Comments on: iPod sales drive Apple earnings

Analysts expected a little more revenue, but results are in line with Mac maker's predictions and earnings are higher than expected.

[CBSTV]

Second strongest quarter in history

It would have been an amazing feat to top the last quarter since it
included 2005 Christmas sales.

Apple had $8.7 billion in cash and short-term investments at the
end of last year. I wonder how much more money they've
stockpiled since then?

[dotmike]

They spent money

They've been opening stores like crazy. I even hear there's a huge
glass cube being designed for the Manhattan store, which alone
probably accounts for $400M or so.

[CBSTV]

Second strongest quarter in history

It would have been an amazing feat to top the last quarter since it
included 2005 Christmas sales.

Apple had $8.7 billion in cash and short-term investments at the
end of last year. I wonder how much more money they've
stockpiled since then?

[dotmike]

They spent money

They've been opening stores like crazy. I even hear there's a huge
glass cube being designed for the Manhattan store, which alone
probably accounts for $400M or so.

[ewestby]

Unusual choice for this article's link and headline

The link "Apple misses on revenue" and the headline "iPods carry
Apple" are both unfortunate: the first implying that Apple had a
disappointing quarter, and the second that Apple's business is
being propped up solely by iPod sales.

Since analysts rightly care more about income than revenue --
and indeed the stock is up 5% in after-hours trading -- it would
seem that this negativity is misplaced. A contrarian view is often
healthy, but in this case it looks more like a deliberate attempt
to find a negative spin on an otherwise positive story.

As for the iPod's positive effect on Apple's bottom line, this is
undeniable! Most Apple watchers, though, are instead heartened
by the fact that Macintosh shipments in FY2006Q2 were still up
4% over FY2005Q2, even with the Intel transition causing
uncertainty -- and without Boot Camp in the mix yet to boost
Mac sales.

See http://news.yahoo.com/s/ap/20060419/ap_on_bi_ge/
earns_apple_computer for another view.

[ewestby]

Link changed

It appears the "Apple misses on revenue" link on the News.com
front page has been removed. Good call. I withdraw the
comment....

[ewestby]

Unusual choice for this article's link and headline

The link "Apple misses on revenue" and the headline "iPods carry
Apple" are both unfortunate: the first implying that Apple had a
disappointing quarter, and the second that Apple's business is
being propped up solely by iPod sales.

Since analysts rightly care more about income than revenue --
and indeed the stock is up 5% in after-hours trading -- it would
seem that this negativity is misplaced. A contrarian view is often
healthy, but in this case it looks more like a deliberate attempt
to find a negative spin on an otherwise positive story.

As for the iPod's positive effect on Apple's bottom line, this is
undeniable! Most Apple watchers, though, are instead heartened
by the fact that Macintosh shipments in FY2006Q2 were still up
4% over FY2005Q2, even with the Intel transition causing
uncertainty -- and without Boot Camp in the mix yet to boost
Mac sales.

See http://news.yahoo.com/s/ap/20060419/ap_on_bi_ge/
earns_apple_computer for another view.

[ewestby]

Link changed

It appears the "Apple misses on revenue" link on the News.com
front page has been removed. Good call. I withdraw the
comment....

[Llib Setag]

Apple: 2nd Highest Quarterly Sales in History : C|NOT "so,so"

Go to the SOURCE people...

www.apple.com

CUPERTINO, California?April 19, 2006?Apple® today
announced financial results for its fiscal 2006 second quarter
ended April 1, 2006. The Company posted revenue of $4.36
billion and a net quarterly profit of $410 million, or $.47 per
diluted share. These results compare to revenue of $3.24 billion
and a net profit of $290 million, or $.34 per diluted share, in the
year-ago quarter. Gross margin was 29.8 percent, equivalent to
the year-ago quarter. International sales accounted for 43
percent of the quarter?s revenue.

Apple shipped 1,112,000 Macintosh® computers and 8,526,000
iPods during the quarter, representing 4 percent growth in Macs
and 61 percent growth in iPods over the year-ago quarter.

?We?ve generated over $10 billion in revenue and almost $1
billion in earnings in the first half of fiscal 2006,? said Steve
Jobs, Apple?s CEO. ?Our transition to Intel processors is going
very well, and our music business just experienced another
quarter of outstanding growth.?

?We?re very pleased to report the second highest quarterly sales
in Apple?s history, resulting in year-over-year revenue growth of
34 percent and earnings growth of 41 percent,? said Peter
Oppenheimer, Apple?s CFO. ?Looking ahead to the third quarter
of fiscal 2006, we expect revenue of about $4.2 to $4.4 billion.
We expect GAAP earnings per diluted share of about $.39 to $.
43, including an estimated $.04 per share expense impact from
non-cash stock-based compensation, translating to non-GAAP
EPS of about $.43 to $.47.?

Apple will provide live streaming of its Q2 2006 financial results
conference call utilizing QuickTime®, Apple?s standards-based
technology for live and on-demand audio and video streaming.
The live webcast will begin at 2:00 p.m. PDT on Wednesday,
April 19, 2006 at http://www.apple.com/quicktime/qtv/
earningsq206/ and will also be available for replay. The
QuickTime player is available free for Macintosh and Windows
users at www.apple.com/quicktime.

C|NOT : Bought & paid for by the communist loving Microsoft.

[Llib Setag]

Apple: 2nd Highest Quarterly Sales in History : C|NOT "so,so"

Go to the SOURCE people...

www.apple.com

CUPERTINO, California?April 19, 2006?Apple® today
announced financial results for its fiscal 2006 second quarter
ended April 1, 2006. The Company posted revenue of $4.36
billion and a net quarterly profit of $410 million, or $.47 per
diluted share. These results compare to revenue of $3.24 billion
and a net profit of $290 million, or $.34 per diluted share, in the
year-ago quarter. Gross margin was 29.8 percent, equivalent to
the year-ago quarter. International sales accounted for 43
percent of the quarter?s revenue.

Apple shipped 1,112,000 Macintosh® computers and 8,526,000
iPods during the quarter, representing 4 percent growth in Macs
and 61 percent growth in iPods over the year-ago quarter.

?We?ve generated over $10 billion in revenue and almost $1
billion in earnings in the first half of fiscal 2006,? said Steve
Jobs, Apple?s CEO. ?Our transition to Intel processors is going
very well, and our music business just experienced another
quarter of outstanding growth.?

?We?re very pleased to report the second highest quarterly sales
in Apple?s history, resulting in year-over-year revenue growth of
34 percent and earnings growth of 41 percent,? said Peter
Oppenheimer, Apple?s CFO. ?Looking ahead to the third quarter
of fiscal 2006, we expect revenue of about $4.2 to $4.4 billion.
We expect GAAP earnings per diluted share of about $.39 to $.
43, including an estimated $.04 per share expense impact from
non-cash stock-based compensation, translating to non-GAAP
EPS of about $.43 to $.47.?

Apple will provide live streaming of its Q2 2006 financial results
conference call utilizing QuickTime®, Apple?s standards-based
technology for live and on-demand audio and video streaming.
The live webcast will begin at 2:00 p.m. PDT on Wednesday,
April 19, 2006 at http://www.apple.com/quicktime/qtv/
earningsq206/ and will also be available for replay. The
QuickTime player is available free for Macintosh and Windows
users at www.apple.com/quicktime.

C|NOT : Bought & paid for by the communist loving Microsoft.

[dotmike]

Headlines carry CNET

Sometimes I wonder if CNET is worried its readership would
drop off if it used more accurate, less "British tabloid" style
headlines.

The existing headline of course implies that without iPod, Apple
would be dead in the water, because no one at all bought its
computers, peripherals or software (apart from the 1.2 million
people who did, generating greater revenue than pure iPod
sales, but let's just ignore them).

Whereas, a headline such as "iPod and Mac sales carry Apple"
would imply that Apple made it revenue from, well, selling iPods
and Macs.

Looking forward to the return of the word BELEAGUERED!

[dotmike]

Headlines carry CNET

Sometimes I wonder if CNET is worried its readership would
drop off if it used more accurate, less "British tabloid" style
headlines.

The existing headline of course implies that without iPod, Apple
would be dead in the water, because no one at all bought its
computers, peripherals or software (apart from the 1.2 million
people who did, generating greater revenue than pure iPod
sales, but let's just ignore them).

Whereas, a headline such as "iPod and Mac sales carry Apple"
would imply that Apple made it revenue from, well, selling iPods
and Macs.

Looking forward to the return of the word BELEAGUERED!

[john55440]

Sales, IPod vs Mac (Reuters)

From a 04-19-06 Reuters article:

"Sales of iPods and songs and videos sold on its iTunes online store accounted for 50 percent of revenue and sales of Macs represented 36 percent of revenue."

Among many other things, the article stated that "Apple had nearly a 30 percent gross margin."

[john55440]

Sales, IPod vs Mac (Reuters)

From a 04-19-06 Reuters article:

"Sales of iPods and songs and videos sold on its iTunes online store accounted for 50 percent of revenue and sales of Macs represented 36 percent of revenue."

Among many other things, the article stated that "Apple had nearly a 30 percent gross margin."