Feeds

Apple cautious after record quarter

Osborne sneeze, but no flu

The essential guide to IT transformation

Apple posted a record quarter but gave a cautious outlook today, as Mac sales have started to slow down during the transition to Intel processors.

The company cleared a profit of $565m on record earnings of $5.75bn in Q1 2006, which ended 31 December, and which included the Christmas shopping season. More than half of Apple's income, worth $2.9bn, came from iPods.

That compares to $3.68bn revenue and $430m profit in Q4 2005.

But Apple gave a cautious outlook for Q2, and the company's CFO gave the first indication that the company was experiencing a so-called 'Osborne Effect', the erroneously named consequence of buyers delaying their purchases after new product is announced but not yet delivered.

"We did see what we think was a bit of a pause from some customers associated with the Intel transition," said Apple CFO Peter Oppenheimer.

Since Apple announced the transition in June, any Osborne factor has been offset by Mac users, particularly in the professional market, stocking up on the last of the PPC Mac models in anticipation of a lengthy transition. That's a prudent move, as x86 binaries from Adobe are at least a year away, and the Rosetta emulation fails to bring any performance advantage, even on the newer, faster machines.

Portable Mac sales fell sequentially, from 634,000 units to 587,000 units, although this was more than offset by a sequential increase in desktop sales, which grossed $912m in the quarter, up from $787m in Q4 2005.

Apple said first quarter profits would come in at 42 cents per share on sales of $4.3bn, lower than the 48 cents and $4.63mbn a sample of pundits had predicted. Apple shares fell six per cent in after hours trading. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.