“The growth of iPod sales is slowing but Apple Computer Inc. may surprise investors with strength from its original business — computers — when it posts quarterly results on Wednesday,” Duncan Martell reports for Reuters.
Martell reports, “With more than 75 percent of the U.S. market for digital music players, there’s limited room for growth in iPod market share. But there is plenty of room to boost Apple’s original business, selling the Macintosh computers known for their industrial design and included package of media software. ‘We see continued strength in the Mac business, which was very strong last quarter,’ said American Technology Research analyst Shaw Wu.”
“Overall, Wall Street analysts expect Apple to earn 51 cents per share, on average, within a range of 49 cents to 55 cents, on revenue of $4.66 billion, according to Reuters Estimates,” Martell reports.
“UBS analyst Ben Reitzes expects Apple to ship 8.12 million iPods in its fiscal fourth quarter, which would be an increase of 26 percent from a year ago, he wrote in an October 12 report,” Martell reports. “He expects Apple to have shipped 1.48 million Macs, representing 20 percent growth from a year ago and 11 percent higher than the previous quarter. ‘Our checks continue to show solid demand for Macs, particularly the new MacBooks,’ Reitzes wrote.”
“Apple said in July, when it last reported results, that it had doubled its share of the U.S. retail notebook market to 12 percent as measured by units shipped from January to June” Martell reports. “It said then it expected fourth-quarter net earnings per share of about 46 cents to 48 cents, including an estimated three cents per share expense from non-cash stock-based compensation. It also said it expected revenue of $4.5 billion to $4.6 billion.”
Full article here.
MacDailyNews Note: Apple will announce Q4 earnings on October 18th after market close.
Apple’s 2006 earnings and unit sales information through Q3:
• Q1 (ended 12/31/05): revenue of $5.75 billion, net quarterly profit of $565 million, 1.254 million Macs, 14.043 million iPods
• Q2 (ended 04/01/06): revenue of $4.36 billion, net quarterly profit of $410 million, 1.112 million Macs, 08.526 million iPods
• Q3 (ended 07/01/06): revenue of $4.37 billion, net quarterly profit of $472 million, 1.327 million Macs, 08.111 million iPods
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Analysts expect upbeat Q4 report from Apple on October 18th – October 12, 2006
UBS analyst sees strong Mac demand – October 12, 2006
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“With more than 75 percent of the U.S. market for digital music players, there’s limited room for growth in iPod market share.”
I’d say there’s probably room for 25% more. Just a guess.
If they’re expected to do it, is it a surprise?
This expected surprise will be celebrated by the thunderous silence of thousands clapping with one hand. Later this year, a Broadway musical of the event will debut tentatively titled, “Hello Dalai”.
“With more than 75 percent of the U.S. market for digital music players, there’s limited room for growth in iPod market share.”
That only represents the iPods % of all MP3 sales. There is plenty of room to grow since 100% of the population does not own a MP3 player.
(There are lies and there are statistics)
Shaw Wu?
That’s what my grandson says when we play hide-n-seek.
I understand the marketshare comment, but the logic is incomplete. The size of the mobile music market could also grow significantly, potentially giving the iPod a large percentage of a much larger number of people. After all, 50% of a billion is a lot better than 75% of a humdred million. As the prices continue to drop, the total market for iPods will grow. In addition, people will eventually need to replace iPods or upgrade to a newer, more capable model.
They also do not factor in that many iPod users are going to be looking upgrade to a newer model. There is always room for growth.
Wow there is anal and then there is some of the morons who post on this site. No need to go into statistics mind the culprits are painfully obvious.
Yep, Apple Store observations show most people checking out the computers and not the iPods.
“With more than 75 percent of the U.S. market for digital music players, there’s limited room for growth in iPod market share.”
OK – but what about the European Market ? Australia ? Asia ?
Here they can do a lot.
I live in Spain and here the Market is not dominated of the iPod.
I’m a Macuser since 1996(actually i got a Mini,iBookG4,iMac G5 20″ and my old PPC 5500/225 with the Style Writer 1200 is still running fine with OS 8.6), iPod owner since 2004(actually i got 6 and tomorrow i will get a new nano-Green for my 10 y/o Son), Shareholder since 2005 and one of the biggest Apple Fan you can think.
But all the new stuff comes here at list a couple of month later then in U.S. I’m still waiting for the Nike+Nano and my lokal Apple Dealer or Nike Shop don’t know when they will get it.
Thats not funny at all:-(
Lanzarote
ie the iPod did the job..people are now going wild for the more profitable product..
damnit, Ampar, don’t just scream out the answer – some of us are still working on it.
curve breaker…
oops
O/T: Is anyone else also getting tired of the iNames for new products? It seems to be wearing thin IMNSHO. I fully understand brand equity but the little i reminds me of the little e branding overkill before the dot com bust.
Where oh where has mr SELL SELL SELL gone?
“Apple expected to surprise investors”
That’s kinda stupid now, isn’t it? If it’s expected, it is no surprise.
“Apple expected to surprise investors”
How can it be a surprise when there’s been twenty articles in the last week that say the same thing.
As other companies are reporting somewhat negative news, Apple stands to be a shining light. It could be THE investment to own.
Ampar, shouldn’t that be iMNSHO ?
75% of market share doesn’t mean 75% of the population has an iPod.
I’d say that the percentage of the population that has an iPod isn’t nearly that high.
There is a lot of room to grow as far as iPod units being sold. As well as computers.
I once drank bong water off a hooker’s ass.
i think too much has been expected of AAPL. INMO. The rumor sites tend to hype things, wich if u pay attn can earn u some $.
anyway, i still know alota ppl w/o an iPod or a Mac, but hav been exposed or ask questns bout dem. mindshare & curiousity hopefully leads 2 Xpansionn of the customer base… and repeat purchases/upgrades.
loyalty to Apple is wuts kept them afloat prior to iPods & OS X.
“I once . . .”
Oh goody, another pathetic Ampar wannabe. Troll elswhere if you’re not bright enough to come up with your own name.
Death to all Ampar impersonators, I say.
Death to all Brad impersonators too (except there aren’t any).
I am really looking forward to this information, especially since it’s already 11.15 am Wednesday here in Australia.
Thanks, Brad T! But I’ll settle for lengthy torture.
I hope to add to the Mac sales numbers as soon as the updated MacBook Pros come out. I’m also curious as to whether iLife ’07 will have significant improvements. iWeb could use some juicing.
P.S. Brad? Would you mine posting the winning lottery numbers for Wednesday? Thanks!