[7/13/2005, 10:17pm EDT: The following article is being brought to the top to highlight an amazing journalistic misstep made by Bloomberg News earlier today. The original article as posted on MacDailyNews exactly 12 hours ago at 10:17am EDT in italics.]
“Apple Computer Inc.’s iPod shipments probably dropped in the third quarter from the second, the first decline in more than two years and a sign the surge in demand for the music players may be waning,” Bloomberg reports. “Apple, which made its name selling Macintosh computers, will say today iPod shipments dropped to 5.29 million in the three months ended in June from 5.31 million in the second, according to a Bloomberg News survey of eight analysts. Sales of the iPod, which generated almost one third of Apple’s $3.24 billion in revenue, are up sixfold from 860,000 a year earlier.”
Bloomberg reports, “The drop in iPod shipments reflects a lack of new models and disappointing appetite for the shuffle player, a low-cost model unveiled by Chief Executive Officer Steve Jobs in January.”
Full article here.
MacDailyNews Take: What drop in iPod shipments? Is this a time warp? Is the market closed already?
We surveyed eight analysts once: they told us Apple Computer would be dead in a year. That was 10 years ago. How about we wait for the actual results from Apple due at market close today before making proclamations, okay?
MacDailyNews Take Update: 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. 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.
Related MacDailyNews articles:
Wall Street wants to see Apple grow iPod unit sales – July 13, 2005
Comprehensive survey shows ‘iPod Halo Effect’ is increasing Apple Mac sales, market share – July 12, 2005
Smartmoney.com article sounds stupid about Apple’s ‘iPod Halo Effect’ – July 12, 2005
SG Cowen survey shows evidence of a significant iPod halo effect boosting Apple Mac sales – July 12, 2005
Analysts expect Apple to post $3.33 billion in revenue for Q3-2005 on July 13 – July 07, 2005
Merrill Lynch: Mac sales ‘appear robust,’ expects futher evidence of ‘iPod Halo Effect’ – July 07, 2005
BofA raises Apple earnings estimates, forecasts 5.4 million iPods, 28-percent Mac growth for quarter – July 07, 2005
TheStreet.com dubiously concludes that iPod demand has slowed, could impact Apple earnings – July 06, 2005
J.P. Morgan raises Apple estimates based on ‘more optimistic’ Mac shipments – July 05, 2005
First Albany raises Apple earnings, sales, iPod forecasts, cuts Mac mini forecast – July 05, 2005
Apple to webcast third quarter 2005 financial results conference call on July 13 – July 05, 2005
RealMoney: Apple’s iPod Halo Effect ‘quite profound,’ Macs taking good market share from Wintel – June 27, 2005
Morgan Stanley: Apple’s ‘iPod Halo Effect’ is ‘roughly double what the market expects’ – March 18, 2005
You have to position ourself on one side the results. They just went on the safe side.
They are irresponsible for reporting this. Their lack of true knowledge affects those who own stock. IF this info is indeed false and the stock drops, we should sue Bloomberg.
MW see, as in why don’t they just wait and see what the truth is instead of talking out their backsides.
sure enough this “news” has caused a drop in the stock price
MW inside, as in perhaps they have inside information.
The essential question for Apple’s future (not for Wall Street) is: how many Pc’s in this quarter?
More than 1,300,000 (my guess) very good
More than 1,150,000 good
Less than 1,100,000 bad
I wouldn’t be surprised if there was a drop in iPod sales against last quarter. This past quarter doesn’t have the Christmas selling season in it and it would be foolish to think Christmas didn’t have an impact on sales.
If iPod sales are CLOSE to the Christmas quarter it will be a significant achievement – just as any retailer.
Be happy with anything over 5 million units on the iPod side and watch how the Macs are doing. Tiger sales will also be a good indicator of how things are going.
Ken – You may need to check your callendar:
this quarter – April (4) – June (6)
Last quarter – Jan (1) – May (3)
Christmas – December(12)
As for the MDN editorial staff – I feel that editing out people’s comments is bad, but adding your own responses, re: “Because it was a one hour test” is even worse.
There was NO REASON to editorialize my post. I dind’t use vulgarity or insults, I was stating _facts_. As a regular visitor and poster, who makes insightful comments if I do say so myself, your actions are drving me away. It makes me question if the other posts I read are as the author wanted them, or as MDN wanted them.
my magic word is “Training”
Prices almost always drop at just before the reporting. It’s profit taking. Then if news isn’t that bad, the buying will begin in time.
me,
Why don’t you use the “Contact” button to voice your displeasure over a one hour ad test. And WTF are you to tell MDN what ads they can run? Are you paying for their hosting and operational costs?
If you don’t allow your email address in your posts and you don’t email MDN, how are they supposed to interact with you besides via your posts?
Bud – “WTF are you to tell…” … you’re right. I’m nobody, just “me”, which is exactly what I said in a post that was deleted days ago when the ad test was used. I actually posted more comments about how I understand the need to generate revenues, etc.
You know what else I said? I said that MDN doesn’t have original content and that Ad revenue only comes when people visit the site. I don’t say for it, but I do visit it – alot – and I follow the click ads too – because I want to support MDN.
But you know, the times, they are a changing. I’ve left my legacy by getting people to start stating what their Magic Word is (I was the first, take a look if you don’t believe me). I guess that’s enough. I’ll move on. MacObserver.com is a good site…maybe I’ll switch to that a primary mac news source.
catch you later…
my MDN magic word is “are”
me,
No offense, you have the right to your opinion, of course, but MacObserver is to MacDailyNews as Windows is to Mac OS X.
MDN MW: “program”
last quarter had the introductory sales of the shuffle. So an introductory spike in sales. This 3rd quarter was based on demand and the fact that it held up sales well after the introduction of new product bodes well for the 4th quarter and the x-mas quarter.
2nd and 3rd quarters are usually WEAK quarters and the fact that they match the 1st quarter (x-mas) is still excellent.
Well, I bought an iPod Shuffle 1Gb for my daughter for her Birthday. I don’t know if there’s a drop in demand, but I ordered it Friday and got it today.
“No offense, you have the right to your opinion, of course, but MacObserver is to MacDailyNews as Windows is to Mac OS X.”
Thats an absolutely ridiculous statement. MO is a fine Mac site and dare I say has more original content than this site does. I like the MDN Take on things at the end of each article, but thats hardly original content.
hammer,
The MDN Takes are the exact definition of “original content.”
Fred,
Ok Fred, whatever. Let’s try some original ARTICLES, is that better. Point is to call out another Mac website as the Microsoft of Mac websites is ridiculous when they offer a lot MORE original content than just a few sarcastic quips at the end of each news story.
Don’t get me wrong, I LIKE the sarcastic quips. They are usually right on. Im just stating that the above poster’s comment was off target. Stay on point.
hammer,
Click “opinion” and you’ll find some of the best original content on the Mac web. SteveJack’s original articles for MDN are often very far ahead of the curve, insightful and thought-provoking, too, IMO.
Those other sites do little more than MDN, they just do “book reports” of other articles instead of quoting them directly. I prefer MDN’s style, MDN’s Takes, and the way all of our comments add original content to the whole ball of wax.
TMO is okay. It’s just not MDN which I prefer.
Bloomberg is looking rather silly right about now.
Not as silly as the people they polled…
TMO fucking sucks…why are we even talking about that suck ass site on MDN anyway?
That is not analysis. That is conjecture.
I proclaim air will be 5% less gassy than last year at this time. News at 11.
I can’t wait to see what Bloomberg does about this.
” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> Should be fun. Who has the popcorn?
RevNeal.. this is so annoying they are wrong.. A LOT.. analysts in general.. does anyone care? No.. here’s what I say..
I hope they told their clients to sell Apple and they are getting yelled at as we speak.
The people at Bloomberg are either incompetent or malicious. Pick one, fellas. There’s really no other explanation.
Hey gang. Remember when Apple was “going out of business” or was “dying” or whatever?
BITE ME!
What a great legacy, this Apple Computer, Inc.
Beleaguered. Woe is me.
MW: Tried. They tried predicting the demise of Apple in the nineties, and they’ve been failing at it ever since. Why should they stop now? Eventually, they’ll be right. But then again, maybe eventually dinosaurs (or some form of) will roam the earth again. Perhaps by the time that happens Apple will close its doors.