“Apple Computer Inc. probably will report today that annual profit topped $1 billion for the first time as sales of the iPod music player fueled revenue and buoyed demand for the company’s computers,” Bloomberg reports. “Earnings quadrupled to $1.23 billion, or $1.44 a share, in fiscal 2005 as sales surged 69 percent to a record $14 billion, according to the average estimate of 25 analysts in a Thomson Financial survey. Apple will say fourth-quarter profit more than tripled to $321.8 million, or 37 cents a share, analysts estimate. Sales probably soared 59 percent to $3.74 billion.”
Bloomberg reports., “Apple may have sold as many as 8.5 million iPods in the quarter, according to a Bloomberg survey, allaying concern that demand has peaked and conveying more interest in Macintosh computers. Chief Executive Officer Steve Jobs released the pencil- thin iPod Nano in September, and Cupertino, California-based Apple may unveil a model that also plays videos tomorrow. Apple may have shipped a record 6.7 million to 8.5 million iPods last quarter, according to a Bloomberg survey of eight analysts. That’s up from 6.16 million in the third quarter.”
“Sales of Macintosh personal computers likely jumped 40 percent to 1.17 million units as buyers of iPods also purchased Macs, said Merrill Lynch & Co. analyst Richard Farmer in New York. That would mark the fourth straight quarter Mac shipments have topped 1 million machines,” Bloomberg reports. “Mac revenue this quarter may have increased 25 percent to $1.54 billion, Farmer said. Apple and PC makers such as Dell Inc. and Hewlett-Packard Co. benefited from back-to-school demand for notebook computers, UBS AG analyst Ben Reitzes in New York said.” [Note: Apple shipped 836,000 Mac units and 2,016,000 iPod units in the quarter September 25, 2004.]
“Apple is hosting an event in San Jose, California, tomorrow to introduce ‘one more thing,’ a phrase Jobs, 50, often uses before showing new products. Jobs may offer an iPod video player, analysts including Piper Jaffray Cos.’s Gene Munster in Minneapolis said. Jobs also may display new Macs,” Bloomberg reports. “iPod is the best-selling digital music player in the U.S., accounting for 72 percent of all devices sold this year through August, according to NPD Group Inc. in Port Washington, New York. Apple’s closest rival, SanDisk Corp., won 5 percent of the market.”
Full article here.
We’ll know all of the numbers for sure after the closing bell today.
Related articles:
Anticipation excruciating as the perfect Apple storm looms – October 09, 2005
Anticipation builds for October 11 Apple Q4 05 earnings report, analysts expect strong Mac sales – October 06, 2005
Apple invites media to ‘One More Thing’ special event on October 12 – October 04, 2005
Apple to webcast Q4 05 earnings results conference call on October 11 – October 03, 2005
One thing that is so great is that these numbers give credibility to the Halo Effect. It is one thing to sell a 200 mp3 player, it is quite something else to sell a 2000 laptop.
The massive earnings increases also help to offset the high PE (currently 42) for AAPL. The lower the PE, the faster the stock will leave the $50’s and head higher.
oddly enough, my MDN word is “growth”
1.17m Macs would actually be down slightly from the 1.18m sold last quarter. I’m betting it’ll be at least 1.25m this quarter. As for the iPod, anything over 8m would be absolutely stellar.
And as MDN points out, we’ll know for sure at 4:30pm ET today.
Since late early August I have been forecasting:
CPUs sold 1.364 Million
iPods sold 7.022 Million
Gross revenue 3.927 Billion
EPS 43¢
BTW, MDN has been acting strange this morning (third attempt at posting). Anybody else having problems with the site?
Off topic but I have to ask.
What’s all that fuss with ‘MDN word’? Why care?
The site is VERY slow today…??
Jeff asked:
What’s all that fuss with ‘MDN word’? Why care?
Because, it seems, the serendipitous nature of these “Magic Words” is often undeniably, amazingly, cosmically coincidental!
Celebrate your connection with the universe.
Worship the “Magic Words”!
Jeff,
I have often wondered the same thing. I guess it’s similar to all the fuss about having the first post. I don’t understand the excitement about either.
Magic word exists at sites which allow comments to prevent “spam bots” from posting rubbish. These bots cannot see the MW, and the MW is a “filter” for those who physically read the site. The mystical qualities of these words are just a side benefit,,,
Read the article excerpts above and count the number of times the words “may”, “probably” and “estimate” occur. Shows me that analysts are more accurately called salesman. Answering a question without actually committing to an answer.
MW-want, as in “I want my RDF”
what iPod Halo Effect? I see no evidence of that. Global Warming? Hogwash.
BTW, MDN has been acting strange this morning (third attempt at posting). Anybody else having problems with the site?
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Uh, they’re slammed because people come here for news on a HUGE week?
I know the purpose of the magic word, I just don’t understand the fascination with making such a big deal of them or having first post.
I love the first post-posts for their childishness. Usually they’re second or third. The first-post-posters are definetly connected to their inner children. It’s so silly it’s touching. Personally I’d rather be caught dead than write “First post!!!!!”. But that’s because I’m so stuck up and grown up. Long live the uninhibited first-post-guys!!!
PS. First Post!!!! (wow I did it!)