Feeds

Apple acknowledges Intel hiccup

Wanted: Universal Binaries

Next gen security for virtualised datacentres

Apple recorded the second strongest quarter in its history ending March 30, bested only by the Christmas quarter that preceded it.

2Q FY2006 brought home a profit of $410m on revenue of $4.36bn, up 41 and 34 per cent respectively.

iPod revenue accounts for half of Apple's income, explaining why gross revenue was down 24 per cent sequentially. When it was purely a computer company, Apple could expect strong new year quarters on the back of product launches from MacWorld. Today, with a fashionable consumer range within the price range of potential Christmas shoppers, more fluctuations can be expected.

As an indication of how much Christmas helped the iPod, revenue from sales of the MP3 player fell from $2.9bn to $1.7bn, while music sales remain soft: revenue from iPod related products, including iTMS, fell $6m to $485m.

But the underlying numbers look even better than the headlines, with sales rising $1.1bn year on year, and cost of sales rising by just over $800,000. So Apple's R&D investment was able to rise from $119m to $176m, because it could afford to.

Gross margin was steady at 29.8 per cent.

Apple executives admitted that professional computer users were waiting for Universal Binaries from ISVs, to run on the Intel-based PowerMacs due later this year. While Apple has ported Final Cut Studio, Aperture and Logic to Intel, suites from Adobe and Microsoft will take some time.

"Our sales teams didn't discourage customers from waiting until the Intel models arrive," said CFO Peter Oppenheimer of the retail channel.

Apple posted a steady outlook for Q3, with revenue in the range $4.2bn to $4.4bn, with earnings 39c to 43c a share (GAAP, diluted) compared to 47c for Q2. This includes a 4c per share charge for non-stock based compensation.

Steady as she goes, then. ®

Secure remote control for conventional and virtual desktops

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
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.