Continued Growth Expected From Apple Juggernaut

by , 12:50 PM EDT, October 23rd, 2007

Apple finished a year of unprecedented momentum, and the results are expected to continue with sustained demand for iPhones and iPods, according to the Associated Press on Tuesday.

Apple's earnings were US$3.5B for the fiscal year, up more than 75 percent from the previous year. Yearly sales reached US$24B, a 24 percent jump from fiscal 2006.

The more than 120 million iPods, most sold to PC users, seem to be having the intended halo effect. Just a few years ago, Macintosh sales lingered at 2 to 3 percent of PC sales. Now, Apple's market share in the U.S., at least, is over 8 percent according to Gartner.

"It's clear the Mac is going mainstream," said Piper Jaffray analyst Gene Munster. "Two years ago you had to explain to your friends why you are buying a Mac, now you have to explain why [you] are buying a PC."

In addition, the iPhone now appears to be another money making engine. Stephen Coleman, chief investment officer at Daedalus Capital LLC, thinks the iPhone "is a game-changing product." In his assessment of the income generated so far, he said, "I expect Apple's earnings to continually grow materially at 50 percent a year, for the next three years."

Apple expects revenue in the holiday season quarter to be in excess of US$9B. "We're looking forward to a strong December quarter as we enter the holiday season with Apple's best products ever," said Steve Jobs, Apple's CEO.