The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
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

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: TWO MILLION iPODS!?! (Mav)

Just...oh wow. So powerful is this single figure that I was compelled to post from work, just this once.

Close Name:Guest
Subject:

HAAAAAAAAa...and the analysts started at .18 a share...and raised it to .19 due to strong iPod sales...LOL...wow, they were off a bit.

Close Name:mrmgraphics Posts: 825 Joined: 05 Sep 2003
Subject: Wow!

+

The 6% increase in Mac sales is great news. The 2+ million iPod sales, though, are staggering. Remember when they topped 800K and everyone thought it was great? What will this upcoming holiday fiscal quarter see??

Close Name:Guest
Subject: Hahahahahah Where's RC?!!!!

He's suddenly absent.

Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: That's It?

$106 million? 2 million iPods?

That's all?

Please add me to the Death Knell, Bryan. Apple is OBVIOUSLY going under this time. there's no way they can continue with this kind of lackluster performance.

View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Told You So - Mac Market Share Down 7%
Close Name:pourhadi Posts: 55 Joined: 15 Aug 2004
Subject: Woo!

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

Close Name:Guest
Subject: Not Just a Bang!

KaBoom!!

Close Name:Guest
Subject: Boom! Boom!! Boom!!!

That's the sound of jaws hitting the floor at M$, Creative, Rio, Virgin, Sony, Dell, x, y, z, ....

Close Name:Guest
Subject: Desktop Sales

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.

Close Name:DawnTreader -   TMO Staff Posts: 15039 Joined: 04 Jan 2002
Subject: Re: Told You So - Mac Market Share Down 7%

Quote
RealityCheck 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.

Close Name:DawnTreader -   TMO Staff Posts: 15039 Joined: 04 Jan 2002
Subject:

We are following Apple's finance results in the Apple Finance Board forum.

Close Name:John F. Braun -   TMO Staff Posts: 233 Joined: 11 Jun 2001
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.

Close Name:DawnTreader -   TMO Staff Posts: 15039 Joined: 04 Jan 2002
Subject: Re: I'm a Happy Stockholder!

Quote
John 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

Close Name:macjim Posts: 35 Joined: 23 May 2004
Subject: motleyfooled?

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!

Close Name:kenaustus Posts: 602 Joined: 27 Jun 2003
Subject: RC must be suffereing

Had to laugh at how hard he looked to try to find something.

Gee, Apple only beat Wall Streets estimates by 50% - let's see the PC world come close.

Apple does have one major source of new revenues that they could pick up - license Spotlight to MS for Longhorn. Mwahahahaha.

Close Name:Guest
Subject: RC Needs to Take More Math Classes

Quote
RealityCheck wrote:
So the Mac market share that was 1.7% now drops below 1.6%, a decline of 7%.


Sorry RC, but 1.7% - 1.6% = 0.1%. Looks like you slipped through the cracks in the No Child Left Behind initiative.

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.

Comments are currently closed. Please email the author instead.


Recent Headlines - Updated February 9th

Mon, 5:37 PM
News - Juniper Readies Software to Improve Cell Carrier Networks
5:17 PM
Macworld Expo - Macworld Expo 2010 Hess Party List Goes Online
4:11 PM
News - Survey: iPad Announcement Increased Awareness, Fails to Convert New Buyers
3:30 PM
TMO Appearances - Dave Hamilton Keeps Your Mac Lean and Clean at Macworld Expo
1:10 PM
TMO Appearances - Mac Geek Gab Live Recording at Macworld Expo
12:39 PM
Deal Brothers - Western Digital 750GB My Passport Essential SE Portable Hard Drive:  $129
11:46 AM
Product News - nova media Intros FoneSync for LG Handsets
11:15 AM
News - Pwnage Tool 3.1.5 Adds iPhone OS 3.1.3 Support
10:35 AM
News - Mobily Adding iPhone Tethering Support in February
10:00 AM
Hot Forum Topic - Apple, Google and the Evolution of the Smartphone Market
9:30 AM
Monday's Mac Gadget - Want to Secure Your Data Across Platforms?  Check out TrueCrypt!
8:50 AM
News - ITC Investigating Apple in Nokia Complaint

The Mac Observer Reader Specials

  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!