Feeds

Apple cautious after record quarter

Osborne sneeze, but no flu

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
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 cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.