Apple Reports US$818 Million Profit for Third Quarter

Posted by:
Date: Wednesday, July 25th, 2007, 16:03
Category: Finance

fruitlogo1.jpg
On Wednesday, Apple reported its third quarter financial results. The company stated a profit of US$818 million (or US$0.92 per diluted shared) on US$5.41 billion in revenue for the third quarter.
The results show a marked increase as opposed to a profit of US$472 million (or US$0.54 per diluted share) on US$4.37 billion for the third quarter of 2006.
Apple shipped more than 1.76 million Macs in the third quarter, demonstrating 33% growth compared with Q3 of 2006 as well as 9.8 million iPods, representing 21% growth from a year ago.
Specific iPhone sales numbers were kept under wraps, although Apple CEO Steve Jobs stated he hopes to sell the one-million iPod by the end of its first full quarter, ending September 29th.
Other highlights included the following:
-This quarter yielded the highest revenue in Apple history.
-Representatives cited continued strong demand for the iPod.
-Strong revenue and a favorable commodity market.
-Strong demand for the MacBook and MacBook Pro laptops.
Click the jump for the full story…


fruitlogo1.jpg
On Wednesday, Apple reported its third quarter financial results. The company stated a profit of US$818 million (or US$0.92 per diluted shared) on US$5.41 billion in revenue for the third quarter.
The results show a marked increase as opposed to a profit of US$472 million (or US$0.54 per diluted share) on US$4.37 billion for the third quarter of 2006.
Apple shipped more than 1.76 million Macs in the third quarter, demonstrating 33% growth compared with Q3 of 2006 as well as 9.8 million iPods, representing 21% growth from a year ago.
Specific iPhone sales numbers were kept under wraps, although Apple CEO Steve Jobs stated he hopes to sell the one-million iPod by the end of its first full quarter, ending September 29th.
Other highlights included the following:
-This quarter yielded the highest revenue in Apple history.
-Representatives cited continued strong demand for the iPod.
-Strong revenue and a favorable commodity market.
-Strong demand for the MacBook and MacBook Pro laptops.
-The company ended with three to four weeks of Mac channel inventory.
-The company ended with four to six weeks of iPod channel inventory.
-Apple currently holds a 71% share of MP3 player market share in the U.S.
-Apple 270,000 iPhones sold in the first 30 hours, more than 140,000 have been activated. AT&T apologized for problems with activation, but feels it has resolved this and reported a higher percentage of problem-free activations. The iPhone will be released to the European market in the next quarter.
-Apple is currently holding to the goal of selling 10 million iPhones by the end of the 2008 calendar year, including Asian markets.
-The Apple retail stores sold US$953 million in products for the quarter, averaging US$5.41 million per store. Over 50% of customers buying a Mac were new to the Mac, the stores drawing more than 9,000 customers per week.
-The outlook for the fourth quarter targets US$5.74 billion in revenue, higher commodity costs and earnings of about 55 cents per share.
-Regarding the Apple/Best Buy partnership, Apple was in 50 locations at the beginning of the quarter and 75 locations at the end of the quarter. The company expecting to be in over 200 Best Buy locations by the end of the calendar year.
-Apple will monitor cannibalization between iPod and iPhone sales, but cited that none of this seems to have happened so far.
-Mac sales up 24% on a per-store basis for Apple retail locations.
-Apple expects to open 12 stores next quarter, totaling 197 retail locations.
-Specific numbers for Apple TV units sold were not broken down into their own segment and qualify as an iTunes/music-based accessory according to responses offered in the question and answer period.
If you have any thoughts or feedback about this, let us know in the forums.

Recent Posts