makes it sound like the word I heard on the radio a month or so back about ipod sales plateauing was at least a bit off-base. However, I do note Apple's warning about a decrease in sales for the next quarter. Oh, and hooray for Apple! It's always a good thing when a company increases sales, even by smaller deltas than in this release. John Willkie ----- Original Message ----- From: "Craig Birkmaier" <craig@xxxxxxxxx> To: "OpenDTV Mail List" <opendtv@xxxxxxxxxxxxx> Sent: Thursday, July 14, 2005 6:39 AM Subject: [opendtv] News: IPod Sales Give Apple 75% Jump in Revenue > http://www.nytimes.com/2005/07/14/technology/14apple.html?th&emc=th > > IPod Sales Give Apple 75% Jump in Revenue > > By JOHN MARKOFF > > Published: July 14, 2005 > > > SAN FRANCISCO, July 13 - Showing continued strong growth of its > popular iPod digital music player and impressive personal computer > sales in the United States, Apple Computer reported quarterly > earnings on Wednesday that far outpaced the expectations of financial > analysts. > > Apple said net income for its third quarter, ended June 30, rose to > $320 million, or 37 cents a share, from $61 million a year ago, or 8 > cents a share, adjusted for a stock split. > > The results surpassed the consensus forecast of analysts, which was > 31 cents a share. Moreover, revenue increased 75 percent to $3.5 > billion, from $2.01 billion during the quarter in 2004. > > The earnings report came after the close of trading, with Apple up 11 > cents a share, to $38.35, on Nasdaq. So far this year, the stock has > risen about 18 percent, after tripling in 2004. In after-hours > trading, the stock rose as much as 3.5 percent, to $39.70. > > "Over all it's great news," said Barry Jaruzelski, vice president for > communications and technology at Booz Allen Hamilton, a technology > strategy and consulting firm. > > "All of the speculation over whether the iPod has peaked has been > put to bed for at least a quarter," Mr. Jaruzelski said. > > Apple reported sales of 6.1 million iPod music players. IPod revenue > was $1.1 billion for the quarter, an increase of 16 percent quarter > to quarter and of 343 percent from year to year. The company also > pointed to a strong start for the latest version of its Macintosh OS > X operating system, named Tiger, which sold more than two million > copies during its first quarter of availability, with revenue of more > than $100 million. > > Apple said that sales of Tiger and other software programs > contributed significantly to its unexpectedly high gross margins: > 29.7 percent for the quarter, up from 27.8 percent a year ago. > > The chief financial officer, Peter Oppenheimer, also said that > quarterly sales of Macintosh computers had reached a four-year high, > with 1.18 million systems shipped, and that the company had sold > 495,000 notebook computers, a record. > > The company said that inventory levels for music players and > computers were within ranges it had forecast. > > The company's obvious enthusiasm for the quarter was tempered during > a conference call with analysts by what Mr. Oppenheimer referred to > as a "prudent" forecast of flat to slightly declining revenue for its > fourth quarter. > > "We are being prudent in our first quarter after our Intel > transition and expect to learn more during the quarter," he said. > > The cautious forecast caused a number of financial analysts to > question whether the company had experienced a decline in sales > during the quarter after announcing in June that it planned to switch > from I.B.M. to Intel for its processors. > > "We saw no obvious reduction in sell-through after the announcement," > said Timothy D. Cook, Apple's executive vice president for worldwide > sales and operations. > > But he stressed that the company had only several weeks of sales > data and expected to learn more about whether consumers would defer > purchases in the current quarter, which ends in September. > > "The question for the investor is, Do you want to worry about > something that is more than a year away?" said Richard S. Chu, a > financial analyst at the SG Cowen Securities Corporation. > > At the same time, he noted that his firm had recently conducted a > survey of 1,400 consumers and found evidence that iPod sales > translate into Macintosh sales. > > "We clearly feel there is a documentable halo effect," Mr. Chu said. > > Apple said on Wednesday that it believed that it was winning back > market share among education customers in the United States. > > It shipped 34 percent more computers to higher-education customers > than a year earlier, and 15 percent more computers to elementary and > secondary schools. > > Mr. Oppenheimer said that because the International Data Corporation > had forecast a decline in PC sales to schools this year, Apple's > share of the education market was apparently growing. > > Several analysts said that the most visible negative sign for Apple > was a 7 percent decline in sales in Japan. Mr. Cook said Apple was > working to improve its distribution channels there. > > > ---------------------------------------------------------------------- > You can UNSUBSCRIBE from the OpenDTV list in two ways: > > - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org > > - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line. > ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.