[juanvaldes]

Well NN decided to eat Eug's post but here is the headline.

Press Release

CUPERTINO, California—July 13, 2005—Apple® today announced financial results for its fiscal 2005 third quarter ended June 25, 2005, reporting the highest revenue and earnings in the Company’s history. Apple posted a net quarterly profit of $320 million, or $.37 per diluted share, and revenue of $3.52 billion. These results compare to a net profit of $61 million, or $.08 per diluted share, and revenue of $2.01 billion in the year-ago quarter, and represent revenue growth of 75 percent and net profit growth of 425 percent. Gross margin was 29.7 percent, up from 27.8 percent in the year-ago quarter. International sales accounted for 39 percent of the quarter’s revenue.


Apple shipped 1,182,000 Macintosh® units and 6,155,000 iPods during the quarter, representing 35 percent growth in Macs and 616 percent growth in iPods over the year-ago quarter.


“We are delighted to report Apple’s best quarter ever in both revenue and earnings,” said Steve Jobs, Apple’s CEO. “The launch of Mac OS X Tiger has been a tremendous success, and we have more amazing new products in the pipeline.”


“We’re very pleased to report 75 percent revenue growth and a 425 percent increase in net income,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth quarter of fiscal 2005, we expect revenue of about $3.5 billion and earnings per diluted share of about $.32.”

The talking money heads are calling this Apples best quarter ever. Also while it has only been a month since the intel announcement it appears to have made no impact on mac sales at all as they were up still up 35%.

So Macs are up, iPods are still up, things are going well in Cupertino.

[ManOfSteal]

Way to go Apple!

[mitchell_pgh]

I thought there would be a minimum of a dip in Mac sales considering the Intel switch.

Awesome!

[juanvaldes]

Originally Posted by mitchell_pgh

I thought there would be a minimum of a dip in Mac sales considering the Intel switch.

Awesome!

Thats what all the tech people thought but we have to remember even with the small share apple has (thus IMO overall more aware customers) people who follow tech make up a insignificant percentage.

Next quarter will tell the real story though, who knows maybe they made all those sales before the intel announcement. I have to say though virtually every mac in the current line is old and stale, I'm amazed they did so well without any product updates.

[Obi Wan's Ghost]

Originally Posted by mitchell_pgh

I thought there would be a minimum of a dip in Mac sales considering the Intel switch.

I think most people on the street who walk into an Apple store don't know or care. It's only us hardcore give us a 10ghz Power Mac guys who throw arms up.

[ironknee]

so how many ipods is that so far? is it up to 20 mil?

go apple go

[Obi Wan's Ghost]

Originally Posted by ironknee

so how many ipods is that so far? is it up to 20 mil?

go apple go

22-25.

[Eug Wanker]

I predicted the announcement wouldn't be this positive. I thus predicted the investors would do the usual "sell on news", and AAPL would go down. So I didn't buy the stock before the announcement.

[OldManMac]

Originally Posted by ironknee

so how many ipods is that so far? is it up to 20 mil?

go apple go

Apple said it was 20 million.

[Hawkeye_a]

Great going Apple All that hard work is starting to pay off.

I think once they start migrating to intel, sales will start skyrocketing. I compare it to when the iPod and iTunes came out for Windows. Everyone wants it.

Good times coming to Apple

[FulcrumPilot]

They should buy amd with all that monay they make these days!

[Eriamjh]

Apple is doomed!

[ironknee]

souldn't we see the mac os gain marketshare? even of it's .5

[Ghoser777]

It's hard, though not impossible, to gain marketshare when your competitors sell more computers than you.

[Don Pickett]

Originally Posted by ironknee

souldn't we see the mac os gain marketshare? even of it's .5

Depends on the total number of computers sold.

[Hawkeye_a]

Originally Posted by ironknee

souldn't we see the mac os gain marketshare? even of it's .5

Inorder to gain marketshare in any one quarter, Apple will have to sell more computers(with MacOS) thank all it's competitors combined. Not an easy task....thats whats confined the Mac to a dwindelling market share.

[Eug Wanker]

Originally Posted by Hawkeye_a

Inorder to gain marketshare in any one quarter, Apple will have to sell more computers(with MacOS) thank all it's competitors combined.

Uh, no.

[Ghoser777]

For example:

Let's simplify the world down a little bit:

PCs: 9900
Macs: 100

Mac marketshare would be a mere 1%.

All that Apple would need to do to increase marketshare is satisfy this equation:

CurrentApples/(CurrentApples + Current PCs) < (CurrentApples + NewApples)/(CurrentApples + Current PCs + NewPCs + NewApples)

i.e.

100/(9900 + 100) < (100 + NA)/(100+ 9900 + NP + NA)

.01 < (100 + NA)/(10000 + NP + NA)

100 + .01NP + .01NA < 100 + NA
.01NP < .99NA
NP/99 < NA

So if there were 990 new computers sold, for apple to gain marketshare, it would need to only sell more than 10 computers!

Why shouldn't this be surprising? Because all you have to do to increase your marketshare is sell more as a percent of the sales of the current quarter. So if you current marketshare is x%, you have y% marketshare in sales for the quarter, and y>x, your marketshare automatically goes up!

[Hawkeye_a]

Originally Posted by Eug Wanker

Uh, no.

Oh yeah...my bad.

Talking percentages.....

Assuming Apple's market share is 5%, and wintel is 95%, then...
for Apple to increase market share the following quarter,
of all comupters sold that quarter(Mac + wintel = 100%), Mac sales should account for more than 5%.

If Mac sales account for less than 5%(or whatever the mac market share is) of all computers sold during any interval of time, Mac market share goes down.

Cheers

[JoshuaZ]

Wait... you mean Apple sells things OTHER then iPods? Dude, when did they start doing this?

[Lancer409]

iono
.... josh ... like ... a WHILE ago...

i'm still jonesing over my ipod SOCKS! lol

[michaeljohn63]

Originally Posted by ironknee

souldn't we see the mac os gain marketshare? even of it's .5

According to the actual quotes I read in an article linked on MacNN's main page, Apple's Macintosh unit sales growth significantly exceeded overal PC unit sales growth. That necessarily means that the Mac marketshare was greater this past quarter than it had been. By how much, I can't say. but I'd say its quite a bit (because Apple's marketshare right now is so small, a relatively small number of unit sales growth can have a big impact on Apple's marketshare).

I do know this. Apple sold roughly 1.2 million Macs last quarter. For several previous years, Apple had been selling 750K to 850K computers per quarter. So, last quarter amounted to something like a 50% plus gain in unit sales over the same quarter last year, and a 30% plus gain over the previous quarter. There is NO WAY overal PC unit sales growth came close to that. I think PC unit sales growth was in the 5-10% range. If true, then last quarter, Mac sales accounted for 20-25% more of the total. Thus, if Mac marketshare had been 3%, it is now somewhere between 3.75 and 4%. Not much, but every bit helps, and you gotta start somewhere.

My continuing hope for Mac sales is less related to Marketshare, but more related to total sales, to spur software development on our platform. So, I'd like to see Mac sales reach and hover around 10 million Macs per year, which I think would put Macs in about an 8 or 9% Marketshare. More than that, and I'd worry that Apple would be so big, someone would buy them, and destroy our "little" community. Less than that, and software development stagnates or withers eventually.

[Krypton]

Rumour has it that half of the iPods sold were Shuffles; i.e. the demand for HD mp3 players is starting to wane.

[Anand]

10 million macs per year would be fine. Currently, how many have they sold per year? Have they ever moved 5 million per year?


What they should do is put some version of OS X onto the iPod. You get people hooked on the OS which make the move to the computer easier.

[TETENAL]

Sure. OS X on a Shuffle would definitely get people hooked to the OS.