Report: Apple gained significant market share of computer industry during past quarter

“Buoyed by a surge in sales of both iPods and Macintoshes, Apple Computer on Wednesday reported first-quarter earnings that soared past expectations,” Ina Fried reports for CNET News. “The Mac maker earned $295 million, or 70 cents per share, on revenue of $3.49 billion. That compares with earnings of $63 million, or 17 cents per share, on revenue of $2 billion in the same quarter a year ago.”

Fried reports, “Analysts said that the new $499 Mac Mini should help the company convert many of those iPod buyers into Mac users. ‘We believe the Mac Mini will increase the percentage of iPod-toting Windows users who purchase a Mac by almost threefold,’ Needham analyst Charles Wolf said in a research note ahead of Wednesday’s earnings report. Mac sales rose significantly last quarter. The company sold 1,046,000 Macs, up 26 percent from last year. Analysts have been projecting a rise for the computer industry as a whole of about 10 percent, meaning Apple gained significant share during the quarter.”

“Sales of the iMac were particularly strong, as Apple redesigned the product around a G5 processor. The product accounted for $620 million in revenue, up 187 percent from iMac sales in the prior quarter and up 147 percent from a year ago. iBook sales were also up in the quarter, but sales of the Power Mac and PowerBook were down from a year ago,” Fried reports. “The company’s forecast for the coming quarter also was higher than prior analyst predictions. Apple projected revenue of about $2.9 billion and earnings per share of about 40 cents. Analysts had been looking for revenue of $2.75 billion and earnings of 33 cents per share.”

Full article here.

MacDailyNews Take: No iPod Halo Effect, eh? Glad we’re not WindowsDailyNews for more reasons than one.

Related MacDailyNews articles:
Apple posts net profit of $295 million on $3.49 billion revenue, highest in Apple’s history – January 12, 2005
IDC VP Roger Kay sees no evidence of Apple ‘iPod Halo Effect’ based on ‘Apple’s desktop share’ – January 10, 2005
Dvorak calls Mac market share ‘stagnant’ when numbers really show Mac market share growth – December 29, 2004
Signs point to Apple adding to their 30 million Mac users via ‘iPod Halo Effect’ – October 26, 2004

25 Comments

  1. Apple said in the conference call that the PowerMac will not reach the 200,000 unit level in any quarter ever again. It’s clear that the iMac G5, they said, has taken away sales, particularly to those who had a G4 PowerMacs.
    In a way this is too bad, as the PowerMac is the most profitable of all of Apple’s CPUs. However I would think that growth in the server market could eventually help the higher end sales. Dispite the Mac geeks desire for power and more power the general public is no longer concerned with that as much as before. They just one computers that work….. and that’s where, in my opinion, Apple is going to benefit with the iMac and Mac mini.
    This is a great time for Apple. The second coming, so to speak.

  2. Actually, this is the flip side of proper market segmentation.

    I used to argue (on AI) that Apple needs to broaden its reach so that products were available to cover the low-end consumer (which is obviously high-volume) and the “true” workstation user who needs a four-way system with high-end graphics performance.

    I always view this as a classic pyramid: simplistically 40% of the market only needs 10% of the functionality available, 30% needs 30%, 20% needs 60% and only 10% of the market needs 100% of the functionality and power.

    Mac mini is now available to address the bottom segment, and the iMac/Book addresses the next segment up.

    What needs to happen next is that the PowerMac range splits to address the needs of what I’ll call 2D and 3D professionals in slightly different ways.

    Appropriate segmentation is the best thing in the world, simply because it creates appropriate demand for each product class and removes excessive pressure from the market.

  3. Apple is on a roll!

    What was the name of that insignificant, pathetic and dead company from Redmond??

    Go for it Apple!!!

    Magic word is ‘costs’ – as in lack of innovation from M$ costs them user market share!

  4. “What needs to happen next is that the PowerMac range splits to address the needs of what I’ll call 2D and 3D professionals in slightly different ways.”

    Totally agree with you, MCCFR. Apple hasn’t been at all aggressive on the high-end. There is no reason PowerMac sales can’t be higher, but Apple needs to offer true workstation class hardware. Like quad processors. EEC RAM. The most powerful graphics cards available. Right now, they are essentially coasting with the PowerMac.

    Still, all in all, a very SPECTACULAR quarter!

  5. “Not sure if it is iPod Halo Effect, or Windows Malware Effect”

    One could argue that they’re different sides of the same coin. The realization that the Windows malware ecology has become intolerable, coupled with the realization that there is a ready alternative to the suffering.

  6. “The product accounted for $620 million in revenue, up 187 percent from iMac sales in the prior quarter and up 147 percent from a year ago.”

    Wow. (magic word: beyond)

  7. I think most potential buyers of the G5 are waiting until the last possible moment hoping for a dual 3+ machine though Apple seems to be doing a great job selling Xserve’s & XSan’s so …

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