Apple Reports Record Revenue, But IPods Show Little Growth

By Wolfgang Gruener, published on April 23, 2008 at 6:40 PM
Source: Tom's Guide US | Keywords: , , | Themes: Business, Audio/Video Players
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Cupertino (CA) - Apple posted another solid quarter, showing substantial year-over year growth. Most of the added revenue comes from surging notebook sales as well as the iPhone. For the very first time, iPod sales very virtually flat and contributed little to the additional revenue.

Apple said that its first quarter (fiscal Q2) revenue came in at $7.51 billion, compared to $5.26 billion last year. The profit was $1.05 billion, exceeding the firm’s Q2 2007 of $770 million.

According to the company, 2,289,000 Macintosh computers, 10,644,000 iPods and 1,703,000 iPhones were shipped during the quarter.

"We’re delighted to report 43% revenue growth and the strongest March quarter revenue and earnings in Apple’s history," said Steve Jobs, Apple’s CEO. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."

However, the result appears to be a mixed bag of good and bad. On the positive side, notebook sales surged from 891,000 units in Q2 2007 to more than 1.4 million this year. Notebook revenue climbed $1.4 billion to $2.1 billion. Desktop units also increased, albeit on a slower pace (626,000 to 856,000 units).

The iPhone sales are still not at the level Apple would need to hit its 10 million-per-year-target. 1.7 million phones, however, brought in $378 million, which was more than what the company saw coming in from 2.3 million iPhones in the preceding quarter ($241 million).

Concerns could be emerging over Apple’s iPod sales, which are showing negligible unit growth over the year. 10,644,000 iPods compare to 10,549,000 million iPods in Q2 2007. Revenue from iPods, however, increased from $1.7 billion to $1.8 billion, which indicates that able was successful in raising the average selling price of iPods and convincing more people to purchase the more expensive iPod touch instead of Nano models.

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brendano257 04/24/2008 1:21 AM
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Maybe everyone already has an Ipod It's a great product, but I'd say you can only sell so many before people get tired of a slightly different model each 1/2 year. I've had a Ipod nano first generation black/white with metal back 2 GB model for almost 2 years now still running great.

daveola 04/24/2008 2:48 AM
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If Apple would stop the stupid way they market the iPhone and let other companies other than AT&T use it, they would not be able to keep up with production. I got one for my wife and it is a great piece of technology, but I would not get another one for me simply because of the plan price and AT&T

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