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iPod touch sales spike 55%; Mac strong in education, overseas

post #1 of 24
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Apple's diverse lineup of popular products delivered a record quarter for the company, with officials revealing Monday that iPod touch and Mac sales are stronger than ever.

In the three-month holiday quarter, iPod touch sales saw a 55 percent year-over-year increase. Though iPod sales dropped to about 21 million, the average iPod selling price increased by 9 percent, and revenue increased 1 percent. Those increases were driven by a higher mix of sales favoring the iPod touch.

Apple's share of the MP3 player market remains about 70 percent, and the company continues to see share gains internationally. The iTunes platform it's tied to had a record quarter for sales as well.

Last month, one study found that use of the iPod touch was outpacing the iPhone in average use. It is believed the iPod touch could transition youth to the iPhone when they grow older. The study estimated that just over 40 percent of 58 million iPhone OS devices sold worldwide through September 2009 were the iPod touch.

International business is playing a much larger part for Apple now than it did in the past. In particular, the Mac platform, which still does not crack the top 5 worldwide vendors in terms of market share, saw significant gains in Apple's first financial quarter of 2010.

Last quarter, 58 percent of Apple's revenue came from international sales. The Mac alone saw growth of more than 40 percent in Italy, France, Switzerland and Spain. Growth in Australia was up over 70 percent, while China was nearly 100 percent.

Education sales for the Mac have been strong as well. In Monday's conference call, Chief Operating Officer Tim Cook revealed that Mac and MacBook sales were up 16 percent year over year in education. The company had new December records for its K-12 and higher education businesses.

Cook said the last quarter represented the best growth rate Apple has seen since before the recession began.

"Our whole education business is based on we really understand teaching and learning and student achievement at a deep level," he said. "We think we're the only company that really gets it. We do more than sell boxes like other companies do."

International and educational sales helped Apple to sell a record 3.36 million Macs during the December quarter. Nearly 1.1 million Macs were sold in Europe, 313,000 in Asia Pacific, and 105,000 in Japan.
post #2 of 24
Quote:
Originally Posted by AppleInsider View Post

"Our whole education business is based on we really understand teaching and learning and student achievement at a deep level,"

Apple also really understands milking the creative professional market, with its exorbitant pricing on Mac Pro processor upgrades that haven't come down in a year when the Intel component prices have plummeted.
post #3 of 24
Quote:
Originally Posted by Foo2 View Post

Apple also really understands milking the creative professional market, with its exorbitant pricing on Mac Pro processor upgrades that haven't come down in a year when the Intel component prices have plummeted.

Seems Mac Pro customers sense a bigger value proposition.
post #4 of 24
I'd be curious to see to what extent the recently depreciating dollar has helped with Apple's reported ($) revenues and EPS, given the increase in international share.

As a result, I won't get too excited about that. The dollar could start to move the other way, and the opposite will happen.
post #5 of 24
Quote:
Originally Posted by anantksundaram View Post

I'd be curious to see to what extent the recently depreciating dollar has helped with Apple's reported ($) revenues and EPS, given the increase in international share.

As a result, I won't get too excited about that. The dollar could start to move the other way, and the opposite will happen.

Apple does a pretty good job of hedging currencies and pricing effectively in USD with a conversion only at rollout. Last time the USD was really strong it worked wonders for AAPL. They seem to win on both ends.
post #6 of 24
Quote:
Originally Posted by AppleInsider View Post

In the three-month holiday quarter, iPod touch sales saw a 55 percent year-over-year increase. Though iPod sales dropped to about 21 million, the average iPod selling price increased by 9 percent, and revenue increased 1 percent. Those increases were driven by a higher mix of sales favoring the iPod touch.

...

Last month, one study found that use of the iPod touch was outpacing the iPhone in market share. It is believed the iPod touch could transition youth to the iPhone when they grow older. The study estimated that just over 40 percent of 58 million iPhone OS devices sold worldwide through September 2009 were the iPod touch.

So use is another measure of market share?

Quoting another one of today's articles on this site:
Quote:
The company also shipped a record 8.7 million iPhones in the quarter, representing 100 percent unit growth over the year-ago quarter.

iPhone doubled sales over previous year, and Touch sales being a 55 percent increase over previous year, not sure how Touch *use* figures into all this, actual Touch sales aren't outpacing iPhone sales.
post #7 of 24
I want a GPS in the Touch. Even a third-party bolt-on would be good. I've seen one or two "coming soon", but nothing shipping yet. And not just an "in car" one like the TomTom, a truly mobile one.

- Jasen.
post #8 of 24
ipod touch/iphone needs a new form factor. i wish apple would pop a larger screen into it that covers the whole face, without the empty space at the top and bottom where the home button is.
post #9 of 24
Quote:
Originally Posted by aaarrrgggh View Post

Apple does a pretty good job of hedging currencies and pricing effectively in USD with a conversion only at rollout. Last time the USD was really strong it worked wonders for AAPL. They seem to win on both ends.

From their 10Q, I see that their volumes have done rather well in Europe and Asia-Pacific (Japan is a sour spot), compared to the Americas (data only for Mac, but hopefully, it's representative of iPods/iPhones as well):

Europe volume: +34%
Asia-Pacific volume: +54%
Japan volume: +6%
Americas volume: +30%

So yes, the company seems to be doing fine abroad, without the help of exchange rates or hedging or any of that stuff.
post #10 of 24
Quote:
Originally Posted by JeffDM View Post

So use is another measure of market share?

Quoting another one of today's articles on this site:


iPhone doubled sales over previous year, and Touch sales being a 55 percent increase over previous year, not sure how Touch *use* figures into all this, actual Touch sales aren't outpacing iPhone sales.

dude you rock
good catch !
!USE ??

and 40 percent of 58 million iphones sales were ipod touches ??
very confusing to say the least

i dunno how a ipod touch is a iphone sale at all

at some point <<2014 ??> ipod touches with strong wifi will out sell iphones 7 to 1
the world wide gamers and people who love the apps will take over
and the ipod touch is becoming the real ipod now in many minds , s small fantastic powerful music movie game playing device
with no contracts or monthy fee's

peace 9
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post #11 of 24
Quote:
Originally Posted by red_skittles View Post

ipod touch/iphone needs a new form factor. i wish apple would pop a larger screen into it that covers the whole face, without the empty space at the top and bottom where the home button is.

My guess is they'll probably trim it down a bit. The space may be visually empty, but there are parts under there, and there may be some physical usability considerations that might dissuade them from going as far as your mock-up example goes.
post #12 of 24
Quote:
Originally Posted by brucep View Post


and 40 percent of 58 million iphones sales were ipod touches ??
very confusing to say the least

I think they are referring to the iPhone OS. 40% of 58m iPhone OS sales or roughly 23 m.
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post #13 of 24
Quote:
Originally Posted by Quadra 610 View Post

Seems Mac Pro customers sense a bigger value proposition.

Vastly outnumbered by those who know better and don't.
post #14 of 24
Quote:
Originally Posted by Quadra 610 View Post

Seems Mac Pro customers sense a bigger value proposition.

Yeah, expensive boxes running cheap software (compared to the competition). Overall you save money. Especially since Apple drops the price of their Pro software with every release. Perhaps this is the way Apple deals with software piracy. Although for some, the new i7 iMac is bringing the hardware cost down too.
post #15 of 24
iPod touch sales are now good enough that Apple really needs to launch multiple models:

* A ruggedized sport model that's waterproof and has GPS

* A fast gamer version with a large battery for heavy play.

* An office-on-the-go productivity model with a camera,

* A tourist model with GPS and a SD slot for travel data.

* A model for kids that can take a lot of abuse.
post #16 of 24
Quote:
Originally Posted by Inkling View Post

iPod touch sales are now good enough that Apple really needs to launch multiple models:

* A ruggedized sport model that's waterproof and has GPS

* A fast gamer version with a large battery for heavy play.

* An office-on-the-go productivity model with a camera,

* A tourist model with GPS and a SD slot for travel data.

* A model for kids that can take a lot of abuse.

Great suggestions. I doubt Apple will feel the same.
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post #17 of 24
Quote:
Originally Posted by AppleInsider View Post

Last quarter, 58 percent of Apple's revenue came from international sales. The Mac alone saw growth of more than 40 percent in Italy, France, Switzerland and Spain. Growth in Australia was up over 70 percent, while China was nearly 100 percent.

On a note a few days ago we discussed weather the coming device - tablet? - would be a US only introduction and if so, how long international sales to other countries would have to wait. To continue grow Apple has to change to a world wide company more than a US player. At some point this would also mean world wide product introductions rolled out over short periods or even one big introduction on one day. They did some training with the iPhone 3GS, they have media agreements for at least in many countries and production capacity built up for it.

These figures shows the potential Apple has to take this challenge on. Their brand is strong and they should leverage that further all over the world.

Many studies also confirms that a international perspective from the start is a key success factor. This would suit Apple!

Go Apple Go!
post #18 of 24
Quote:
Originally Posted by Foo2 View Post

Vastly outnumbered by those who know better and don't.

A vast number of foolish sheep.
post #19 of 24
Quote:
Originally Posted by Motlee View Post

I think they are referring to the iPhone OS. 40% of 58m iPhone OS sales or roughly 23 m.

so are ipod touches counted as a phone or a pod ??
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post #20 of 24
Quote:
Originally Posted by Inkling View Post

iPod touch sales are now good enough that Apple really needs to launch multiple models:

111* A ruggedized sport model that's waterproof and has GPS

222* A fast gamer version with a large battery for heavy play.

333* An office-on-the-go productivity model with a camera,

444* A tourist model with GPS and a SD slot for travel data.

555* A model for kids that can take a lot of abuse.

good models . so you want me to buy all of them ??

the first and last arev the same model
and 4 should have a camera
and 3 should not
why not make 2 models ??
a gaming office one
and a tourist rugged one?
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post #21 of 24
Quote:
Originally Posted by tumme-totte View Post

On a note a few days ago we discussed weather the coming device - tablet? - would be a US only introduction and if so, how long international sales to other countries would have to wait. To continue grow Apple has to change to a world wide company more than a US player. At some point this would also mean world wide product introductions rolled out over short periods or even one big introduction on one day. They did some training with the iPhone 3GS, they have media agreements for at least in many countries and production capacity built up for it.

These figures shows the potential Apple has to take this challenge on. Their brand is strong and they should leverage that further all over the world.

Many studies also confirms that a international perspective from the start is a key success factor. This would suit Apple!

Go Apple Go!

go apple go



9
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post #22 of 24
Well it's good to hear about Macs' penetration into the education market. However in one of the Apple-related blogs to which I subscribe, there was a post about how the a Toronto school system was going back to PCs.
The reason or reasons the school system gave seemed pretty bogus to me though.
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post #23 of 24
Quote:
Originally Posted by icyfog View Post

Well it's good to hear about Macs' penetration into the education market. However in one of the Apple-related blogs to which I subscribe, there was a post about how the a Toronto school system was going back to PCs.
The reason or reasons the school system gave seemed pretty bogus to me though.

I saw that article. I dont think the reasons are bogus necessarily. Toronto School board is simply trying to find ways to cut costs. They are not replacing the Macs they currently have, just not buying new ones for anything other than classes that involve the arts.

My guess is the board contains at least 1 troll who simply looks at Macs for their initial cost and not the long-term benefits.

From what I recall there was one sensible board member who thinks the kids need to be exposed to more than one platform, and I couldnt agree with him/her more.

Nice post.
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post #24 of 24
Quote:
Originally Posted by brucep View Post

so are ipod touches counted as a phone or a pod ??

They are different hardware that run the same OS. Similiar to Mac OS X is the same OS whether it's on Mac Pro or MBA, for lack of a better example.
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