Apple profit rises 27%, Mac up 30%, iPod up 35%; stock jumps

“Apple Computer said Wednesday that strong sales of its Macintosh computers and iPod portable music players led to a 27 percent rise in its fiscal fourth-quarter profit,” Laurie J. Flynn reports for The New York Times.

“The results, released after the market closed, caused Apple’s shares to jump as much as 6 percent in late trading as the company surpassed Wall Street forecasts,” Flynn reports.

“Apple said a brisk back-to-school season was a major force behind the better-than-expected results,” Flynn reports. “The company, which is based in Cupertino, Calif., reported net income of $546 million, or 62 cents a share, in the quarter, up from $430 million, or 50 cents a share, a year earlier. Revenue was $4.84 billion, an increase of nearly 32 percent from $3.68 billion the year before.”

“Macintosh sales accounted for 58 percent of revenue in the quarter, spurred in part by the new school season’s huge demand for notebook computers, the company said,” Flynn reports. “In a conference call with analysts, the chief financial officer, Peter Oppenheimer, spoke of ‘the best Mac shipments by far in any quarter in Apple’s history.’ The company said it shipped 1.6 million Macintosh computers, up 30 percent from a year earlier. Revenue from desktop and portable Macs increased 37 percent, to $2.2 billion.”

“The company sold 8.7 million iPods in the quarter, for $1.56 billion in revenue, an increase from 6.5 million iPods and $1.21 billion in revenue a year earlier,” Flynn reports. “This quarter, Mr. Oppenheimer said, Apple is forecasting revenue of $6 billion to $6.2 billion and earnings of 70 cents to 73 cents a share.”

Full article here.

Related articles:
IDC: Apple Mac attained 5.8% of U.S. market share in Q3 06 – October 18, 2006
Gartner: Apple Mac grabbed 6.1% of U.S. market share in Q3 06 – October 18, 2006
Apple Financial Results Conference Call Q4-2006 Live Notes – October 18, 2006
Apple shares rocket 6.5% in after-hours trading on stellar earnings report – October 18, 2006
Apple Q4 earnings results: $546M net profit on $4.84B revenue, sold 1.61M Macs, 8.729M iPods – October 18, 2006

7 Comments

  1. Besides the obvious increase in demand, one thing that hasn’t been mentioned much is that Apple has kept up with the demand. In past years, Apple has had significant problems with supplying hot new models. I guess this hasn’t been as much of an issue with Intel supplying the chips.

  2. Fanatic Realist: No, but I have found a negative article believe it or not:

    http://blogs.guardian.co.uk/technology/archives/2006/10/18/apple_reports_record_revenues_again_but_is_it_enough.html

    Another pearl of wisdom from the Guardian Newspaper (UK) who previously wrote that because iPod sales were down from the previous quarter, that meant that the iPod had reached its peak and would die soon.

    He couldn’t understand that you really need to compare year on year sales.

    He’s also posted vauge blog posts that generally twist any good news Apple has.

    Keep an eye on this asshole MDN, he’s a Dvorak/Thurrot/Enderle in the making.

  3. Speaking of nuts, Akido . . .

    Anyone know where “SELL SELL SELL,” “Peterson,” “Stock Boy,” et al., are hanging out today? They must be freezing, methinks, ’cause they’re all wearing SHORTS (financially speaking) in the winter quarter!

    Come on, you guys (guy?)–surely you have something pathetic to say!

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