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Apple Profits Soar 425%; Mac Sales Up 35% [UPDATE]

Apple Profits Soar 425%; Mac Sales Up 35% [UPDATE]

by , 5:00 PM EDT, July 13th, 2005

Apple Computer announced a record quarter today in terms of both sales and profits. The company reported sales of US$3.52 billion, with profits clocking in at $320 million, or $.37 per diluted share. These results compare to a net profit of $61 million, or $.08 per diluted share, and revenue of $2.01 billion in the year-ago quarter. All told Apple's profits rose 425 percent over the year ago quarter, while sales increased 75 percent.

Mac unit sales were 1.182 million, up 35% over the year ago period, and more Macs than Apple has shipped in a quarter in the last four years.

Apple also shipped 6.155 million iPods, which represents a 616 percent jump over the year ago period. This represents another record for the company in terms of units shipped.

"We are delighted to report Apple's best quarter ever in both revenue and earnings," said Apple CEO Steve Jobs in a statement. "The launch of Mac OS X Tiger has been a tremendous success, and we have more amazing new products in the pipeline."

"We're very pleased to report 75 percent revenue growth and a 425 percent increase in net income," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth quarter of fiscal 2005, we expect revenue of about $3.5 billion and earnings per diluted share of about $.32."

In the company's conference call, Peter Oppenheimer said that Tiger represented $100 million in sales, which is the biggest quarter for OS sales in the company's history.

Gross margin was 29.7 percent, up from 27.8 percent in the year-ago quarter. The large jump in margins came in part from the record software sales, where margins are significantly higher than with hardware sales.

The company said that international sales accounted for 39 percent of the quarter's revenue.

The Mac Observer will be following up this story with a detailed report on the company's conference call.


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:boodle Posts: 42 Joined: 13 Jun 2004
Subject: RC, where are you??

how you like them apples?

Close Name:iggyb Posts: 112 Joined: 09 May 2003
Subject: Nice!!

I'd like to know how they did compared to the industry average of PCs sold. Perhaps Apple is outpacing them?

Close Name:dswoodley Posts: 14 Joined: 11 Jul 2004
Subject: RC Lied

But RC!!! You promised last fiscal quarter would be the last good one!! How am i supposed to ever trust you again???


Bwahahaha!!

Close Name:jhonka Posts: 77 Joined: 05 Sep 2003
Subject: Apple is doomed.

These numbers make it clear; Apple will be dead within a year.

Close Name:Mav Posts: 1320 Joined: 17 Oct 2003
Subject:

GO APPLE GO! Talk about an amazing quarter. Mac sales are stellar. iPod sales were huge, and may hint at an even more mind-boggling holiday fiscal quarter (Q1 2006). Anyone who sees any _negatives_ in this report (aside from any hints that might be dropped during the conference call) is simply refusing to see what is an obvious and completely unmitigated success by any objective measure (*cough cough a certain someone from thestreet.com cough cough*). Low guidance for next quarter? This is just Fred Oppenheimer keeping the tradition of conservative estimates and trying (in vain) to lower expectations. Besides, the back-to-school push has just begun, and a refresh or redesign of the iBook seems all but imminent. Lower average selling price per iPod as a concern?! Give me a break. Why, I guess that means that the iPod shuffle is popular after all.

Keep proving the uninformed, naysaying, the-iPod-is-key-but-the-iPod-is-falling critics wrong, Apple.

View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: iPod Market Share Declines
Close Name:jdb1867 Posts: 5 Joined: 24 May 2005
Subject: TheStreet.com calls it a mixed bag

Have we discovered who RC works for?

http://www.thestreet.com/_yahoo/stocks/troywolverton/10232257.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Close Name:Guest
Subject: Read the article

"Still, the consensus among analysts is that iPod sales compared to the previous quarter will be flat, at roughly 5 million units."

Apple shipped 6.155 million iPods ... the consensus was wrong I guess.

Close Name:jimothy Posts: 612 Joined: 04 Jun 2004
Subject: Mac vs. PC sales

Quote
iggyb wrote:
I'd like to know how they did compared to the industry average of PCs sold. Perhaps Apple is outpacing them?

In terms of percentage growth, Apple is outpacing them handily. Industry wide, PC sales are going up by about 10%, so Apple stands to continue to grow marketshare.

And worsening troubles in the Windows world should only help continue this momentum. Check the facts:

http://news.zdnet.com/2100-1009_22-5785181.html?tag=nl.e550

Close Name:dswoodley Posts: 14 Joined: 11 Jul 2004
Subject: You kill me RC

and yet somehow, ITMS share rose to over 80% - could it possibly be due to that fact that absolute sales and relative sales are two different concepts??? check the facts

http://money.cnn.com/2005/07/13/technology/apple.reut/index.htm

RC, you are such a dolt that you actually make me laugh - remember the Iraqi foreign minister who kept telling Iraqi's they were in no danger?

Close Name:zebra451 Posts: 11 Joined: 16 Sep 2004
Subject: does M$ still own appl stock?

inquiring minds want to know!

Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject: RC quotes WRONG information

Ok, if you're going to make an argument, don't quote speculative information released PRIOR to the results and hope it makes your argument for you.

You so need to take some logic, stats, and ethics classes.

But then again, you have to exit the 5th grade first.

Anybody here think I'm being too harsh?

Close Name:Guest
Subject:

Quote
Tiger wrote:
Ok, if you're going to make an argument, don't quote speculative information released PRIOR to the results and hope it makes your argument for you.

You so need to take some logic, stats, and ethics classes.

But then again, you have to exit the 5th grade first.

Anybody here think I'm being too harsh?


not at all, everyboby thinks RC is a septic tanker pumper in reverse

Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: MS doesn't …

own any Apple stock, and hasn't for many years !
When they did, it was only symbolic, as they only invested 100 M$, which is a drop in the bucket considering the total capital value of the company.
A lot has been written and said about that "investment", but what was the really significant thing, when the announcement was made, was that Bill Gates was introduced at the Macworld Expo to assure users of continued support for the Mac version of the Office suite (still a very profitable market for MS!), the symbolic investment being sort of a "guarantee" of good faith.

Close Name:Realty Check Posts: 4 Joined: 27 Apr 2005
Subject: iLemmings are right

You iLemmings have helped me see the light. I'm going to stand in front of an oncomming train. Thanks for all the laughs!

Close Name:Wings Posts: 89 Joined: 30 Mar 2004
Subject: RC, go browse the net

Jimothy posted a link to a report about Window's latest security flaw. Not just a hypothetical one, a good one. All you have to do is VISIT the web site. To quote, "An intruder could take advantage of the JView Profiler flaw by crafting a malicious Web page and persuading a user to visit the site, Microsoft said." Easy enough to get someone to go to a web site huh? Go there on a PC and you're owned by some North Korean. Now if RC would just go there...

Close Name:dhp Posts: 182 Joined: 22 May 2003
Subject: RC Observer

Do you people care about anything other than what some troll thinks? It seems that the majority of the posts on this site are about "RC." I'm going somewhere else.

Close Name:Guest
Subject: Apple has different numbers

Sorry RC but Apple has the real numbers over 6 million. You better get a better source for your facts.

Close Name:Guest
Subject: Man..what r u talkin' about!!

Quote
dhp wrote:
Do you people care about anything other than what some troll thinks? It seems that the majority of the posts on this site are about "RC." I'm going somewhere else.


Oh~~come on, now~~~~~
RC is a legend here!! once u get to know him a little bit better u'll realize that he is a really funny guy!!
plz don't go~~~~give us a chance!!!
:p

Close Name:Guest
Subject: iLemmings are right

The light you've been shown is at the end of the long tunnel

Close Name:Guest
Subject: And Apple OWNS RealityCheck Once Again! (but is that hard?)

Poor RC... he's like the Wile E. Coyote of anti-Apple FUD. Persistent, but always getting blown up or dropped off a cliff by good Apple news.

Go !

Close Name:Guest
Subject: Train wreck

'RC under a train'. Now there's a result LOL Though judging by his previous predictions he would probably miss it.

Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

Quote
dhp wrote:
Do you people care about anything other than what some troll thinks? It seems that the majority of the posts on this site are about "RC." I'm going somewhere else.
I guess this mean's TMO's advertisers are gonna pull all their ads now.

Close Name:LaurieF -   TMO Forum Mod Posts: 3547 Joined: 15 Jun 2001
Subject:

"The company said that international sales accounted for 39 percent of the quarter's revenue."

Cool. So the rest of the world is important after all. Now it's about time Apple started taking more notice of us, and putting pressure on its local representatives to drop the prices to be more on a par with those in the US.

Maybe putting New Zealand up there with Suomi, Faroese and Inuit for localisation wouldn't go amiss either.

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