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Mac sales hit all-time record; 50% are first-time buyers

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  • John Rethorst
    Good news all the way around. Many of the first-time buyers are familiar with WP; many will look for an unbloated, competent, intuitive and elegant word
    Message 1 of 3 , Oct 23, 2007
      Good news all the way around. Many of the first-time buyers are
      familiar with WP; many will look for an unbloated, competent,
      intuitive and elegant word processing program, and will be happy
      to find that the best one on the Mac is also free.




      New York Times, October 23, 2007

      Record Mac Sales Help Apple Earnings Climb 67% in
      Quarter

      By John Markoff

      SAN FRANCISCO, Oct. 22 — Apple reported earnings on Monday
      that leapt ahead of analysts' already optimistic expectations on
      record sales of its Macintosh computers.

      The numbers showed that the company was slowly climbing
      back into the league of the dominant personal computer
      makers, Hewlett-Packard and Dell.

      Apple reported fourth-quarter profit of $904 million, or
      $1.01 a share, up from $542 million, or 62 cents, in the
      quarter a year ago, an increase of 67 percent. Analysts had
      predicted profit of 85 cents a share.

      Sales rose to $6.22 billion, from $4.84 billion. Gross
      margin also surged, to 33.6 percent, from 29.2 percent a
      year ago.

      Apple said it sold 2.16 million Macintosh computers
      worldwide in the quarter, an increase of 400,000 over the
      previous record. It does not break out domestic and foreign
      sales.

      The market research firm Dataquest estimated last week that
      Apple sold 1.3 million computers in the United States, and
      IDC put the figure at 1.1 million. In the same period, Dell
      sold 5 million computers and H.P. sold 4.3 million in the
      United States, according to the IDC report.

      Apple introduced a minor mystery during a conference call
      with analysts and reporters. In response to analysts'
      questions, Timothy Cook, Apple's chief operating officer,
      acknowledged that as many as 250,000 iPhones had been
      purchased but then not activated for service with AT&T,
      Apple's exclusive wireless partner in the United States.
      This is important because Apple receives payments based on
      each iPhone subscription with AT&T.

      Mr. Cook said he thought the phones had had their digital
      locks broken, presumably so they could be used with another
      carrier, but he said he was not certain what had become of
      them. There have been reports of people buying iPhones and
      unlocking them for resale overseas.

      Apple's stock skyrocketed in after-hours trading, rising
      almost 7 percent, to $186.35. The company is in the midst
      of one of the strongest stretches of its three-decade
      history, with recently revamped iPods selling briskly and a
      new version of its operating system scheduled to appear
      Friday.

      Moreover, the company said it expected its strong growth to
      continue into the holiday quarter.

      "We're looking forward to our best December quarter ever,"
      said Peter Oppenheimer, Apple's chief financial
      officer.

      Mr. Cook cited strong European growth but said Japan
      continued to be the company's "most challenging" market. He
      also noted that the company had grown faster than the
      overall personal computer market for 11 of the past 12
      quarters, and he pointed in particular to an extraordinary
      back-to-school market. Sales were so strong that Apple
      forecast relatively flat Macintosh sales for the holiday
      quarter.

      "It's becoming chronic," said Charles Wolf, a financial
      analyst who publishes Wolf Bytes, an industry newsletter.
      "The beauty is that their market share is so low that they
      have a huge upside potential."

      For the coming quarter, Mr. Oppenheimer forecast revenue of
      $9.2 billion and earnings of $1.42 a share. The revenue
      amount is about $700 million above what Wall Street
      analysts have been projecting.

      One of the company's strongest indications that it will see
      continued growth is its report that more than 50 percent of
      those who purchased Macintosh computers in its chain of 197
      stores during the quarter were first-time Mac buyers.

      Analysts also noted that although Apple has been criticized
      in the past for not competing on price, it is now taking
      advantage of its brand recognition.

      "They've been dinged for not playing in the sub-$1,000,
      sub-$500 price range," said Michael McGuire, a consumer
      electronics industry analyst at Gartner Inc., a market
      research firm. "Looking at their margins and income, I can
      see why they don't want to sell there."

      The company said that its sales partnership with Best Buy,
      which it is expanding to 270 from 230 stores, appeared to
      be successful. Apple said its retail channel inventory at
      the end of the quarter was below what it had expected.
      Although it has been on the market for just one
      quarter, the iPhone is set to be a major product for Apple.
      The company said last month that it had reached the
      one-million sold mark.

      Apple's stock shot up after a strong earnings report in
      July, but it then fell through the middle of August amid
      concerns that the iPhone might not maintain its early
      momentum.

      On Sept. 14, the company cut the price of the iPhone by
      $200 and offered early purchasers a $100 rebate, indicating
      that concerns about slowing sales had been justified. Since
      then Apple's stock has climbed steadily.

      Apple has said previously that it expects to sell 10
      million iPhones by the end of 2008. Some analysts say the
      company will easily surpass that figure. Mr. Wolf said he
      expected the company to sell 14 million phones in its first
      year and a half.
    • Daryl Chinn
      ... Hi, Do you mean that WP is on the Mac or for the Mac? I know it s free, but I think it would be very big news if Macs came pre-loaded with WP. Daryl
      Message 2 of 3 , Oct 23, 2007
        --- John Rethorst <jrethorst@...> wrote:

        > Many of the first-time buyers...
        > will be happy
        > to find that the best one on the Mac is also free.
        >

        Hi,

        Do you mean that WP is "on" the Mac or "for" the Mac?
        I know it's free, but I think it would be very big
        news if Macs came pre-loaded with WP.

        Daryl

        >
        >
        >
        > New York Times, October 23, 2007
        >
        > Record Mac Sales Help Apple Earnings Climb 67% in
        > Quarter
        >
      • John Rethorst
        ... for the Mac. John R.
        Message 3 of 3 , Oct 23, 2007
          --- In wordperfectmac@yahoogroups.com, Daryl Chinn <darylngee@...> wrote:

          > Do you mean that WP is "on" the Mac or "for" the Mac?
          > I know it's free, but I think it would be very big
          > news if Macs came pre-loaded with WP.

          for the Mac.

          John R.
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