Thurrott: It’s starting to look like Apple’s iPod and Mac sales are leveling out

“Apple released its quarterly earnings figures this week, and the news wasn’t good. Though profits were up 41 percent $410 million, year-over-year, for the quarter ending March 31, Apple’s revenues fell short of analyst expectations. More important, iPod and Mac sales growth has fallen dramatically. This quarter, iPod sales grew 61 percent, but that pales when compared to the 558 percent growth the company experienced last year. Too, iPod sales were lower than expected: Apple shipped 8.5 million iPods in the quarter, not the 9 million plus many expected. Mac sales were even less impressive: Year over year, Mac sales grew just 4 percent to 1.11 million units. That’s slower growth than the overall PC industry, and much lower than the 43 percent gain the company made in the same quarter a year ago. Have Apple’s products leveled out? It’s starting to look that way,” Paul Thurrot writes for WinInfo.

Full article here.
And now for some common sense: iPod sales aren’t going to increase 558% year-over-year forever. That was for the ramp up. Apple is past the ramp up stage now. It’s hard to imagine anything more obvious. Whoops, already here’s something that’s even more obvious: Apple is transitioning Macs from PowerPC to Intel. Apple’s first Intel-based portable, the MacBook Pro, was available for only 4 weeks of the 13-week quarter. Apple iBooks, Power Macs and other models aren’t even transitioned, yet, and still, Apple sold more Macs year-over-year. Paul Thurrott needs to stick to chronicling Microsoft’s never-ending and constantly-compounding failures – he’s pretty good at that – because he has absolutely no clue about Apple. Leveling out? Ridiculous. Even a moron in a hurry can see that Apple owns the digital music player and music download markets and is now primed to dramatically accelerate Mac unit sales from this current quarter forward.

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Needham: Apple Mac sales could surge due to Boot Camp, newfound ability to run Windows apps – April 20, 2006
Thurrott: Microsoft collapsing under its own weight, Gates has driven Windows Vista into the ground – April 20, 2006
Apple figures suggest that 2006 may be very big year, thanks to Windows users switching to Mac – April 20, 2006
Analysts see Apple Q3 06 forecast as conservative, peg revenue estimate at $4.72 billion – April 19, 2006
Apple reports Q2 2006 earnings: $4.36 billion revenue, $0.47 earnings per share – April 19, 2006


  1. Numbers don’t lie MDN, regardless of how much you try and spin them.

    You’ve been spewing crap about how Apple’s computer growth is faster than that of the PC group. Turns out Apple is actually growing SLOWER than that of its PC counterparts. This past quater, you youurself reported most PC manufactured experienced strong growth. Apple’s 4% is paltry in comparison.

    MDN: Here’s a suggestion. Since OS X is much better than Win Blows, there’s no need to continually lie and mislead everyone. It ruins your credibility.

  2. profits are up 41% and iPod sales are up 61%…
    “the news wasn’t good”.
    We should all be so lucky to have news that is “not good” according to Thurrott. Let’s hope Apple continues down this “losing streak” and never comes out of it.


  3. You’re right, biggieG, numbers don’t lie. How about this number: “profits were up 41 percent $410 million, year-over-year”? It is possible have more units shipped and not make a profit. Apple simply had both. It was the second-best quarter ever for the company, just as was predicted by Apple.

  4. … isn’t the sharpest pencil in the box!

    … his elevator doesn’t quite reach the top floor!

    or whatever.

    His views are as much use as a “chocolate teapot”!

    or as a chocolate fireguard.

    I could go on and on, just like so-called anal-ysts.


  5. iPod sales for the 12 months ending 03/2006: 35.175 million
    iPod sales for the 12 months ending 03/2005: 12.767 million

    Annualised rate of growth between 2005 and 2006 (i.e not concentrating on a single quarter to prove a point that will please the advertisers that buy space in the magazine I ‘work’ for): 175%

    Jesus, only 175% – however will Apple survive; let’s ask Creative, no wait – that’s wrong. How about Rio? Ummm, no, maybe not! I know, Dell had some success – oh, fsck.

    Let’s focus on Mac sales!

    Mac sales for the 12 months ending 03/2006: 4.784 million
    Mac sales for the 12 months ending 03/2005: 3.828 million

    Annualised rate of growth between 2005 and 2006: 24.97%.

    So, the rate of growth is 25% – despite the fact that the iBook is past its prime, due for replacement, and even a moron in hurry knows that the Apple product line is in a state of flux.

    Mac revenue for the 12 months ending 03/2006: 6.472 billion
    Mac revenue for the 12 months ending 03/2005: 5.593 million

    Annualised rate of revenue growth between 2005 and 2006 (revenue growth not being a concept that many PC assemblers know much about): 15.7%.

    Paul Thurrott: once a scum-sucking, ignorant, ‘bought and paid for’, quasi-“rent boy” excuse for a journalist always a scum-sucking, ignorant, ‘bought and paid for’, quasi-“rent boy” excuse for a journalist.

  6. This guy should contact Disney to be the artist’s model should they care to make a sequel to “Chicken Little” Of course the iPod will level-off at some point, but did all the ANALysts expect Apple to match the 14 million sold last quarter(Christmas Season)? 8.5 million is still better than what the other guys are selling.

    word=increase, as in increaseThurrot”s meds, he’s babbling again

  7. Oh, and one other thing…

    iPod, according to NPD has increased its US market share to 78%.

    4 out of every 5 customers who want a portable music player want an iPod, and the other 1 was probably given the fugly thing they use by a cheapskate relative.

    BTW, MDN – when your ads start malfunctioning and obscuring the ‘magic word’, you’ve probably got a problem.

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