Steve Jobs: Apple at $50 billion annually but just getting started
Apple's chief executive Steve Jobs announced that the company's annual revenues are now beyond $50 billion, but indicated that even more is in the pipeline to get excited about.
"If you annualize our quarterly revenue, it's surprising that Apple is now a $50+ billion company," Jobs said. "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."
Apple sold 3.36 million Macs, including more than 2.1 million notebooks. That represented 33% growth in Mac sales, compared to an industry-wide 17% growth in PCs reported by IDG. Desktop sales reached 70% growth year over year thanks to the popular new iMac models. Apple's COO Tim Cook detailed even greater growth rates in Mac sales internationally.
It also sold 21 million iPods and 8.74 million iPhones, a record number of new mobile devices for the company. Apple retained roughly 70% market share in the global MP3 market with iPods; growth in the iPod touch reached 55%, while iPhones amounted to a 100% increase in sales over the previous quarter, comparing very favorably to Canalys' data showing industry smartphone growth at around 30%.
The "major new product" Jobs alluded to is expected to be a tablet-form factor device to be announced on Wednesday at the scheduled press event. Company executes speaking during today's earnings announcement explicitly avoided any comment on what the company might release on Wednesday, even dodging the question of whether any new products in the pipeline might contribute to Apple's future earnings.
As the company outperforms both its PC and smartphone competitors and maintains dominance over the entire MP3 market, the uncertainty of whether Apple will be able to successfully deploy a tablet-sized device (given the history of failure dogging that category of products) seems less of a risk than many observers have suggested.
Apple's confidence in launching a new, larger mobile device appears to be based on its years-long head start in releasing usable multitouch interface technology that customers have snapped up enthusiastically, in addition to the tight integration between its iTunes business and its mobile device hardware.
"If you annualize our quarterly revenue, it's surprising that Apple is now a $50+ billion company," Jobs said. "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."
Apple sold 3.36 million Macs, including more than 2.1 million notebooks. That represented 33% growth in Mac sales, compared to an industry-wide 17% growth in PCs reported by IDG. Desktop sales reached 70% growth year over year thanks to the popular new iMac models. Apple's COO Tim Cook detailed even greater growth rates in Mac sales internationally.
It also sold 21 million iPods and 8.74 million iPhones, a record number of new mobile devices for the company. Apple retained roughly 70% market share in the global MP3 market with iPods; growth in the iPod touch reached 55%, while iPhones amounted to a 100% increase in sales over the previous quarter, comparing very favorably to Canalys' data showing industry smartphone growth at around 30%.
The "major new product" Jobs alluded to is expected to be a tablet-form factor device to be announced on Wednesday at the scheduled press event. Company executes speaking during today's earnings announcement explicitly avoided any comment on what the company might release on Wednesday, even dodging the question of whether any new products in the pipeline might contribute to Apple's future earnings.
As the company outperforms both its PC and smartphone competitors and maintains dominance over the entire MP3 market, the uncertainty of whether Apple will be able to successfully deploy a tablet-sized device (given the history of failure dogging that category of products) seems less of a risk than many observers have suggested.
Apple's confidence in launching a new, larger mobile device appears to be based on its years-long head start in releasing usable multitouch interface technology that customers have snapped up enthusiastically, in addition to the tight integration between its iTunes business and its mobile device hardware.
Comments
The numbers are very good but I wonder about the impact of the accounting change. That could be coloring the results some.
In any event Jobs didn't use the tablet word. So maybe the excitement about a tablet is mis placed.
Dave
If Jobs is excited. Can't wait
He's always excited. That's his job.
In any event Jobs didn't use the tablet word. So maybe the excitement about a tablet is mis placed.
What is this about a tablet?
Apple. The beleaguered computer company. Should look for buyers.
2010:
Apple. Still besieged. By eager buyers of its products.
I can see Apple becoming a 50b company in the near future... but you can't expect all year to produce the same results that christmas does.
If any company can successfully deploy a device in a category that's hounded by failure, it's Apple.
Couldn't agree more. That's what they've made a name for themselves doing lately.
MP3 players were basically an interesting idea badly executed until they came along.
Smartphones were something of a complex joke until they came along.
Assuming they are going to do a tablet, I expect the same success.
Ummmmm. $50 Billion in revenue, not earnings.
Thanks. I'd love to imagine APPL with 50B in earnings. I'm often shocked that people don't seem to understand the difference between sales and net income.
Who wants to bet that Apple announces they will no longer make a tower? Actually, who want's to bet they announce that they will no longer be developing OSX for desktop computers - to solely focus on the mobile market?
Cuz i'm willing to bet the graphics on the iSlab will outperform any Mac Pro sporting a $1000 video card by %800... just like a Commodore 64 can...
Seriously thou... Snow Leopard is a joke. My PPC G5 from 2004 gets better video performance in some situations
You would think that with 50 Billion a year, they could afford to put a little R&D into their flagship OS and bring it up to at least 2008 industry standards.
50 BILLION A YEAR!!!!!!!! ... and they still can't develop a graphic's driver that doesn't completely suck?
Who wants to bet that Apple announces they will no longer make a tower? Actually, who want's to bet they announce that they will no longer be developing OSX for desktop computers - to solely focus on the mobile market?
Cuz i'm willing to bet the graphics on the iSlab will outperform any Mac Pro sporting a $1000 video card by %800... just like a Commodore 64 can...
Seriously thou... Snow Leopard is a joke. My PPC G5 from 2004 gets better video performance in some situations
You would think that with 50 Billion a year, they could afford to put a little R&D into their flagship OS and bring it up to at least 2008 industry standards.
50 BILLION A YEAR!!!!!!!! ... and they still can't develop a graphic's driver that doesn't completely suck?
Who wants to bet that Apple announces they will no longer make a tower? Actually, who want's to bet they announce that they will no longer be developing OSX for desktop computers - to solely focus on the mobile market?
Cuz i'm willing to bet the graphics on the iSlab will outperform any Mac Pro sporting a $1000 video card by %800... just like a Commodore 64 can...
Seriously thou... Snow Leopard is a joke. My PPC G5 from 2004 gets better video performance in some situations
You would think that with 50 Billion a year, they could afford to put a little R&D into their flagship OS and bring it up to at least 2008 industry standards.
U cracky!
I WONDER WHAT IT COULD BE !?!?!?!?!