Apple on Wednesday announced financial results for its fiscal 2006 third quarter ended July 1, 2006, posting revenue of USD 4.37 billion and a net quarterly profit of USD 472 million, or USD 0.54 per diluted share. These results compare to revenue of USD 3.52 billion and a net profit of USD 320 million, or USD 0.37 per diluted share, in the year-ago quarter. Apple shipped 1327000 Macintosh computers and 8111000 iPods during the quarter, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.
Apple Posts USD 472M Profit on Revenues of USD 4.37B
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2006-07-19 10:02 pmD3M0N
I remember reading a while ago that Apple doesn’t get very much from its music sales as most of the money goes to the labels. The music store definitely isn’t hurting them though. It’s obviously been wildly successful.
2006-07-19 10:11 pmMitarai
The music store is just the decoy to the iPod, so I guess with the movie the choices are:
a) more revenues for apple per movie sold.
b) we will se an iPod that plays these movies.
Only time will tell.
2006-07-19 11:24 pmSabon
iTunes isn’t a decoy. Apple has stated quite a few times that the iTunes store exists solely to get people to buy iPods. If they didn’t sell iPods there would be no reason to have iTunes or the iTunes store. To repeat myself. Itunes and the iTunes store exist only so that people have a reason to buy iPods by giving them an easy to use store and easy to use programs to store and group their songs.
2006-07-19 11:37 pmCPUGuy
Hece the term decoy….
2006-07-20 1:18 pmCaptainPinko
Decoy implies that it is hidden… if there are open about it there it’s hard to call it a decoy.
2006-07-20 7:09 pmTuishimi
No, A decoy is never hidden. You aren’t a hunter are you?
These are excellent results that discard the pundits’ claims that Apple couldn’t sustain its earnings on the short term.
Yet again, the speculators have ruled since the beginning of the year (recall the 29% drop in Apple’s stock value). Fortunately, this won’t be noticed by the investors — those who do it on the long term.
I guess there won’t be another chance for getting a bargain out of Apple’s stocks. Hardly will the stocks drop again as steady as they did. It was definitely a great investement for anyone who ought to buy his shares since 2003.
2006-07-20 7:35 amalcibiades
Worth looking at carefully. We seem to have dropped from 85 to 50 and then rallied to 55. We still seen to be on a PE ratio of 27 according to Morningstar. That is not a bargain.
Call me when the PE ratio is 12 or lower and the forecast is for falling sales, and the analysts can’t see it going anywhere.
Edit: also have a look at
Greenberg is usually right in the long term.
Edited 2006-07-20 07:54
What seems to be the hidden story in these Q3 results is how incredibly well the Intel switch is going at this point. Apple sold the highest number of Macs in a quarter since 2000, yet the desktop sales went DOWN, due to people waiting for new Power Macs and Xserves. The notebooks counted for 798,000 units — giving Apple a new U.S. notebook marketshare of 12%. Whoa! And that’s with Macbooks still ramping up production.
Fast forward a couple of quarters with the Intel desktop line complete and the Macbook + Pro lineup going gangbusters. I think we’ll easily get to 1.5 million Macs soon. Then what? 2 million? It’s not out of the question.
Apple’s going for the jugular in the PC world with this Intel switch. The pundits who predicted the demise of the Mac and Apple’s shift to consumer music + video products were wrong. Dead wrong. Dude, who cares about Dell?
These results are just another proof that Apple is about to go under. </sarcasm>
Catalyst would be a better term.
Dell and Apple cannot be compared. MS and Apple can.
The people will turn on Apple eventually. The little nasty things they do that the Mac fans ignore will get bigger and bigger… History will repeat again I believe with Apple. They will be responsible for their own demise. Enjoy the good times. Apple is not a non-profit organisation. They don’t exist for the people. I wish Apple all the best, and their fanatic users all the worst.
2006-07-20 3:25 amtertiary_adjunct
“Dell and Apple cannot be compared. MS and Apple can. “
How you figure? Microsoft’s primary business is software. Dell’s primary business is hardware as is Apple’s.
2006-07-20 11:44 pmtryphcycle
Apples Primary Business are SYSTEMS…. meaning hardward and sorfware!!!!!! THAT is totally obvious!
2006-07-20 4:14 amwalterbyrd
>>Apple is not a non-profit organisation<<
Could you cite a source on that please?
2006-07-20 4:55 amtertiary_adjunct
“>>Apple is not a non-profit organisation<<
Could you cite a source on that please?”
Sure. How about the article that this thread is linked to where Apple’s profits are discussed?
How about Apple’s SEC filings where they discuss profits?
“not a non-profit” would mean that it is for profit.
2006-07-20 7:13 amRayz
What nasty little things are you talking about?
2006-07-20 10:28 amBringbackanonposting
“What nasty little things are you talking about?”
Haha precisely my point! Say hello everyone to one of our Mac readers who hust arrived. Hi Rayz. Nasty things? Don’t let them worry you. The only nasty things you need to worry about are us non-Mac users that say mean things about Mac-users. Here, have a cookie.
2006-07-20 11:08 amManik
For your problem, I’ll recommend a daily dose of lithium, and eventually some Valium.
Consider it your anti-virus.
2006-07-20 2:52 pmRayz
Actually son, I think you should read a few of my other posts; I’m not a Mac fan, but I also don’t think that Apple has done anything that is particularly ‘nasty’.
Though many of their resellers may disagree.
Today they rule the iPod, tomorrow the world!!! muwhahahaha! The next iPod lets you kill people with overly elaborate methods that take a long time. So of course you leave the room while it transpires. Unfortunately this is when they escape only to come back to destroy your lair in a volcano!
Edited 2006-07-20 04:03
2006-07-20 6:45 amPlatformAgnostic
I need some of what you’re smoking… real bad.
2006-07-20 6:51 amcerbie
That’s why I’ll have a little Korean player again, with rockers or a stick, instead of that silly slickwheel. It won’t look snazzy, but I will able to kill people with it with fewer steps, faster, and not as much thumb strain.
Unfortunately, I probably won’t land anyone like a Bond Girl with such a deadly player that lacks style. *sigh* Will I really want to rule the world from my underground volcano if I can’t even get the chicks with my doomsday devices?
… nothing to do with the fact that folk can now run Windows on their macs?
No stopping the iPod though … 😐
good for Apple. i am glad to hear that they are doing great because they are offering great products. My wife loves her iPod Nano and I am buying another one tomorrow. If you can offer me great products, why would i buy mediocre products like …………………………Microsoft???
Ever since Apple made a comeback everyone has been watching them like a hawk, waiting for any excuse to lower their rating. After the 1990s I can’t really blame them from being so cautious with tech stocks, but this is ridiculous.
It’s true that Apple cannot keep the mp3 player market locked up forever, however, I predict that their computer sales will continue to increase in a slow but steady climb toward the iPod, even after it begins to fall.
The fact that their computer sales are increasing when the only new products they have on the market are Core Duo labtops that make funny noises, change colors, and can serve as a skillet and a Core Duo iMac (still don’t understand how they got away with that) is absolutely amazing. Yes, their hardware quality in terms of problems / defects is falling apart but I expect that to change in the near future (with the possible exception of the first generation Mac Pro Desktops).
Once the Mac Pro line gets established, their labtops get upgraded to Merom processors, and the iMac (hopefully) gets upgraded to a Core 2 Duo you can expect Mac sales to soar regardless of what the iPod does.
2006-07-20 1:04 pmTomB7
The fact that their computer sales are increasing when the only new products they have on the market are Core Duo labtops that make funny noises, change colors, and can serve as a skillet and a Core Duo iMac (still don’t understand how they got away with that) is absolutely amazing.”
Ummm. My MacBook is fine. According to the data I’ve seen, Apple has better build quality than the other PC makers.
I am disappointed with the quarterly results 12% higher sales of Macs? I expected more switchers, based on anecdotal “buzz”.
2006-07-20 2:37 pmtertiary_adjunct
“I am disappointed with the quarterly results 12% higher sales of Macs? I expected more switchers, based on anecdotal “buzz”.”
A lot of people are waiting for Core 2 Duo. Others are waiting for the PowerMac replacement. Still others don’t want to buy a generation 1 MacTel (myself included). I am sure there are also some waiting for Leopard.
I don’t expect a much higher jump in sales after all this happens though. The majority of people out there still think Macs are slow and though they don’t know what to call it, still think Apple is using PowerPC chips. The vast majority of people out there have no clue about Apple’s new products and as a result Apple is battling with 20 years of public perception. Just the other day, a software engineer at my lab seemed surprised to learn that Apple has Office running. “yeah…but it’s not Microsoft Office” was what was actually retorted to me. The software engineer seemed surprised when I pointed out that it was from Microsoft and actually had a few features that the Windows version didn’t. That’s just one example where you have someone who knows about computers, but doesn’t have any idea about alternatives to Windows much less what Apple is offering these days because of history. People are used to Windows and Dull (er…Dell), so that’s what they buy, without looking elsewhere.
2006-07-20 5:02 pmTomB7
“he vast majority of people out there have no clue about Apple’s new products”
Sigh! The only thing standing between people and productive computing is ignorance. But then, I guess you can say the only standing between us and productive government (in the US) is ignorance.
Still, I think Apple’s overall strategy is sound. Cars didn’t overtake horses overnight, either.
I’m very happy to see this
– yes! –
If this is caused by the music download services I can’t imagine how will be when you can buy movies.