iPod highlights from Apple’s Q2 financial conference call | iLounge News


iPod highlights from Apple’s Q2 financial conference call

MacMinute has listed highlights from Apple’s second quarter financial conference call with analysts and the press. Here is a list of highlights related to the iPod.

  • iPod gross margin was 23%
  • iPod mini gross margin 20%
  • Direct sales of iPods was 42% of total sales
  • 12,000 channels offering iPod
  • Best Buy continues to be strong player for iPod sales
  • Number of iPod mini complaints “extremely small”
  • 3G iPod is in reasonable supply/demand
  • iPod mini is not in supply/demand balance
  • iPod mini demand is “far exceeding supply that we had planned”
  • “We will reach a supply/demand balance by fiscal Q4”
  • “We will do whatever it takes” to get iPod mini in balance
  • Component constraint with iPod mini shortage—not production constraint
  • “Very minimal” iPod mini canibalization on iPod sales
iTunes Music Store highlights:
  • “Vast majority” of iTMS albums are still $9.99
  • Recent higher pricing result of labels
  • “We are charged a bit more on some albums by the labels”
  • HP has already shipped 300,00 desktops with iTunes pre-installed
  • “Small profit” from iTunes Music Store
  • “Very happy” with Pepsi promo; Expect news closer to 1 year anniversary

« iPod outsells Macs

807,000 iPods sold, up more than 900 percent »

Related Stories



I don’t care how you slice it, the iPod mini shortage isn’t a good thing for Apple.

Mine’s been on order since March, and it’s not scheduled to arrive until between May 6-22.  It’s a gift for someone, otherwise I’d cancel and wait for the next revision.


Posted by matthew on April 14, 2004 at 4:30 PM (CDT)


Why do the lables have to raise prices?  Don’t they relise that they have a good thing going and by raiseing prices people will just download from p2p again

Posted by Squirrel on April 14, 2004 at 5:53 PM (CDT)


“again”? i never stopped.

Posted by :O on April 14, 2004 at 6:12 PM (CDT)


So the iPod is basically runnig their buisness now :P

Posted by Adam on April 14, 2004 at 7:44 PM (CDT)


actually, it is running 42% of their business, less than half, i would think it would have more of an impact overall, but whateva

Posted by pues on April 14, 2004 at 8:18 PM (CDT)


Trucks are running part of Volvo’s business now.  Gee, their cars must be crappy.


Posted by dum on April 14, 2004 at 8:35 PM (CDT)


The big news for me is that Ipodminis are not selling at the expense of classic Ipods.

Posted by hhvuong on April 15, 2004 at 2:25 AM (CDT)


the nice thing is the comment ““Very happy” with Pepsi promo”. Last i Heard they were not so happy. Maybe they will beat the 100 million mark?

Posted by Jonathan Westin on April 15, 2004 at 2:29 AM (CDT)


I bet new iPods on the 28th for the 1 year anniversary

Posted by voodoo on April 15, 2004 at 3:27 AM (CDT)


Okay Apple, time to focus on your computers again. How about a graphics card that can compete with Wintel machines? I can’t stand it! I love your operating system, but you guys are not putting any pressure on the graphic card manufacturers, ATI and NVIDIA. Make ‘em keep up!

Posted by stylescraper on April 15, 2004 at 8:57 AM (CDT)


“Gross margin was 27.8 percent, down from 28.3 percent in the year-ago quarter.”

Not good.

Posted by Margins on April 15, 2004 at 9:40 AM (CDT)


Their next priority is to open iTunes store to the UK!

Posted by Kee-Lo on April 16, 2004 at 8:41 AM (CDT)


What percent of sales are the extended service plans?

Posted by dogofgod on April 16, 2004 at 9:42 AM (CDT)

If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods/iPhones/iPad or accessories, or if you sell or market iPod/iPhone/iPad products or services, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators.

Commenting is not available in this channel entry.
Sign up for the iLounge Weekly Newsletter


Recent News

Recent Reviews

Recent Articles

Sign up for the iLounge Weekly Newsletter


iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2014 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy