iLounge

By Charles Starrett

Senior Editor, iLounge
Published: Wednesday, April 25, 2007
News Category: Apple

Reporting its second quarter financial results today, Apple said it shipped 10.549 million iPods during the quarter—slightly below some analyst predictions, but a 24 percent increase compared to the same quarter last year. The company posted revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, compared with revenue of $4.36 billion and net quarterly profit of $410 million, or $.47 per diluted share in Q2 2006. Sales of Other Music Related Products + Services were up 35% over last year’s quarter and 3% over the last quarter of 2007, to $653 million total. That category includes iTunes Store sales, iPod services, and revenues from Apple and third-party iPod accessories.

“The Mac is clearly gaining market share, with sales growing 36 percent—more than three times the industry growth rate,” said Steve Jobs, Apple’s CEO. “We’re very excited about the upcoming launch of iPhone in late June, and are also hard at work on some other amazing new products in our pipeline.”

“We are very pleased to report the most profitable March quarter in Apple’s history,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter of 2007, we expect revenue of about $5.1 billion and earnings per diluted share of about $.66.”

Analysis of the company’s figures showed significant double-digit year-versus-year growth in all regions in which Apple operates, except for Japan, which experienced single-digit declines versus the year-ago quarter, and a modest decrease in revenue relative to the prior 2007 quarter.

Updated: During Apple’s Financial Results Conference Call, Apple revealed that iTunes controls 85% of the U.S. market based on the latest data from Nielsen Soundscan. Peter Oppenheimer, Apple CFO, added: “iPods accounted for 44% of total revenue during the quarter… iPod shuffle was especially popular” based on the release of four new colored shuffles in early 2007. Apple also reaffirmed the timing of iPhone outside the US. Europe will see it in the fourth calendar quarter of 2007, and Asia in 2008.