“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.
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