Apple Posts Profit of $106 Million, 2 Million iPods Sold [UPDATED]
Apple Posts Profit of $106 Million, 2 Million iPods Sold [UPDATED]
by , 4:35 PM EDT, October 13th, 2004
Apple Computer reported Wednesday fiscal fourth-quarter net profit of US$106 million, or 26 cents a share, on revenue of $2.35 billion. Excluding $4 million in after-tax restructuring charges, Apple earned $110 million, or 27 cents a share.
Revenue was bolstered by the sale of 2,016,00 iPod and iPod mini portable digital music players, the company said, as well as 836,00 Macs. That represents a 6% increase in Mac unit sales compared to last year, and a 500% increase in the number of iPods sold.
"We're pleased to report 37 percent revenue growth for the quarter and operating margin above 5 percent," said Apple Chief Financial Officer Peter Oppenheimer in a prepared statement. "Looking ahead to the first quarter of fiscal 2005, we expect revenue of between $2.8 and $2.9 billion, operating margin above 7 percent and earnings per diluted share of $.39 to $.42."
Analysts polled by Thomson First Call expected Apple to earn 18 cents a share, on $2.1 billion in revenue, for its just-ending fiscal fourth quarter. During the same period a year ago, Apple earned 8 cents a share on revenue of $1.72 billion.
For the full fiscal year, Apple reported profits of U$276 million on revenue of $8.28 billion. This compares to a net income of $69 million on revenue of $6.21 billion in 2003.
Apple stock (AAPL) closed Wednesday up $1.46, or 3.81%, at $39.75 on volume of 14.2 million share
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
Observer Comments
Wed Oct 13, 2004 5:14 pm Subject: Told You So - Mac Market Share Down 7%
Good numbers, Apple!
"Mac unit sales only increased 6% while the most current IDC report says that overall PC sales are up 14%. Check the facts: "
Well, use that thing in your head (brain), and you may realize that that 14% are people who already own computers, buying new machines. Not people who've never owned machines just entering the market.
That number means nothing in terms of the Mac's market share.
Why are you even here? Do you *really* have this much free time on your hands?
-Dan Pourhadi
Apple admitted that desktop sales were not as robust as they had hoped because IBM HAS NOT YET DELIVERED G5 CHIPS AS PROMISED. Yet, total desktop sales were up 6% from a year ago. They hope supplies will be less constrained the next quarter. As a matter of fact they upgraded guidance to 40 cents from about 30 cents. HP iPod deliveries only accounted for 6% as they only started shipping in September. iMac G5 shipments were also constrained due to chip shortages. Apple is doing great. iBook and Powerbook sales were amazing... that's where the market is right now.
Wed Oct 13, 2004 5:46 pm Subject: Re: Told You So - Mac Market Share Down 7%
QuoteRealityCheck wrote:
Mac unit sales only increased 6% while the most current IDC report says that overall PC sales are up 14%.
No, please check YOUR facts. As Apple executives said in the conference call with analysts, sell through in the channel exceeded the sell in which means Apple significantly reduced channel inventory during the period. This means as supply of the G5 chips meets with demand in fiscal quarter 1, there are several weeks of channel inventory to fill meaning a huge increase not only in unit shipments but in share as well.
Further, margins are up on all product lines.
Wed Oct 13, 2004 5:47 pm Subject:
We are following Apple's finance results in the Apple Finance Board forum. 
Wed Oct 13, 2004 5:52 pm Subject: I'm a Happy Stockholder!
If the worst thing RC can whine about is a faulty measure of overall market share, then you know Apple has done quite well.
And while he's going on about market share percentages, those of us who own Apple stock are getting pretty pumped by the percentage increase for the stock itself. Up 3.81%, to 39.75, at close of market today, and up a whopping 6.79%, to 42.45, in after-hours trading.
Wed Oct 13, 2004 6:44 pm Subject: Re: I'm a Happy Stockholder!
QuoteJohn F. Braun wrote:
And while he's going on about market share percentages, those of us who own Apple stock are getting pretty pumped by the percentage increase for the stock itself. Up 3.81%, to 39.75, at close of market today, and up a whopping 6.79%, to 42.45, in after-hours trading.
The quarterly results are staggering
looks like that anti-apple rant claiming shares were overvalued has a bit of crow to eat, so far...
He did point to Apple's operating margins of 3% being lower than Dell's 8.5% or Microsoft's 24%., but from another viewpoint that's Apple pushing hard to give consumer value - so much for the usual claim that macs are overpriced!
Thu Oct 14, 2004 12:24 am Subject: RC must be suffereing
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