Apple's Plans Revealed in its Earnings

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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.

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