Feeds

Apple profits leap as iPod sales rocket

Over 2m players sold, masking Mac decline

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Apple saw profits more than double year on year during the fourth quarter of its 2004 fiscal year, the company reported yesterday.

Profits totalled $106m (26 cents a share), up 41 per cent from $44m (12 cents a share) this time last year, and 74 per cent up on Q3.

Revenue for the quarter reached 2.35bn, 37 per cent higher than Q4 2003's $1.72bn and 17 per cent up on Q3's $2.01bn.

It's not hard to guess where the increased revenue - and thus the profitability - came from. That's right, iPod. Apple sold 2.016m iPods, up 134 per cent on Q3's 860,000 total. That takes the iPod grand total to just under 5.74m units, well ahead of expectations. If the holiday sales period proves as successful as the back-to-school time has, Apple should easily reach a iPod installed base of over 8m by the end of calendar 2004. Competition is certainly becoming more fierce, with strong rival products from Creative, Rio and Sony. But they have yet to gain the iPod's level of street cred, and with their multi-colour, iPod Mini-esque styling risk being perceived as 'me too' products.

iPod's success masked a decline in Mac sales, which fell from Q3's 876,000 units to 836,000, a decline of almost five per cent. Given Apple wasn't selling iMacs through July, August and a good portion of September, it has clearly got away with a smaller than expected decline, almost certainly a sign of the strength of demand for its notebook products, particularly with back-to-school buyers.

For FY2004 as a whole, Apple shipped 3.29m Macs, up nine per cent on FY2003's 3.01m, so there's clearly good, increasing demand for the company's computers. It sold 4.42m iPods during FY2004. We don't have a comparable total for FY2003, but it's likely to be significantly lower.

Annual income totalled $276m on year-total revenues of $8.28bn, up from $69m and $6.21bn, respectively, for FY2003.

"Looking ahead to the first quarter of fiscal 2005, we expect revenue of between $2.8bn and $2.9bn, operating margin above seven per cent and earnings per diluted share of 39-42 cents a share," said Apple CFO Peter Oppenheimer. ®

Related stories

Apple iPod grabs 82% US retail market share
Apple unveils iMac G5
Apple files 'chameleon' computer case patent
Euro filing reveals Apple 'handheld computer'
History repeated as Apple slams CPU supplier
Apple to ship next-gen iMac in September

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.