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
Wed Jul 13, 2005 5:08 pm Subject: RC, where are you??
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.
Wed Jul 13, 2005 5:40 pm Subject: iPod Market Share Declines
Wed Jul 13, 2005 5:42 pm 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
Wed Jul 13, 2005 5:47 pm Subject: Mac vs. PC sales
Quoteiggyb 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
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?
Wed Jul 13, 2005 5:51 pm Subject: does M$ still own appl stock?
Wed Jul 13, 2005 5:58 pm 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?
QuoteTiger 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
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.
Wed Jul 13, 2005 6:19 pm Subject: iLemmings are right
Wed Jul 13, 2005 6:20 pm 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... ![]()
Quotedhp 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
Thu Jul 14, 2005 3:05 am Subject: And Apple OWNS RealityCheck Once Again! (but is that hard?)
Thu Jul 14, 2005 9:25 pm 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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