Apple posts profit of $1 billion, sells 21 million iPods
Apple said Wednesday that results for its fiscal 2007 first quarter ended December 30, 2006 included record revenue of $7.1 billion and record net quarterly profit of $1.0 billion, or $1.14 per diluted share.
The results compare to revenue of $5.7 billion and net quarterly profit of $565 million, or $.65 per diluted share, in the year-ago quarter. Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter's revenue.
"We are incredibly pleased to report record quarterly revenue of over $7 billion and record earnings of $1 billion," said Apple chief executive Steve Jobs. "We've just kicked off what is going to be a very strong new product year for Apple by launching Apple TV and the revolutionary iPhone."
During the quarter, Apple shipped 1,606,000 Macintosh computers and 21,066,000 iPods, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.
"We generated over $1.75 billion in cash during the quarter to end with $11.9 billion," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second fiscal quarter of 2007, we expect revenue of $4.8 to $4.9 billion and earnings per diluted share of $.54 to $.56."
Apple will provide live streaming of its Q1 2007 financial results conference call utilizing QuickTime, its standards-based technology for live and on-demand audio and video streaming.
Update: Please see our running list of notes from the conference call.
The results compare to revenue of $5.7 billion and net quarterly profit of $565 million, or $.65 per diluted share, in the year-ago quarter. Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter's revenue.
"We are incredibly pleased to report record quarterly revenue of over $7 billion and record earnings of $1 billion," said Apple chief executive Steve Jobs. "We've just kicked off what is going to be a very strong new product year for Apple by launching Apple TV and the revolutionary iPhone."
During the quarter, Apple shipped 1,606,000 Macintosh computers and 21,066,000 iPods, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.
"We generated over $1.75 billion in cash during the quarter to end with $11.9 billion," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second fiscal quarter of 2007, we expect revenue of $4.8 to $4.9 billion and earnings per diluted share of $.54 to $.56."
Apple will provide live streaming of its Q1 2007 financial results conference call utilizing QuickTime, its standards-based technology for live and on-demand audio and video streaming.
Update: Please see our running list of notes from the conference call.
Comments
Now up over a buck after hours. That's better. Analyst on CNBC attributed strong numbers to "lower priced Ipods driving unit sales". If true Aple would be wise to consider an iPhone with a lower price point. I'll go further, it wil be a blunder not to come out with a lower priced iPhone.
During the quarter, Apple shipped 1,606,000 Macintosh computers and 21,066,000 iPods, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.
edit: I see below that while the Mac sales numbers look good from the last years quarter, I see that this number is fairly flat from last quarter...
There is NO increase in Mac sales over the last quarter, perhaps even a few less.
That's not good. It's well below estimates.
That could be one of the reasons why the after hours stock price hasn't jumped
Next quarters estimates don't thrill me either. Much lower that anyone expected, even with Apple's usual low numbers.
While I'm very happy about the overall numbers, I would have prefered to see more Mac sales, and less iPod sales.
There is NO increase in Mac sales over the last quarter, perhaps even a few less.
That's not good. It's well below estimates.
That could be one of the reasons why the after hours stock price hasn't jumped
Next quarters estimates don't thrill me either. Much lower that anyone expected, even with Apple's usual low numbers.
Yep Mel, Mac sales are surprising disappointing, at least for me. The 'halo affect' better kick in soon. With the strong iPod sales, if it (halo affect) doesn't materialize soon it ain't gonna happen at all.
While I'm very happy about the overall numbers, I would have prefered to see more Mac sales, and less iPod sales.
There is NO increase in Mac sales over the last quarter, perhaps even a few less.
That's not good. It's well below estimates.
That could be one of the reasons why the after hours stock price hasn't jumped
Next quarters estimates don't thrill me either. Much lower that anyone expected, even with Apple's usual low numbers.
I thought the same at first; 10% lower mac units and almost 20% below where I thought it should be. At the same time, they are developing significant mindshare, so let's see where the Q2 goes with it.
I'm not worried about guidance; they beat estimates for this quarter by so much, the extra $.05 that they missed on guidance isn't scary.
It's moving after hours. Should hit about $104 tonight, and keep that going into tomorrow.
But the Mac sales are merely good, considering the circumstances, not great.
I think Apple needs to put more emphasis on what is still a core business for them, after all. iPods and iPhones are great, but a lot of folks were thinking Apple would come closer to 2 million Macs sold during the brisk Holiday season. That came nowhere close to happening, even during a time where the PC world has been in disarray, waiting for Vista, dealing with rampant security issues, and a declining rep. If this isn't a good time to pick up a lot more marketshare (as opposed to 'just some'), what is?
Steve, let's focus a bit more on the 'one that brung ya', ok?
.
I thought the same at first; 10% lower mac units and almost 20% below where I thought it should be. At the same time, they are developing significant mindshare, so let's see where the Q2 goes with it.
I'm not worried about guidance; they beat estimates for this quarter by so much, the extra $.05 that they missed on guidance isn't scary.
It's moving after hours. Should hit about $104 tonight, and keep that going into tomorrow.
Yeah, my realtime stock ticker now shows it up to 96. but it was at 97+ a few moments before, so we'll see.
The conference call has just been announced, but we're waiting.
There is a paradigm shift that is in the wings with Parallels -- and the companies shipping Macs with it (and the beast) pre-configured. I think we are starting to see that shift. They're on the right track, in any case.
There is NO increase in Mac sales over the last quarter, perhaps even a few less.
That's not good. It's well below estimates.
This is weird. I remember last Christmas, Mac sales seeming flat after a back to school boost. And then kicking on from the 1st quarter of the New Year.
In short, perhaps it is the Leopard 'holding pattern' we've seen before.
Reasons for flat Mac sales?
1. Leopard.
2. Choice. Lack of configurable tower in the the £500-£1295 range. (IF they want PC switchers or MORE of them, then give them what they want with Apple style. There's just a gaping hole from the Mac Mini to the Mac Tower. And the iMac just does not fill it. One tower. £595- £1295 using Conroe chips. Very configurable. It may cannibilize iMac sales. But not that much, I'm guessing.)
3. A true OS advertising blitz circa Leopard.
4. A rethink on the 'cheap' Mac. I'm not sure the Mac Mini is it. No keyboard, Monitor etc.
5. iPod/Mac bundle deals. They need to leverage their star performer.
6. Business. Small and Enterprise.
7. More Mac partnerships.
8. A cheapER (But not cheap) Laptop. Keep being aggressive with prices. They've done well since the Intel transition. More choice on the Mac Book Pro. ie 12/13 inch model.
9. Virtualisation. Maybe. For legacy XP apps.
10. Offer more promotions for PC users. ie trade in yer PC for discount off Mac.
11. SHOW what the Mac can actually do in ADVERTS.
Mildly concerned about flat Mac sales. But we've been here before. ANd this is all pre-refresh circa Leopard. And, notably, with (presumably) Intel centric designs...to look forward to.
Lemon Bon Bon
This is weird. I remember last Christmas, Mac sales seeming flat after a back to school boost. And then kicking on from the 1st quarter of the New Year.
In short, perhaps it is the Leopard 'holding pattern' we've seen before.
Reasons for flat Mac sales?
1. Leopard.
2. Choice. Lack of configurable tower in the the £500-£1295 range. (IF they want PC switchers or MORE of them, then give them what they want with Apple style. There's just a gaping hole from the Mac Mini to the Mac Tower. And the iMac just does not fill it. One tower. £595- £1295 using Conroe chips. Very configurable. It may cannibilize iMac sales. But not that much, I'm guessing.)
3. A true OS advertising blitz circa Leopard.
4. A rethink on the 'cheap' Mac. I'm not sure the Mac Mini is it. No keyboard, Monitor etc.
5. iPod/Mac bundle deals. They need to leverage their star performer.
6. Business. Small and Enterprise.
7. More Mac partnerships.
8. A cheapER (But not cheap) Laptop. Keep being aggressive with prices. They've done well since the Intel transition. More choice on the Mac Book Pro. ie 12/13 inch model.
9. Virtualisation. Maybe. For legacy XP apps.
10. Offer more promotions for PC users. ie trade in yer PC for discount off Mac.
11. SHOW what the Mac can actually do in ADVERTS.
Mildly concerned about flat Mac sales. But we've been here before. ANd this is all pre-refresh circa Leopard. And, notably, with (presumably) Intel centric designs...to look forward to.
Lemon Bon Bon
I agree with everything you say here.
But, I still surprised, and somewhat disappointed.
I found it, about 1.25M, vs. 1.6M
http://www.apple.com/pr/library/2006/jan/18results.html
YOY is still pretty good.
As many were, I was hoping for something (announcements, hints, anything) at Macworld, but it didn't work out that way. So now I have put the purchase on the back burner and it is going to stay there until I see something from Apple.
Are the Mac unit sales down year-over-year?
No, up 28%.
But the year before, they were up almost 40% year over year.
Apple shipped 1,606,000 Macintosh® computers and 21,066,000 iPods during the quarter, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.
Mac sales are almost up 30% !!!!
Flat Mac Sales?
Mac sales are almost up 30% !!!!
Quarter to quarter, not year to year.