News
Apple reports record earnings as iPod sales soar
Apple on Wednesday posted its highest quarterly revenue and net income in the company’s history thanks to strong holiday sales of iPods. Apple greatly exceeded Wall Street expectations with a net profit of $295 million, or 70 cents a share, for its fiscal 2005 first quarter ended December 25, 2004. Revenue for the quarter was $3.49 billion, up 74 percent from $2 billion in the year-ago quarter.
Along with its record earnings, Apple released several iPod and music sales details. The company reported that it sold more than 4,580,000 iPods during the quarter, representing a 525 percent increase in iPod units compared to this time last year. All iPod models brought in more than $1.2 billion in revenue for Apple during the quarter. Apple’s music division, which includes the iTunes Music Store, iPod services and accessories, accounted for $177 million of the first-quarter’s revenue, a 277 percent increase year-over-year.
Apparently in response to the release of these financial results, Apple’s stock (Nasdaq: AAPL) is up an impressive 11.82% to 73.20 in after-hours trading.
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1
Mac sales up 26%! While the overall PC market is only up 10%. Maybe Apple doesn’t need the Mac Mini after all…
(Note that 60% of Apple’s revenue had nothing to do with iPods, iTunes, or music. That should dispel some myths.)
Posted by Nagromme on January 12, 2005 at 5:38 PM (PST)
2
Indeed, and imagine what the Mac mini will do for next year’s percentage! :-D
Posted by Jerrod H. in TX on January 12, 2005 at 7:29 PM (PST)
3
The whole thing is: this iPod hype (of which I am a victim too) makes Apple richer and me poorer.
Posted by elppadopi in Amsterdam on January 12, 2005 at 11:30 PM (PST)
4
a: hype implies the product does not live up to expectations, which I think the iPod does.
b: you’re only a victim if you let yourself be. that’s why sites like iPodlounge exist. become an informed consumer.
Posted by Brocktune in United States on January 13, 2005 at 5:51 AM (PST)
5
i just ended up reading this thread from a few months ago. really funny to read now after macworld. i would wager that many people will still offer gloomy forcasts and express disappointment in apple’s prospects.
http://www.ipodlounge.com/ipodnews_comments.php?id=5448_0_7_0_C
Posted by reverb on January 13, 2005 at 6:24 AM (PST)
6
“The plain truth is that Appple’s PC business is withering away, from a combination of classic Apple doffiness and also the same kind of benign neglect that killed its original monopoly cash cow, the Apple ][.”
:D
You may also enjoy reading all the people who said the original iPod was a disastrous mistake
http://forums.macrumors.com/showthread.php?s=&threadid=500
Posted by Nagromme on January 13, 2005 at 1:46 PM (PST)
7
In any trend you can expect deviations from the mean. To reverse the Mac’s decline in market share to where it was 5 years ago will require Apple to post >40% unit gains, quarter on quarter, for the next three years.
http://www.macobserver.com/article/2004/10/29.6.shtml
Here’s a thought experiment: Q32004 Dell was #1 vendor with 16.8%, HP following closely with 15% share, and Apple had 1.8%.
The average rise in unit sales was ~9%. Just to stay *even* with Dell in terms of an increase in unit sales, Apple would have to post ~100% unit sales growth. Just to stay even. It’s the law of small numbers.
For people who can think in exponential terms, figures like this tell their own tale.
Posted by Demosthenes on January 13, 2005 at 3:01 PM (PST)
8
Why does Apple have to stay even with Dell’s unit sales increase?
Apple has to sell Macs faster than people throw them away, and the number of Mac users will increase. Apple is doing FAR more than that—and they’re profitable. Even if Dell is bigger, and Microsoft too.
I just don’t see the doom and gloom
Posted by Nagromme on January 13, 2005 at 11:21 PM (PST)