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Apple's Mac sales rise 12 percent

post #1 of 49
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Apple Computer, which released its third quarter results on Wednesday, said sales of its Mac computer line rose 12 percent, fueled primarily by the company's new Intel-based product lines.

During the three month period ended June, Apple shipped 1,327,000 Macs and 8,111,000 iPods, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.

The results compare to 1,182,000 Macs and 6,155,000 iPods which the company shipped during its third fiscal quarter of 2005.

"We're thrilled with the growth of our Mac business, and especially that over 75 percent of the Macs sold during the quarter used Intel processors. This is the smoothest and most successful transition that any of us have ever experienced," said Apple chief executive Steve Jobs.

Apple's Mac sales were also up sequentially, showing 19 percent growth in both units and revenues from the company's previous fiscal quarter. During the same period, iPod unit sales slowed by 5 percent, accounting for a 13 percent decline in revenues from the previous quarter.

The company's fiscal third-quarter profit of $472 million, or 54 cents a share, represents an increase of 47.5 percent from the $320 million, or 37 cents a share, a year ago.
post #2 of 49
How does this compare to the rest of the industry?
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post #3 of 49
Quote:
Originally posted by Gene Clean
How does this compare to the rest of the industry?

Exactly. It would be nice to see some actual journalism from Apple Insider, just once every so often.
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post #4 of 49
I agree with you guys. I visit AppleInsider.com daily because I want information on Apple. I would be thrilled to get more in-depth reports. What else am I going to do while I'm at work?
post #5 of 49
Last I checked, Apple doesn't compare to the rest of the industry. It owns the MP3 player market and it makes the best hardware and software out there. Can't we just be happy they pulled off another great quarter?
post #6 of 49
Over 9 Billion in Cash on hand!!! Where will they use this or who will they buy? Abobe's Market Cap as of today is 16,454.48. Buy them already.
post #7 of 49
Quote:
Originally posted by zeus423
Can't we just be happy they pulled off another great quarter?

This is not a thread discussing Apple's results. It is a thread with the title "Apple's Mac sales rise 12 percent". And last I checked, Apple is a computer manufacturer and their market share matters to many people.
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post #8 of 49
Thats a pretty nice growth actually... Tech industry or not.
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post #9 of 49
I agree with you on "This is not a thread discussing Apple's results. It is a thread with the title "Apple's Mac sales rise 12 percent". And last I checked, Apple is a computer manufacturer and their market share matters to many people." -
Last I checked there is something called freedom of speech.

I believe that mac sales would rise if they buy one of the biggest software companies that are holding back future growth because products are not Universal.


By the way; Apple's Market Cap today is 46,012.48. This does not include after hours trading.
post #10 of 49
Quote:
Originally posted by muchicuchi
Last I checked there is something called freedom of speech.

Last I checked, this wasn't a public place, and therefore, throwing "freedom of speech" into the conversation makes no sense because it is simply not effective.

Quote:
I believe that mac sales would rise if they buy one of the biggest software companies that are holding back future growth because products are not Universal.

And then magically pull Universal Binaries out a hat? You'd still need months of man-hours creating them.
post #11 of 49
Quote:
Originally posted by muchicuchi
Over 9 Billion in Cash on hand!!! Where will they use this or who will they buy? Abobe's Market Cap as of today is 16,454.48. Buy them already.

That's a pretty common figure for Apple actually. Even in their leanest years Apple has always sat on several billion in the bank.
post #12 of 49
That was a great quarter for Apple!

In my view, the introduction of the MacBook during the quarter really helped to drive Macintosh sales, especially notebooks. The slow desktop sales can be attributed to the G5 PowerMacs. There will be a dramatic increase in Macintosh desktop sales following the introduction of the Intel based PowerMac replacement.

I expect to see increasing Macintosh sales during the upcoming holiday shopping season.

Apple's Market Share is on an upward swing. Keep up the good work Steve.

8)
post #13 of 49
Quote:
Originally posted by ChevalierMalFet
That's a pretty common figure for Apple actually. Even in their leanest years Apple has always sat on several billion in the bank.

Had to break out of my self imposed exile (congratulations BTW)... Only because you have no idea WHAT you're talking about... Pretty 'common' figure?!?! Leanest of years and 9B in the bank?!?!!??!

'a COUPLE of billion or less' (lean years) doesn't come close to TEN billion...

And I quote Steve Jobs circa 2004:

Quote:
Today is a historic day of sorts for our company. When I arrived back at Apple in mid-1997, the company was burdened with $1 billion of debt. Through everyones hard work we turned Apple around, paid off the majority of our debt and began to amass a war chest of cash in the bank which has grown to about $4.8 billion! But there was still $300 million of remaining debt, which we decided to hold to maturity. Today we used $300 million of our cash to pay off this remaining debt. Apple is now a debt-free company ???ë for the first time in over a decade! It sure feels good.

Carry on.
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post #14 of 49
It does seem as though the doubts about the transitions in any consumers minds is about over. I consider the 19% Mac growth over last quarter to be more indicative of this than the 12% growth from last years quarter.

Now we just have to see what was meant by the pro machines being available by the end of the year.
post #15 of 49
Quote:
Originally posted by DaveGee
Had to break out of my self imposed exile (congratulations BTW)... Only because you have no idea WHAT you're talking about... Pretty 'common' figure?!?! Leanest of years and 9B in the bank?!?!!??!

'a COUPLE of billion or less' (lean years) doesn't come close to TEN billion...

And I quote Steve Jobs circa 2004:

Carry on.

I don't think he meant 9 billion exactly. But before jobs returned and Apple was losing a lot of money, I think they had around 4 billion in the bank.
post #16 of 49
Quote:
Originally posted by nmcphers
I don't think he meant 9 billion exactly. But before jobs returned and Apple was losing a lot of money, I think they had around 4 billion in the bank.

Yes, they had a good amount in the bank, which was why they were in no great danger financially.
post #17 of 49
Quote:
Originally posted by melgross
Yes, they had a good amount in the bank, which was why they were in no great danger financially.

Or 'Doomed' as the less savvy pundits described having billions in the bank.

Are Apple more Doomed now ?

post #18 of 49
Quote:
Originally posted by muchicuchi


I believe that mac sales would rise if they buy one of the biggest software companies that are holding back future growth because products are not Universal.


Don't be ridiculous.
post #19 of 49
Quote:
Originally posted by Mr. H
Exactly. It would be nice to see some actual journalism from Apple Insider, just once every so often.

Perhaps you could post a link to Gartner's or IDC's figures for this years Q2 worldwide PC sales?
post #20 of 49
[QUOTE]Originally posted by Gene Clean
How does this compare to the rest of the industry?



Hi Gene, Apple's market share for laptops in the USA has gone up from 6% to 12%. First time I've seen any market share figure exceed 10% !!

Edit: I am not sure if the 12% is 12% of all portables sold in the USA in April-June (more likely) or (less likely) 12% of all portables being used in the USA during April-June.
post #21 of 49
[QUOTE]Originally posted by Gene Clean
How does this compare to the rest of the industry?


[QUOTE]Originally posted by piot
Perhaps you could post a link to Gartner's or IDC's figures for this years Q2 worldwide PC sales?



For the quarter April-May-June 2006 Apple Mac shipments have been quite excellent to hit 12% growth compared to April-May-June 2005. Shipments hit 19% growth compared to Jan-Feb-March 2006.

If Apple continues this trend across 2006, they would have shown significantly more growth compared to PC shipments which are expected to grow in 2006 at 10%-11%


http://www.pcworld.com/news/article/0,aid,125039,00.asp

"Shipments of PCs worldwide will grow at a slower pace in 2006 than in 2005, partly because the replacement cycle for desktop PCs has hit a peak, market researcher Gartner said last week.
\t
PC shipments in 2006 are expected to reach 234.5 million units, up 10.7 percent compared with 2005. However, PC shipments grew 15.5 percent in 2005, compared with 2004.

Desktop PC shipments are projected to grow just 1.9 percent this year overall, declining 8.6 percent in mature markets while increasing 19.5 percent in emerging markets, according to Gartner. Mature markets include the U.S. and Western Europe.

Mobile PC shipments are expected to grow 31.4 percent worldwide this year.

Meanwhile, IDC separately has similar expectations. IDC expects worldwide PC shipments to grow 10.5 percent this year over 2005, helped in large part by strong sales in Asia-Pacific with 13.2 percent growth in shipments and in emerging markets, such as Eastern Europe, the Middle East, Africa, and Latin America, with 18.5 percent growth, analyst David Daoud says.

Mature markets will experience more moderate growth, with Western Europe seeing a 9.7 percent increase in shipments, the U.S. a 6.8 percent increase, and Japan remaining essentially flat this year compared with last year."


http://news.zdnet.co.uk/hardware/0,3...9259805,00.htm

"Worldwide PC shipment growth is expected to be 10.5 percent, down slightly from expectations of 10.6 percent outlined by IDC in November. This is coming off stronger-than-expected growth of 15.9 percent in 2005. The slowdown will be more pronounced in the US, as overall growth slows from 9.6 percent in 2005 to 6.8 percent in 2006, the research firm said on Monday."
post #22 of 49
Quote:
Originally posted by aegisdesign
Or 'Doomed' as the less savvy pundits described having billions in the bank.

Are Apple more Doomed now ?


Well, geez, Aegis, they're always doomed.
post #23 of 49
Quote:
Originally posted by zeus423
Last I checked, Apple doesn't compare to the rest of the industry. It owns the MP3 player market and it makes the best hardware and software out there. Can't we just be happy they pulled off another great quarter?

And my ass smells of cherry blossoms. The rest of us would like to know how the company is performing relative to the industry. It obviously compares to the industry, or everyone would be using a Mac.
post #24 of 49
Quote:
Originally posted by muchicuchi
Over 9 Billion in Cash on hand!!! Where will they use this or who will they buy? Abobe's Market Cap as of today is 16,454.48. Buy them already.

Damn, that would be interesting. As much as I hate to see consolidation and lack of competition, that is already happening with Adobe owning most of the creative design market. Apple would control a huge aspect of their destiny, freak out microsoft and probably spawn renewed competition in the multimedia and design tools area.
post #25 of 49
Quote:
Originally posted by sunilraman
Hi Gene, Apple's market share for laptops in the USA has gone up from 6% to 12%. First time I've seen any market share figure exceed 10% !!

Sunil, Apple doesn't sell laptops.

Glad to see audiopollution didn't follow through with his applestoreisdown threat.

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post #26 of 49
Quote:
Originally posted by nmcphers
I don't think he meant 9 billion exactly. But before jobs returned and Apple was losing a lot of money, I think they had around 4 billion in the bank.

Wanna take a guess what else Apple had in the days prior to Jobs return?!?!

BILLIONS in short term & long term liabilities (loans)... I still call it a huge difference when you try and compare: 1997ish $3ish B in the bank and gobs of debt is NOT the same as 9B in the bank and much more manageable debts.

Dave
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post #27 of 49
Apple is actually debt-free and has been for a while now.
post #28 of 49
[QUOTE]Originally posted by bergz
Sunil, Apple doesn't sell laptops. Glad to see audiopollution didn't follow through with his applestoreisdown threat.



Yes, they are not laptops because you burn your lap if you put it there. They are "portables"

I tend to get away with way too much on these forums at times. Anyway the threat was mainly during the run up to macworld 2006 or something like that. People were all over the store is down! now it's up! oh now its down! now it's up! OMFG!

Yeah, the rule is no Store is Down! threads, only Store is Up With Real Updates! thread. AppleInsider would be crushed greatly and be in mourning, deep deep sadness should I be permanently banned.
post #29 of 49
Found out that Apple still has no debt. 8 Billion is cash and the rest is short term investments such as memory they purchased for future iPods and other things totaling 9.4 Billion dollars.

Another point to be made. I found out that Apple did not not cash in the bank when Steve came back. They also has hordes of debt.
post #30 of 49
[QUOTE]Originally posted by Chucker
Apple is actually debt-free and has been for a while now.


Since their revenue exceeds their cost (they are making profit), what do they do with the cash really? Don't they report how much interest they earn on it? Just wondering...

Let's say $8,000,000,000 @ 5% interest - That's $100,000,000 a quarter. A hundred million per quarter without having to do anything. Nice

Anyway I think it's in their official SEC GAAP reporting or something, how they manage their 9 billion, and what is defined as "cash".
post #31 of 49
[QUOTE]Originally posted by muchicuchi
8 Billion is cash and the rest is short term investments such as memory they purchased for future iPods and other things totaling 9.4 Billion dollars.



Yeah, having a several billion spare is nice to secure big deals such as memory contracts and stuff. Still curious as to what is defined as "cash" for that 8 billion and how it is invested. They probably get 5% interest on it easy.
post #32 of 49
Quote:
Originally posted by sunilraman


Since their revenue exceeds their cost (they are making profit), what do they do with the cash really? Don't they report how much interest they earn on it? Just wondering...

Some of that cash is to be spent on a swanky new office complex up the road from 1 Infinite Loop. That's not going to be cheap.
post #33 of 49
[QUOTE]Originally posted by sunilraman
Quote:
Originally posted by Chucker
Apple is actually debt-free and has been for a while now.


Since their revenue exceeds their cost (they are making profit), what do they do with the cash really? Don't they report how much interest they earn on it? Just wondering...

Let's say $8,000,000,000 @ 5% interest - That's $100,000,000 a quarter. A hundred million per quarter without having to do anything. Nice

Anyway I think it's in their official SEC GAAP reporting or something, how they manage their 9 billion, and what is defined as "cash".

In several years, I think around 98-02, they made profits each quarter, but 90% of their profits were from the intrest on the 4-5 billion they had in the bank.

I'm sure my specifics are off, but I think the general gist is correct.
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post #34 of 49
Quote:
Originally posted by aegisdesign
Some of that cash is to be spent on a swanky new office complex up the road from 1 Infinite Loop. That's not going to be cheap.


Those costs are probably amortized across many years...

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post #35 of 49
[QUOTE]Originally posted by aegisdesign
Some of that cash is to be spent on a swanky new office complex up the road from 1 Infinite Loop. That's not going to be cheap.



While the initial amounts paid for contracts and so on to get the complex underway may dip into the 8 billion+ warchest, It will/ should be all covered quarter-by-quarter by profits. Since you take the revenue for the quarter, minus operating expenses and costs (including building contracts for new offices, etc.) ... if you end up with a profit then the 8 billion+ is "safe" since you take your revenues and put it back into the warchest.

And yeah as SpamSandwich says, you aren't gonna give the builders, hey, here's $1 billion transferred to your bank account. No go build!! The contracts will specify payments at specific junctures, like initial deposit, stage 1, stage 2, stage 3, etc. So in terms of cash flow, IMHO, Apple will be covered by their quarterly revenue to take into account expense of building offices.

I think that will be the same with other contracts like the $500million Apple is putting with Intel-Micron into some memory deal:
(http://marketwatch-cnet.com.com/Appl...3-5964565.html)
(http://www.embedded.com/showArticle....leID=174400617)
- I don't think it will be a lump sum payment, the contract will specify stages of cash injections so again should be covered on a quarterly basis by Apple revenue.

Although to play devil's advocate on what I just said, there are some cases where yes, having that warchest of 8billion+ is useful in that you can dip into it to prepay your "deposits" on these big contracts. Even if you don't have to pay the whole amount at once, I think the deposits for the contract are fairly chunky, so you take it out of the warchest as a long-term-investment. I don't know how they figure that into operating expenses though.

Since normally, for cash flow, if you are making big chunky payments, what a company does is get loans. So you pay your deposits on chunky contracts via the loan. Then you figure in your *interest payments* into the quarterly expenses. If Apple is not taking loans and just "borrowing" from it's own warchest then I wonder how the accountants figure these costs into the quarterly expenses.
post #36 of 49
[QUOTE]Originally posted by Flounder
In several years, I think around 98-02, they made profits each quarter, but 90% of their profits were from the intrest on the 4-5 billion they had in the bank...I'm sure my specifics are off, but I think the general gist is correct.



Then the 472million in profits this past quarter, of it maybe 100million is via the 8-9billion in the bank ... So actually 22% of the profit for the past quarter could be from interest. So excluding interest their profit could be "only" 372million. Hmm.......
post #37 of 49
[QUOTE]Originally posted by sunilraman
Quote:
Originally posted by Flounder
In several years, I think around 98-02, they made profits each quarter, but 90% of their profits were from the intrest on the 4-5 billion they had in the bank...I'm sure my specifics are off, but I think the general gist is correct.



Then the 472million in profits this past quarter, of it maybe 100million is via the 8-9billion in the bank ... So actually 22% of the profit for the past quarter could be from interest. So excluding interest their profit could be "only" 372million. Hmm.......

Actually, Apple's cash has never contributed to its profit; it can't. Profit is calculated as "Revenues - Cost of Revenues", and their cash doesn't figure in that. For example, their profit this quarter was $472 million, but their cash increased by $950 million (see here under the heading "the financial side of Q3", near the bottom). Profits can contribute to the increase in cash, but increase in cash from interest doesn't count as profit.

edit: corrected cash increase figure
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post #38 of 49
[QUOTE]Originally posted by Mr. H
Actually, Apple's cash has never contributed to its profit; it can't. Profit is calculated as "Revenues - Cost of Revenues", and their cash doesn't figure in that. For example, their profit this quarter was $472 million, but their cash increased by $940 million (see here under the heading "the financial side of Q3", near the bottom). Profits can contribute to the increase in cash, but increase in cash from interest doesn't count as profit.



Oh okay, Cool. Was wondering about that. So where did the cool $468 million come from?
post #39 of 49
Quote:
Originally posted by sunilraman
Oh okay, Cool. Was wondering about that. So where did the cool $468 million come from?

Assuming that all their profits went into the cash pile, that means they made $478 million* in "investment gains" on their cash. They started the quarter with $9.2 - 0.95 = $8.25 billion. .478/8.25 = 5.79% increase in one quarter, which is the equivalent of 23% per year.

Why do you think Apple set up Braeburn Capital? It's because they're bloody good at generating impressive gains on their capital. Apple have been good at it for a long time now.



*the total cash increase was $950 million, I made a mistake in my previous post, now corrected.
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post #40 of 49
Yeah I did some sums and when the return on investment came out to over 20% I was floored. That is f*king a massive return. Who's managing this cash? Who are these fund managers at Braeburn Capital or whatever that's delivering 20%? Fund managers at major institutions push what, anywhere from 5% to 15%? But over 20%? Either it was a great investment choice for the quarter, or there's something we're not seeing. Sounds too good to be true.
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