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

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