Apple Revenue and Earnings Surge to Records

Discussion in 'Apple' started by Lee Scoggins, Apr 13, 2005.

  1. Lee Scoggins

    Lee Scoggins Producer

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    Looks like Apple is having a lot of momentum right now and getting many to switch from iPod to Mac:

    Apple today posted a net profit of $290 million, or $.34 per diluted share for its fiscal 2005 second quarter ending March 26, 2005--with increased revenue of $3.24 billion, which was up 70 percent from the year-ago quarter. The results compare to a net profit of $46 million, or $.06 per diluted share, in the year-ago quarter and beat analysts' profit estimates by 10 cents per share and ahead of their projected $3.18 billion in revenue. Gross margins were 29.8 percent, up from 27.8 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue. Apple said it shipped 1,070,000 Macs and 5,311,000 iPods during the quarter, representing a 43 percent increase in CPU units and a 558 percent increase in iPods over the year-ago quarter.

    "We are delighted to report a record second quarter for Apple in both revenue and earnings," said Steve Jobs, Apple's CEO. "Apple is firing on all cylinders and we have some incredible new products in the pipeline for the coming year, starting with Mac OS X Tiger later this month."

    "We're very pleased to report 70 percent revenue growth and a 530 percent increase in net income," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the third quarter of fiscal 2005, we expect revenue of about $3.25 billion and earnings per diluted share of about $.28."
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    In its March quarter, Apple shipped more than 1 million Macs and more than 5 million iPods. Apple's iPod shipments surged dramatically by 558 percent from the year-ago quarter and sequentially from the December/holiday quarter by 16 percent. The expected post-holiday season drop was offset by the introduction of the lower-cost iPod shuffle, which also decreased iPod revenue sequentially by 16 percent. Apple reported both Mac unit and revenue increases from the year-ago quarter in Mac shipments in of its five operating segments, including the Americas (32% unit, 64% revenue), Europe (48% unit, 57% revenue), Japan (48% unit, 57% revenue), Retail (106% unit, 115% revenue), and Other Segments (29% unit, 70% revenue), which includes Asia Pacific and its FileMaker unit.

    Three of the four Apple product lines saw increases unit and revenue: iMac (115%, includes eMac and Mac mini), iBook (25%), and PowerBook (43%)However, the company's Power Mac unit sales (including the Xserve line) decreased by 19 percent from the year-ago quarter to 141,000, generating 8 percent less revenue in the quarter. Apple also saw sales increases in its other product segments: Other Music Products increased by 22% (iTunes Music Store and iPod-related accessories) and Software & Other increased by 12 percent, while its Peripherals and Other hardware sales decreased slightly by 1 percent.

    Also just in from SpyMac:

    MP3 market looks bright for Apple
    04/13/2005 09:19 | Judy Westcott


    Apple Computer will continue to dominate the MP3 player market, which is projected to grow from an installed base of 16.2 million last year to 56.1 million by 2010.

    JupiterResearch, a division of Jupitermedia Corporation, today reported that U.S. shipments of MP3 players will grow 35% to 18.2 million in 2005 and maintain a compound annual growth rate of over 10% through 2010, reaching an installed base of 56.1 million by then, up from 16.2 million in 2004. MP3 players will reach critical mass this year, fueling demand for digital music services and stores.

    "Apple shows no signs of losing momentum," said Michael Gartenberg, VP and Research Director at JupiterResearch. "The iPod is a consumer phenomenon. Apple dominates this sector and will dominate portable MP3 player growth over the medium term," added Gartenberg. Mostly due to the iPod's success, JupiterResearch has raised its near-term forecast, but projects that flash-based player shipments will surpass those of hard-drive models in 2007.

    The forecast appears in the newly published report, "U.S. Portable Music Device Forecast, 2005-2010."

    *****From interview with Oppenheimer, Apple's CFO, discussing switchers from Windows*****

    ``In our retail stores, low to mid-40 percent of the people who are buying Macs haven't owned a Mac before,'' Oppenheimer said in the interview. Apple views that at as a sign that it is winning over users who have traditionally bought lower-priced Microsoft Corp. Windows-based PCs, he said.
     
  2. Scott L

    Scott L Producer

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    Well deserved imo. I wub my ipod.
     
  3. Pamela

    Pamela Supporting Actor

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    A dual G5, a new ipod, various and sundry items at the Apple Store . . . I'd like to think I'm partially responsible for Apple's fiscal success this past quarter! [​IMG]
     
  4. Lee Scoggins

    Lee Scoggins Producer

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    I know what you mean Pamela...I have dropped $2K in 2 months and I am much happier for it. [​IMG]
     

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