“Apple Inc. surpassed even the most optimistic forecasts for its usually tepid second quarter, delivering an 88 percent increase in profit on strong sales of Macintosh computers and iPod music players,” Laurie J. Flynn reports for The New York Times.
“The company said on Wednesday that its profit rose to $770 million from $410 million in the comparable quarter last year. Apple sold 1.5 million Macs in the quarter, a record for the company [for fiscal 2nd quarter],” Flynn reports.
“In an interview, Steven P. Jobs, Apple’s chief executive, called the quarter a ‘blowout,’ and noted that the strong sales and market share gains came even though the company had not made any major upgrades to its lines of portable and desktop computers,” Flynn reports.
“Apple’s strength was particularly notable in that it came during the quarter in which Microsoft finally released the long-awaited Vista version of its Windows operating system, an event that the PC industry was counting on to spur a wave of computer upgrades,” Flynn reports. “Mr. Jobs noted that Dell had recently returned an earlier version of Windows to its product line, which he said was an indication that demand for Vista had not been overwhelming.”
‘“They’re defying the laws of gravity when it comes to profitability,” said Eugene A. Munster, an analyst at Piper Jaffray,” Flynn reports. “Mr. Munster said the appeal of the Macintosh was clearly expanding beyond its traditional niche. ‘There’s a global shift in how people see personal computers — for entertainment, creativity and good looks,’ Mr. Munster said. ‘Apple has found that sweet spot, and with almost no competition.’”
“Apple said Mac sales accounted for 56 percent of revenue during the second quarter, with music-related products, including iPods and iTunes sales accounting for the other 44 percent,” Flynn reports.
Full article here.