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Macintosh and iPod drive Apple - New York Times

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  • John Rethorst
    http://www.nytimes.com/2007/04/26/technology/26apple-web.html SAN FRANCISCO, April 25 — Apple Inc. surpassed even the most optimistic forecasts for its
    Message 1 of 3 , Apr 25, 2007
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      http://www.nytimes.com/2007/04/26/technology/26apple-web.html

      SAN FRANCISCO, April 25 — Apple Inc. surpassed even the
      most optimistic forecasts for its usually tepid second
      quarter, delivering an 88 percent increase in profit on
      strong sales of Macintosh computers and iPod music players.
      The company said on Wednesday that its profit rose to $770
      million from $410 million in the comparable quarter last
      year. Apple sold 1.5 million Macs in the quarter, a record
      for the company.

      In an interview, Steven P. Jobs, Apple's chief executive,
      called the quarter a "blowout," and noted that the strong
      sales and market share gains came even though the company
      had not made any major upgrades to its lines of portable
      and desktop computers.

      "The Mac is clearly gaining market share, with sales
      growing 36 percent — more than three times the industry
      growth rate," Mr. Jobs said. Overall personal computer
      sales increased only about 11 percent during the quarter,
      according to the market researcher IDC.

      Apple's strength was particularly notable in that it came
      during the quarter in which Microsoft finally released the
      long-awaited Vista version of its Windows operating system,
      an event that the PC industry was counting on to spur a
      wave of computer upgrades.

      Mr. Jobs noted that Dell had recently returned an earlier
      version of Windows to its product line, which he said was
      an indication that demand for Vista had not been
      overwhelming.

      Apple reported revenue of $5.26 billion, an increase of
      more than 20 percent over the $4.36 billion in the same
      period last year. Per-share profit increased to 87 cents
      from 47 cents.

      On average, analysts were expecting earnings of 64 cents a
      share on sales of $5.17 billion for the quarter, according
      to a survey by Thomson Financial.

      Apple executives said the company benefited from lower
      component costs, as well as surging demand for notebook
      computers. Of Apple's total computer sales, 59 percent were
      notebooks.

      The earnings report sent shares of Apple up more than 7
      percent to $102.44 in after-hours trading on Wednesday,
      topping the $100 mark for the first time. The shares rose
      $2.11 to close at $95.35 in the regular trading session.

      It was Apple's profitability during the quarter that most
      impressed Wall Street analysts. Its gross profit margin
      reached 35.1 percent, up from 29.8 percent in the year-ago
      quarter. Company executives said it was the company's most
      profitable second quarter ever. Sales typically slow in the
      second quarter as it comes between the holidays and buying
      for school in the fall.

      "They're defying the laws of gravity when it comes to
      profitability," said Eugene A. Munster, an analyst at Piper
      Jaffray.

      Peter Oppenheimer, Apple's chief finance officer, told
      analysts +that he expected gross margins to decline during
      the third quarter, to about 32 percent. Apple tends to sell
      lower margin computers to school districts in the third
      quarter, and component prices are also expected to be
      higher, he said.

      In the third quarter the company expects revenue to climb
      to about $5.1 billion and earnings to reach about 66 cents
      a share, slightly lower than analysts' forecasts.

      Mr. Munster said the appeal of the Macintosh was clearly
      expanding beyond its traditional niche. "There's a global
      shift in how people see personal computers — for
      entertainment, creativity and good looks," Mr. Munster
      said. "Apple has found that sweet spot, and with almost no
      competition."

      Apple said Mac sales accounted for 56 percent of revenue
      during the second quarter, with music-related products,
      including iPods and iTunes sales accounting for the other
      44 percent.

      Apple sold 10.5 million iPods during the quarter. Earlier
      this month the company said it had sold a total of 100
      million iPods.

      Apple had earlier said it was delaying the release of the
      next version of its Mac operating system, called Leopard,
      because it needed to divert resources to its iPhone
      project. The iPhone is scheduled to ship in late June,
      through an agreement with Cingular, and cost between $500
      and $600. Mr. Oppenheimer said that because Apple planned
      to deliver periodic software enhancements to the iPhone,
      accounting rules would require it to book deferred revenue
      and costs and amortize both over a two-year period.

      Apple said it ended the second quarter with $12.6 billion
      in cash.
    • Paolo Tramannoni
      And Corel continues to think the Macintosh market is not interesting enough... Paolo
      Message 2 of 3 , Apr 26, 2007
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        And Corel continues to think the Macintosh market is not interesting
        enough...

        Paolo
      • Randy B. Singer
        ... Actually, they don t seem to think that. In this recent discussion they acknowledged that the Macintosh market is growing and they showed some interest in
        Message 3 of 3 , Apr 26, 2007
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          On Apr 26, 2007, at 6:29 AM, Paolo Tramannoni wrote:

          > And Corel continues to think the Macintosh market is not interesting
          > enough...

          Actually, they don't seem to think that.

          In this recent discussion they acknowledged that the Macintosh market
          is growing and they showed some interest in developing for the
          platform again:

          http://lightning.communityserver.com/forums/thread/242.aspx

          Check out the posts by Jay Larock.

          Whether this will result in them actually developing for the Mac
          again though, is anybody's guess.

          ___________________________________________
          Randy B. Singer
          Co-author of The Macintosh Bible (4th, 5th, and 6th editions)

          Macintosh OS X Routine Maintenance
          http://www.macattorney.com/ts.html
          ___________________________________________
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