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
- “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
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