Feeds

Apple cautious after record quarter

Osborne sneeze, but no flu

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

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
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
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
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
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

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.