iPod highlights from Apple’s Q2 financial conference call

Updated
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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
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Dennis Lloyd

I'm a passionate, long-time lover of Apple products, and was a civil draftsman and graphic designer before creating the iLounge web site. My prior projects include work for The Los Angeles Times' LATimes.com, and the company Creative Domain, where I developed websites for clients including Columbia Pictures, Disney, Fox Studios, Universal Pictures and Warner Brothers. As the Publisher of iLounge, I direct the site's community forums, photo galleries, iPod User Group, and general business affairs, which have grown under my watch to over sixteen million page views every month. I'm happily married with one daughter, one dog (Rocket the Wonderdog), one cat (Ferris), many iPods, iPhones, iPads, and two turntables.
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