RSSApple's Q3 numbers: iPod sales mostly flat, Macs selling at record pace
By Ed Oswald | Published July 21, 2008, 6:00 PM
Apple said in its quarterly earnings conference call Monday that it has shipped 2.5 million Macs in its fiscal third quarter, with the company hinting at a "product transition" to come during this quarter.
In typical Apple fashion, chief financial officer Peter Oppenheimer gave little details as to what the transition may be. The only hint was that the mystery product would cut into the company's gross margins.
Overall, Mac desktop sales rose 49 percent, while sales of portables rose 37 percent, marking a record quarter for the company. Some may find this surprising considering portables have traditionally been a faster growing segment recently -- both in the industry overall and at Apple. Apple doesn't, however, break down actual sales figures between desktops and portables.
Apple company stores are also doing well, posting revenues of $1.44 billion and traffic that was up 10 million in the quarter to 32 million. 476,000 Macs were sold in the stores, with over half being new to Apple.
Oppenheimer added that the company plans to open stores in Switzerland and Germany in the second half of the year, further increasing Apple's international retail presence.
Apple's revenues jumped 38 percent year-over-year to $7.46 billion, while profits rose 31 percent to $1.07 billion, or $1.19 per share. During the last quarter, the iPhone accounted for $419 million in revenues, the company said.
That figure will no doubt increase in the coming quarter, which includes the launch of the second-generation iPhone 3G. 20 new markets will also get the iPhone on August 22, with the remaining 30 preannounced markets joining that list by the end of the year.
The iPhone's App Store has proved to be a massive hit, with 25 million applications downloaded in just the 10 days after its launch. Over 900 apps now are included, with 90 percent below $10.
It should be noted when discussing iPhone sales that Apple will not post revenues as one lump sum, the company said. Rather, it will treat it as a subscription, spreading the revenues out over the expected 24-month lifecycle of the device.
This will result in revenues likely increasing at a far slower rate than one would anticipate, although at the same time it could also buoy Apple in later quarters where revenues in other divisions might be down.
Besides the record quarter for Macs, it sold 11,011,000 iPods, up 12 percent, and 717,000 iPhones, which was up from 270,000 in the year-ago quarter (it should be noted that the iPhone was only on sale for 2 days in Q3 of last year). Oppenheimer said that the growth in iPods were primary driven by sales of the Shuffle.
Apple is also refusing to discuss CEO Steve Jobs' health following his gaunt appearance at WWDC last month. After one analyst asked for more information, Oppenheimer returned, "Steve's health is a private matter."
This is what happens when people start seeing the light...
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|fygdybhy bfhvthgv
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|You have to wonder what Apple without Steve Jobs will be like. Will it return to the past and get some clown in there who will f it all up?
If i were an Apple shareholder, i would worry about it. Heck, i am an Apple user and i worry about it.
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|Steve Jobs never came back to Apple as we were told. He's retired, living on an island in the South Pacific. This is the result of some toenail clippings and a cloning vat.
Seriously, though, I wonder what will happen when the day comes as well.
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|"476,000 Macs were sold in the stores, with over half being new to Apple."
Once you go Mac you won't go back! ^__^ At this rate it won't be long before the Mac achieves a double digit market share.
People are starting to wake up and realize the superiority of Apple hardware and Mac OS X. Nothing comes even remotely close in comparison. Get a Mac and come out of the stone ages of computing.
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|You mean in the US market?
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|Kudos to Apple. The only problem is while you have a Messiah to obey MSFT have a living God. No worries, there is always a 2nd or 3rd place.
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|At this rate it won't be long before the Mac achieves 10% market share in a field with only 3 or so large competitors.
Doesn't sound quite so rosy, now does it?
(Ignoring the fact that Jobs could take a dump and it would smell rosy to you.)
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|You have yet to explain exactly what makes "Mac hardware" superior to identical PC hardware. Without using OS X as an explanation point, do you have the ability to justify your comment?
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|Styling and design.
Is this really that hard?
But next, why don't you ask, other than OS compatibility, styling and design and a logo, what makes them different?
And then you would have all of the PC fanboys confused to no end as they continue to think there is some difference and suddenly folks will realize (well we can dream) that this entire debate, as well as your question, is specious.
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|At this rate it won't be long before the Mac achieves 10% market share in a field with only 3 or so large competitors.
With the increasing commoditization of the desktop, is anyone surprised at this????
Three quarters of the brands are already controlled/owned by just several companies, and with decreasing margins there is NO reason not to expect further mergers and consolidation.
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|I knew the answer before I posted, I just wanted the catharsis of seeing the clam answer the question on his own.
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|Jobs will rebound from being sick with a brilliant idea for iMovie '09... it's just a matter of time...
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|Oh looks like steevie hasnt been taking care of himself.
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|"Apple is also refusing to discuss CEO Steve Jobs' health following his gaunt appearance at WWDC last month. After one analyst asked for more information, Oppenheimer returned, "Steve's health is a private matter.""
Oh dear, that's going to make people talk even more (unless of course he is ill again - which would result in even more talking).
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