Feeds

iPod surge boosts Apple earnings

iMacs help too

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

A new iMac and the smash hit iPod gave Apple a boost in the quarter ending 31 December. Apple posted revenues of $3.49bn for the three-month period, Q1 FY2005, up 74 per cent from last year, and profits continued to break out, up to $295m (70 cents a share).

The iPod accounted for much of the success, selling 4.58m units in the holiday season, double the previous quarter. But Apple topped a million Macs sold, too, or 26 per cent higher than a year ago. As an indication of the iPod's growth ramp, the music jukebox outsold CPUs only three quarters ago. Gross margin rose slightly to 28.5 per cent, up from 26.7 per cent.

The company said it had enough G5 chips to fulfil demand for the iMac; only supply of the 2.5GHz processor, used in the PowerMac line, was constrained. Executives attributed the better-than-expected figures to more people buying the more expensive iMacs, and more customers buying direct. Direct sales - which includes the bricks and mortar retail stores - was up 45 per cent for the quarter.

In response to questions about yesterday's budget Mac and iPod, Apple said that Mac Mini margins were similar to the eMac, which is below the corporate average, that iPod margins "were close to 20 per cent", and that iPod Shuffle margins were below 20 per cent.

Apple sold 456,000 iMacs and eMacs (229,000 the previous quarter), 152,000 Power Mac CPUs (down from 156,000 in Q4 04), 271,000 iBooks and 167,000 PowerBooks.

Apple's online music store is running "just above break-even" said executives, but the company didn't see this as a profit center and was prepared to see it make a loss in order to grow, by cutting prices, or recruiting more staff to "take it new places". (Executives ducked questions about possible movie downloads) .

"Selling music will help us sell iPods, and that will help us sell computers," CFO Peter Oppenheimer said. ®

Related Stories

Apple shares hit four-year high
Apple profits leap as iPod sales rocket
Apple stores are in the black
Apple posts highest revenue for three years

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.