Apple's Plans Revealed in its Earnings

apple
I'll try to focus on technology in assessing Apple's quarterly financial report.

From Apple's Press Release:

* Revenue of $8.34 billion and a net quarterly profit of $1.23 billion or $1.35 per diluted share

* Gross margin was 36.3 percent, up from 34.8 percent in the year-ago quarter

* Apple sold 2.6 million Macintosh® computers during the quarter, representing a four percent unit increase over the year-ago quarter

* Apple sold 10.2 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter.

* Quarterly iPhones sold were 5.2 million, representing 626%(!!!) unit growth over the year-ago quarter.

What does this mean?

Apple has internally forecasted the demise of the iPod classic, Nano and Shuffle -- replaced with the iPhone and iPod Touch.

Grew 4% vs. industry drop -3% to -5%

New Category: "Pocket Products" = iPhone, iPods

Apple uses 3% of worldwide Flash RAM. Purchased $500 million worth ahead of time

France Apple Store will open during the holiday quarter. On track to 25 new stores this year.

Apple made a huge payment to Toshiba for NAND Flash (not Toshiba).

Apple is selling iPhones at the rate of much over 20 million/year

They aren't able to meet demand for iPhone 3GS

MacBook Pro is also a bit behind supply but catching up. Demand for low-priced MBP caught Apple off guard

Tim Cook: "MOST of the carriers are good relationships." When asked about U.S., mentioned "carrierS"

20% of Fortune 500 have purchased 10,000 or more iPhones, lots of big universities too.

Tim Cook talks about netbooks. Apple isn't going to build a $399-$499 Netbook

China iPhone: Within a year - priority project

This story, "Apple's Plans Revealed in its Earnings" was originally published by Computerworld.

To comment on this article and other PCWorld content, visit our Facebook page or our Twitter feed.
Shop Tech Products at Amazon
Notice to our Readers
We're now using social media to take your comments and feedback. Learn more about this here.