
PC marketplace anymore.
Life is good in Apple-Land
In contrast, HP has a 19.6% worldwide share, with 33.0% growth. (Source: IDC)
Enjoy your Yugo.
don't give a hoot how many other people discover them, as long as
Apple keeps on trundling and producing great stuff.
Now, what if we removed servers (which Dell and HP sell a LOT of, and, being x86-based, often count as "PeeCees") from the equation?
/P
Dell doing profit wise with it's market-share? There is no money on
the low end of computing...it makes your market share numbers
look great though. Look at the money Apple is making with it's
small percentage of the market. Profit is what counts.
will.
Point in case ? if Apple is doing well and obviously increasing
their marketshare, its logical to assume Microsoft is losing
marketshare (although modest by Microsoft's "gaming OS"
standards, aka Windows '95 ), losing any percentage of the
market can simply mean they aren't reading the market right
with their products. Lets explore these issues:
Is it possible that VISTA isn't all its cracked up to be, considering
most big businesse's refusal on using it? Ever notice how Vista
works exactly how Window's 95 worked back then, jittery and
seemingly incomplete.
Could it be that the vast consumer market sees the ZUNE as
gimmicky and just another iPod copycat and still opt. to buy the
original? Have you ever seen the HALO ZUNE (or for that matter
the brown one)? Or have you ever considered squirting a song to
a friend? It would seem that Microsoft's marketing of the ZUNE,
is actually making fun of its users, rather than glorify them.
Can it also be that by relying on the success of Halo and XBox 2
so much, that Microsoft has spread themselves out so thin they
don't even realize how to keep things simple anymore or for that
matter come up with great ideas? Honestly, have they ever come
up with any great ideas that wasn't theirs' to begin with?
Obviously their recent split with Bungie can only mean that
Bungie is tired of letting Microsoft ride on its coat tails and have
decided the deal that they made, was like giving their soul to the
devil.
Or could it be with all these Microsoft offerings it's just another
cover up for their weaknesses, in not being able to produce a
viable operating system. I can only see the retiring of Jim Allchin
as an attempt for Microsoft and Allchin himself to save face by
avoiding responsibility for Vista's shortcomings.
Considering all these factors, maybe it could simply mean that
Apple is just doing everything right.
Parallels has more than 600,000 users (and many more using pirated versions) running Windows in VM. Not bad.
The conclusion is obvious: Mac is growing because of Windows :)
including the coming 3rd party apps!) of the iPhone and the new
iPods, Apple should have a blowout holiday season.
I myself am looking for a new portable and an
iPhone/mediaplayer/internet Browser/e-mail MINI COMPUTER.
Disclaimer: The above comment about the pet rock are those of the writer and in no way reflect real or actual conditions of a dissabled iphone.
Even #5 ranked LG Electronics sold 21.9 million phones last quarter.
Numbers from IDC.
pocket in a public place without someone -- particularly younger
people -- asking "Is that an iPhone??? Can I see it???" Again,
Apple's doing something right. It's actually pretty astounding.
- Two Qualitative Tests
- by jmccargar October 27, 2007 8:21 PM PDT
- First: Go to Amazon and check the list of top selling desktops,
- Like this Reply to this comment
-
(37 Comments)then the laptops. As I write this, the top five selling desktop slots
are all Macs. Five of the top selling laptops are Macbooks or
Macbook Pros. Second: Go to an Apple store and just play around
with a 24 inch iMac for 15 minutes, or have a staff person guide
you through a quick tour of Leopard, iLife, or iWork. Then ask
yourself if you wouldn't really like to walk out the door with one, or
whether a lot of other people like you wouldn't want to as well.
They're doing something right.