Feeds

For Apple, Halo effect eclipses Osborne effect

Stock drops 10pc on iPod anxiety

Intelligent flash storage arrays

There can be little doubting that the iPod 'halo effect' now shines a positive light on Apple's Mac sales. Strong US educational sales, particularly into Higher Education, also helped the company shrug off fears of an 'Osborne Effect' prior to next year's move to Intel processors. In fact, Mac sales were up 48 per cent year-on-year. However fears about soft iPod sales caused Apple stock to drop 10 per cent in after hours trading.

The fourth quarter of 2005 saw revenue of $3.68bn and a net profit of $430m, up from $2.35bn and $106m a year ago, and The year brought home $13.93bn and a net profit of $1.33bn.

But what of the source of the halo effect, the iPod? Surprisingly, and despite ten consecutive quarters of growth for the iPod, Apple found itself fending off criticism of "weak" iPod numbers. Apple sold 6.45m iPods in the quarter, only 5 per cent up from the previous quarter, but 1m of these were iPod Nanos shipped in the last 17 days of the period. One analyst described the 5.4m non-Nano iPods sold as "pretty light demand".

Apple responded that Mini shipments were wound down prior to the Nano launch, that overall iPod sales came in as expected, that it couldn't meet Nano demand, and that the company would be launching new products in the music segment in time for the holiday season.

Apple has a product event scheduled for tomorrow - and CFO Peter Oppenheimer hinted at a strong PowerPC product pipeline ahead of the Big Switch.

In terms of Mac sales, Apple set a record of 634,000 iBook and PowerBook shipments for the quarter, 139,000 more than last year, but the strongest growth year-on-year came from desktop and server sales. Mac Mini, iMac, eMac, PowerMac and Xserve were up 56 per cent in terms of units and 42 per cent higher measuring revenue. Portable revenue was up 22 per cent on 41 per cent more units shipped.

Quarter-on-quarter however, desktop unit shipments declined 12 per cent.

Overall, Mac shipments units are 48 per cent higher year-on-year, compared to IDC's PC market growth of 13 per cent.

Notably absent was any mention of the iTunes Music Store's performance. Apple's financial officers, however, were happy to declare that the philosophy and strategy behind the store remained unchanged: it helped shift iPods and Macs. ®

Bootnote: The 'Osborne Effect' is a myth, readers reminded us recently.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.