Apple Posts $546 Million Profit

[plinden]

I've hesitated posting this for tha past 50 minutes since I keep expecting it to show up on the front page (Edit: Ok, it's there - mods, lock or merge this please) - but here goes. Read some articles here:
http://finance.yahoo.com/q?s=aapl

Q3'06 Actual Q4'05 Actual Q4'06 Actual
CPU Rev CPU Rev CPU Rev
Operating Segments Units K M$ Units K M$ Units K M$
Americas 642 $2,188 636 $1,771 781 $2,297
Europe 301 899 259 779 342 987
Japan 79 258 71 224 62 286
Retail 216 715 202 663 323 936
Other Segments (1) 89 310 68 241 102 331
Total Operating Segments 1,327 $4,370 1,236 $3,678 1,610 $4,837

Sequential Change Year/Year Change
CPU CPU
Operating Segments Units Rev. Units Rev.
Americas 22% 5% 23% 30%
Europe 14% 10% 32% 27%
Japan - 22% 11% - 13% 28%
Retail 50% 31% 60% 41%
Other Segments (1) 15% 7% 50% 37%
Total Operating Segments 21% 11% 30% 32%


Units Rev Units Rev Units Rev
K M$ K M$ K M$
Product Summary
Desktops (2) 529 $705 602 $787 624 $869
Portables (3) 798 1,161 634 824 986 1,344

Subtotal CPUs 1,327 1,866 1,236 1,611 1,610 2,213
iPod 8,111 1,497 6,451 1,212 8,729 1,559
Other Music Related
Products and Services (4) NM 457 NM 265 NM 452
Peripherals and Other
Hardware NM 236 NM 296 NM 297
Software, Service and Other
Sales NM 314 NM 294 NM 316
Total Apple $4,370 $3,678 $4,837



Sequential Change Year/Year Change
Units Rev. Units Rev.
Product Summary
Desktops (2) 18% 23% 4% 10%
Portables (3) 24% 16% 56% 63%
Subtotal CPUs 21% 19% 30% 37%
iPod 8% 4% 35% 29%
Other Music Related Products and
Services (4) NM - 1% NM 71%
Peripherals and Other Hardware NM 26% NM 0%
Software, Service and Other Sales NM 1% NM 7%
Total Apple 11% 32%

(1) Other Segments include Asia Pacific and FileMaker.
(2) Includes iMac, eMac, Mac mini, Mac Pro, PowerMac, and Xserve product
lines.
(3) Includes MacBook, iBook, MacBook Pro and PowerBook product lines.
(4) Consists of iTunes Music Store sales, iPod services, and Apple-branded
and third-party iPod accessories.

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Apple released (http://www.apple.com/pr/library/2006/oct/18results.html) preliminary fourth quarter 2006 financial results today. These results may be subject to significant adjustments.

Apple posted revenue of $4.84 billion with a net quarterly profit of $546 million, or $.62 per diluted share. These results compare to revenue of $3.68 billion and net profit of $430 million, or $.50 per diluted share, in the year-ago quarter. Gross margin was 29.2 percent, up from 28.1 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.

1,610,000 Macs and 8,729,000 iPods were shipped this quarter representing a 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.

“This strong quarter caps an extraordinary year for Apple. Selling more than 39 million iPods and 5.3 million Macs while performing an incredibly complex architecture transition is something we are all very proud of,” said Steve Jobs, Apple’s CEO. “Looking forward, 2007 is likely to be one of the most exciting new product years in Apple’s history.”

“We are pleased to have finished the year with over $10 billion in cash and to have increased annual revenue by $11 billion in the last two years,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2007, we expect revenue of $6.0 to $6.2 billion and earnings per diluted share of $.70 to $.73.”

[WildCowboy]

Nice bump in the stock...AAPL up 5.5% in after hours trading.

[Chimera]

Having looked at the numbers in more detail it is interesting that compared to the year ago quarter desktop sales are relatively static and pretty much all the growth in mac shipments is in the portable lines. Good to see Apple add 1bn to revenue anyhow.

[MacFan782040]

NICEEEE! I can't wait to see what they have in store for 2007 :D

[dr_lha]

Nice bump in the stock...AAPL up 5.5% in after hours trading.
Expect it to take a dump tomorrow morning.

[alexf]

1,610,000 Macs and 8,729,000 iPods were shipped this quarter representing a 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.

As always, the iPod is Apple's real cash cow.

Too bad for those of us who wish they would divert a little more of their attention to their computer line.

[eMac4ever]

Mac sales really have been increasing the past couple of quaters. Hopefully, those new Mac buyers continue buying Apple products. Also, It's a good thing I own some Apple stock. :D

[dr_lha]

Having looked at the numbers in more detail it is interesting that compared to the year ago quarter desktop sales are relatively static and pretty much all the growth in mac shipments is in the portable lines. Good to see Apple add 1bn to revenue anyhow.
I imagine this is an industry wide trend. More and more people are buying laptops, and in the MacBook, Apple have an extremely desirable modestly priced laptop. Even my mother in law has one! :)

[shadowkhas]

1,610,000 Macs and 8,729,000 iPods were shipped this quarter representing a 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.

Apple shipped 1,610,000 Macintosh® computers and 8,729,000 iPods during the quarter, representing 30 percent growth in Macs and 35 percent growth in iPods over the year-ago quarter.

Restated much?

Anyway, good news. :)

[MacQuest]

As always, the iPod is Apple's real cash cow.

Too bad for those of us who wish they would divert a little more of their attention to their computer line.

Yeah. Gawd knows Apple hasn't done a thing with it's Mac line-up this year.

:rolleyes:

[plinden]

As always, the iPod is Apple's real cash cow.
Pity you didn't read the figures before commenting:
Subtotal CPUs 1,327 1,866 1,236 1,611 1,610 2,213
iPod 8,111 1,497 6,451 1,212 8,729 1,559
Other Music Related
Products and Services (4) NM 457 NM 265 NM 452

In other words, iPod and music-related revenues are still less than half the total.

[oldwatery]

Nice results especially as the street was forcasting around 50cents.

“Looking forward, 2007 is likely to be one of the most exciting new product years in Apple’s history.”

Oh yeh! I can't wait.:D

[BRLawyer]

Restated much?

Anyway, good news. :)

I can only say one thing, after seeing another quarter of spectacular numbers by Apple...Dell's days are numbered. I would shut it down and give the money back to shareholders...:rolleyes:

[WildCowboy]

Having looked at the numbers in more detail it is interesting that compared to the year ago quarter desktop sales are relatively static and pretty much all the growth in mac shipments is in the portable lines. Good to see Apple add 1bn to revenue anyhow.

I'd imagine that it's partly due to the long-term industry-wide shift toward portables.

[hooch]

Man, I wish I had enough money for Apple stock!

[mdntcallr]

this is great news. good going apple!

but to be honest, where is the news on how badly apple will get hit by this options scandal. wish apple could put this behind them

[timmillwood]

Nice results especially as the street was forcasting around 50cents.

“Looking forward, 2007 is likely to be one of the most exciting new product years in Apple’s history.”

Oh yeh! I can't wait.:D

so what will we see in 2007?

- iTV
- 802.11n Airport
- iPhone &iPhone Pro

[Chimera]

so what will we see in 2007?

- iTV
- 802.11n Airport
- iPhone &iPhone Pro

To be honest Steve seems to say that every year, the problem is after he says it the first year if he doesn't say it about the next year shareholders will be more worried about their investment so it becomes a repetition.

[WildCowboy]

In other words, iPod and music-related revenues are still less than half the total.

Which reverses the trend from last quarter when iPods and their accessories outsold Mac by about $100 million. CPU revenue was up 19% sequentially, while iPod and iPod accessory revenue was only up 3%.

[alexf]

Yeah. Gawd knows Apple hasn't done a thing with it's Mac line-up this year.

:rolleyes:

Wow, amazing how emotional people always get whenever I make a statement that could sound slightly anti-iPod... I know you love your iPod and all (I am very fond of mine myself), but over the last few years Apple has been focusing a dispropotional amount of energy into their cute little gadget which has massively boosted their profits. For those of us that don't salivate over all things iPod, I think this is too bad.

That is all.

[jholzner]

NICEEEE! I can't wait to see what they have in store for 2007 :D

I wonder if he means calander year 07 or FY 07. If it's FY 07 we could see some of those products in the next three months :)

[scu]

Apple once again confirmed that more and more people are moving in the Mac camp. The stock is still cheap. In the next 6 months we will see more switchers as new products come out.

[alexf]

Pity you didn't read the figures before commenting:
Subtotal CPUs 1,327 1,866 1,236 1,611 1,610 2,213
iPod 8,111 1,497 6,451 1,212 8,729 1,559
Other Music Related
Products and Services (4) NM 457 NM 265 NM 452

In other words, iPod and music-related revenues are still less than half the total.

Where are these figures?

[WildCowboy]

Where are these figures?

Check the links at the top of the press release (http://www.apple.com/pr/library/2006/oct/18results.html).

[jholzner]

"Q on Mac Pro demand. A: Very positive reaction to Mac Pro. Still feel there is a delay in purchasing related to Creative Suite (Universal)"

They said the same thing about pro desktop sales when we were waiting on a carbon version from Adobe. Then, it was released and Pro sales didn't increase. Too bad you can't put Xeon in a MBP :P

[Chimera]

Where are these figures?

The first, third, and fifth are units while the second, forth and sixth are revenue.

The first two are the last quarter, second two the year ago quarter, and third two are this quarter.

[alexf]

Check the links at the top of the press release (http://www.apple.com/pr/library/2006/oct/18results.html).

Still not sure about this "less than half the total" figure... :confused:

[WildCowboy]

Still not sure where you're getting this "less than half the total" figure... :confused:

This quarter, Macs accounted for $2.213 billion in revenue. iPods accounted for $1.559 billion, plus another $452 million in music-related revenue, for a total of $2.011 billion. So, even without counting Mac peripherals and software, music revenue was less than Mac revenue.

Last quarter, Mac revenue was $1.866 billion, while iPods sold $1.497 billion, plus another $457 million in other music-related revenue, for a total of $1.954 billion for the music end.

[twoodcc]

way to go Apple! apple keeps looking better and better each year. i'm glad i'm here

[alexf]

This quarter, Macs accounted for $2.213 billion in revenue. iPods accounted for $1.559 billion, plus another $452 million in music-related revenue, for a total of $2.011 billion. So, even without counting Mac peripherals and software, music revenue was less than Mac revenue.

Last quarter, Mac revenue was $1.866 billion, while iPods sold $1.497 billion, plus another $457 million in other music-related revenue, for a total of $1.954 billion for the music end.

Got it, thanks. Makes sense now that I read the PDF on Apple's site.

[NewSc2]

"Q on Mac Pro demand. A: Very positive reaction to Mac Pro. Still feel there is a delay in purchasing related to Creative Suite (Universal)"

They said the same thing about pro desktop sales when we were waiting on a carbon version from Adobe. Then, it was released and Pro sales didn't increase. Too bad you can't put Xeon in a MBP :P

Too bad they can't put a Merom in a MBP.



(kidding! kidding...)

[rtdunham]

To be honest Steve seems to say that every year, the problem is after he says it the first year if he doesn't say it about the next year shareholders will be more worried about their investment so it becomes a repetition.

I'm thinking the same thing. Can anyone find the appropriate quote from, say, last year's MWSF? I know i've been waiting since then for the exciting new products he promised: intel conversions don't count, nor do new casings and better batteries for iPods. The MacBook counts as a new product and the sales achieved by it could put it into the exciting category. iTV may fit but it's not coming out til next year. So what did Steve promise for 06? And what fits that bill?

[n00bst3r]

Maybe if they weren't making a grand on each MBP..

[lmalave]

Wow, amazing how emotional people always get whenever I make a statement that could sound slightly anti-iPod... I know you love your iPod and all (I am very fond of mine myself), but over the last few years Apple has been focusing a dispropotional amount of energy into their cute little gadget which has massively boosted their profits. For those of us that don't salivate over all things iPod, I think this is too bad.

That is all.

I don't even *own* an iPod, but I still think you're off base and aren't seeing the big picture. Thank goodness the people that run Apple don't think like you. Apple is focusing on these gadgets (iPod, Airport/AirTunes, iTV, iPhone) that aren't even Mac-centric, because they are *immensely* adding to Apple's reputation for innovation, style, and ease-of-use. These are attributes that translate directly to marketing the Mac. The iPod halo effect has been slow in coming but it *is* real. And it's soon to be followed by the iTV and iPhone halo effect. I think Apple will continue to make gains in the home market with their MacBooks. And maybe the iTV will help the Mac Mini take off as a media center computer. iMacs and Mac/Book Pros are always going to be a tougher sell because of their higher cost. But it's Apple's success in the broader consumer market that is allowing it to also stay in the niche high-end computer market...

[dr_lha]

Wow, amazing how emotional people always get whenever I make a statement that could sound slightly anti-iPod... I know you love your iPod and all (I am very fond of mine myself), but over the last few years Apple has been focusing a dispropotional amount of energy into their cute little gadget which has massively boosted their profits. For those of us that don't salivate over all things iPod, I think this is too bad.

That is all.
Apple revamped their entire line of computers this year, a massive change over to a new CPU architecture and sales have increased accordingly. What more do you want from them exactly?

Personally I think your vision is very skewed. The iPod line up has languished this year in comparison to the computer line up.

[mazola]

I'm thinking the same thing ... So what did Steve promise for 06? And what fits that bill?

2006 was a very good year (http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore.woa/6474003/wo/Sk3OE9fyakUZ2FK2BCb15VLTifN/4.0.21.1.0.8.25.7.11.0.3)

[Unorthodox]

Pssh.
That nothing.
I made 600 million profit selling lemonade on my street just last week.

[ender78]

I'm thinking the same thing. Can anyone find the appropriate quote from, say, last year's MWSF? I know i've been waiting since then for the exciting new products he promised: intel conversions don't count, nor do new casings and better batteries for iPods. The MacBook counts as a new product and the sales achieved by it could put it into the exciting category. iTV may fit but it's not coming out til next year. So what did Steve promise for 06? And what fits that bill?


We'll lets see, we're looking at significant performance upgrades for the same $$$ as well as a successful transition [lets give Apple credit where credit it due]. Apple may have added about a million new Mac users this quarter [that is a significant number]. I have friends who would NEVER has considered Macs in the past coming to me for advice on their next purchase.

The iTV, and especially the iPhone could be breakout products. I am anxiously anticipating both.

[alexf]

Apple revamped their entire line of computers this year, a massive change over to a new CPU architecture and sales have increased accordingly. What more do you want from them exactly?

Well, first of all, when I say iPod, I am including all things music/movies, iTV, etc. To put it very simply, I wish Apple would use more of the innovative spirit that is going into their "entertainment" branch and put it back into their computers.

[Chef Medeski]

Pssh.
That nothing.
I made 600 million profit selling lemonade on my street just last week.
Thats a whole lot of lemons and suger.... unless u used too much water!!!!!:eek:

YOU CANT DILUTE LEMONADE YOU BAS****. WHERES YOUR INNOVATION STOP FOCUSING ON THAT CUTE CUDDLY MUSIC PLAYER AND GET CRANKING WITH THE REAL LEMONADE..... BITTER LIKE I LIKE IT..

:rolleyes:

[jonessodarally]

2006 was a very good year (http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore.woa/6474003/wo/Sk3OE9fyakUZ2FK2BCb15VLTifN/4.0.21.1.0.8.25.7.11.0.3)

^^haha..:D

as for 2007...

iTV
iPhone
True Video iPod (touchscreen+wifi?)
OS X Leopard (everyone seems to forget that)
Updated processors across the board


Anyone heard anything on the "multi-touch" front lately?

[gwangung]

Well, first of all, when I say iPod, I am including all things music/movies, iTV, etc. To put it very simply, I wish Apple would use more of the innovative spirit that is going into their "entertainment" branch and put it back into their computers.

The computers that are just finishing a CPU conversion, but are still rated as being good buys by non-Mac publications?

Perspective, my young padawan, perspective....

[Dont Hurt Me]

Its clear Apple is missing something in the midrange desk top line. Its time for the Cube or Macintosh or headless iMac or Max Mini or something. iMac isnt for everyone and the world has billions of big beautiful displays just waiting for a midrange Mac but if Apple prices it again the same as the towers it will be another failure. Its way past time for the next Macintosh. Needs a real GPU, at least 1 expansion slot and should be priced right along with ugly iMac:D or a pinch below.

[Chef Medeski]

The computers that are just finishing a CPU conversion, but are still rated as being good buys by non-Mac publications?

Perspective, my young padawan, perspective....
I hear a bit of what he is saying though. I mean there wasn't much innovation, just.... it was more like building the perfect car, say something like a Subaru WRX ( my car that I love very much) but replaced with a nicer engine from Porsche.... some better tires off a Lancer.... a nice tranny off of Porsche again.... neverthless... this is what they did with the Mac. Took some great stuff out there like Glossy Screen, Webcams, and Intel chips and put em in our loving Mac. However, the only piece of innocation was the Maglev charger. There was no new standards... no new gear. Yet, I do believe you are asking for too much if they are expected to innovate every product revision. Its becoming a very big company.... its no longer a couple thousand products where you can mess-up on some new innovation...

But I'm not worried... there hasn't been much innovation elsewhere either so its not like Apple is behind... they are in front. Just not WAY in front. We'll see what happens with Leopard/802.11N/Santa Rosa/HD DVDs/Hybrid HDs..... innovation is in the pipeline. Don't worry.

2007 is going to be a very good year.

And 2008 even better. Presidential Election! ;)

[dr_lha]

Its clear Apple is missing something in the midrange desk top line. Its time for the Cube or Macintosh or headless iMac or Max Mini or something. iMac isnt for everyone and the world has billions of big beautiful displays just waiting for a midrange Mac but if Apple prices it again the same as the towers it will be another failure. Its way past time for the next Macintosh. Needs a real GPU, at least 1 expansion slot and should be priced right along with ugly iMac:D or a pinch below.

Must every thread have this post in it?

[Some_Big_Spoon]

ok, now that the quarter's over, maybe we can get some hardware releases. Me thinks they were waiting to get the full effect for the holiday quarter, but then again, what do I know.

[oldwatery]

so what will we see in 2007?

- iTV
- 802.11n Airport
- iPhone &iPhone Pro

Yeh...plus
- Leopard
- True video iPod
- Hate to say it on this forum but......C2D Laptops ;)

Like the man said "one of the most exciting new product years in Apple’s history.”

I'll have one of each please :D

[minnesotamacman]

Expect it to take a dump tomorrow morning.


Why do you think that?

[APPLENEWBIE]

Interesting that the mac program at Best Buy is being expanded from seven to 50 stores, and a new pilot program at a few Circuit City stores. Must be seeing some success for Best Buy to be alotting floor space in more of their stores. :D

[Chef Medeski]

Yeh...plus
- Leopard
- True video iPod
- Hate to say it on this forum but......C2D Laptops ;)

Like the man said "one of the most exciting new product years in Apple’s history.”

I'll have one of each please :D
I rather have a sandwich of all those things.

Laptop as the bread.
Leopard is the mayo.
Got some real meat with C2D in there
and 802.11N is some good cheese even though itll still have some holes in it like swiss
All with wireless iTV

and a true video ipod on top.

[Dont Hurt Me]

Must every thread have this post in it?Guess Im still pissed at Apple for discontinuing the Cube a few weeks before I could afford one!:mad:

[alexf]

I hear a bit of what he is saying though. I mean there wasn't much innovation, just.... it was more like building the perfect car, say something like a Subaru WRX ( my car that I love very much) but replaced with a nicer engine from Porsche.... some better tires off a Lancer.... a nice tranny off of Porsche again.... neverthless... this is what they did with the Mac. Took some great stuff out there like Glossy Screen, Webcams, and Intel chips and put em in our loving Mac. However, the only piece of innocation was the Maglev charger. There was no new standards... no new gear. Yet, I do believe you are asking for too much if they are expected to innovate every product revision. Its becoming a very big company.... its no longer a couple thousand products where you can mess-up on some new innovation...

But I'm not worried... there hasn't been much innovation elsewhere either so its not like Apple is behind... they are in front. Just not WAY in front. We'll see what happens with Leopard/802.11N/Santa Rosa/HD DVDs/Hybrid HDs..... innovation is in the pipeline. Don't worry.

2007 is going to be a very good year.

And 2008 even better. Presidential Election! ;)

Yes, thank you. At least someone else out there is emotionally distanced enough from the iPod and the Apple entertainment sector to be a bit objective.

Innovation: just what happened to Apple's innovative spirit when it comes to computers? The latest Mac Pro was fitted into the existing (and way oversized) G5 case. The MacBook was disappointing in that - proportionally - Apple did not shrink it at all or make it lighter than its predecessor (a design which had been in existence for about four years). There are more things, but I really don't want to sound like a troll here...

Apple needs to come out with new computer models that are unlike anything else out there. What about a tiny, thin ultraportable? What about a smaller tower, so those of us that want a pro computer don't have to invest in an oversized monster (which is larger than any PCs in the market that I am aware of). Aren't computers supposed to get SMALLER as the technology advances? Why is Apple obsessed with making the iPod smaller and smaller, but does not care as much about its laptops and desktops?

The answer: profit, or course. The iPod is Apple's cash cow. And this, my friends, is what I mean when I say that Apple needs to be partitioning off a little of its innovative energy that it is putting into its entertainment sector and bring it back to the computer line.

Understood now?

OK, now fire away :)

[macusersoon]

Wow, 1.61 million Macs, what a quarter. Way to go Apple.

Back on October 10, Switch To A Mac predicted that Apple would sell 1.64 million Macs during the quarter. That was a very close prediction.

Analysts were expecting only 1.47 million Macs.

Here's the Switch To A Mac predicion (http://switchtoamac.com/site/preview-apples-q4-2006-financial-earnings-mac-sales-increase.html)

[iMikeT]

I wish I had the money to invest a couple of months ago when Apple's stock was ~$50.:(

[Kingsly]

This is what interests me: “Looking forward, 2007 is likely to be one of the most exciting new product years in Apple’s history.”

[KeareB]

"Q on Mac Pro demand. A: Very positive reaction to Mac Pro. Still feel there is a delay in purchasing related to Creative Suite (Universal)"

They said the same thing about pro desktop sales when we were waiting on a carbon version from Adobe. Then, it was released and Pro sales didn't increase. Too bad you can't put Xeon in a MBP :P

I think this is different. Our company is not buying any Intel-based macs until Adobe releases Universal CS, and I don't know why anyone would spend $$ on new hardwre now only to take a performance hit, vs. a performance increase and better hardware bang for the buck by waiting 6-9 months.

[sushi]

This is what interests me:

“Looking forward, 2007 is likely to be one of the most exciting new product years in Apple’s history.”
Yep. Good things happening at Apple!

Looks like we can expect to see some nice innovations in 2007.

[IJ Reilly]

I think this is different. Our company is not buying any Intel-based macs until Adobe releases Universal CS, and I don't know why anyone would spend $$ on new hardwre now only to take a performance hit, vs. a performance increase and better hardware bang for the buck by waiting 6-9 months.

Because not everyone uses Adobe CS, and because you're always going to get better bang for your buck by waiting?

[simX]

Yes, thank you. At least someone else out there is emotionally distanced enough from the iPod and the Apple entertainment sector to be a bit objective.

Innovation: just what happened to Apple's innovative spirit when it comes to computers? The latest Mac Pro was fitted into the existing (and way oversized) G5 case. The MacBook was disappointing in that - proportionally - Apple did not shrink it at all or make it lighter than its predecessor (a design which had been in existence for about four years). There are more things, but I really don't want to sound like a troll here...

Apple needs to come out with new computer models that are unlike anything else out there. What about a tiny, thin ultraportable? What about a smaller tower, so those of us that want a pro computer don't have to invest in an oversized monster (which is larger than any PCs in the market that I am aware of). Aren't computers supposed to get SMALLER as the technology advances? Why is Apple obsessed with making the iPod smaller and smaller, but does not care as much about its laptops and desktops?

The answer: profit, or course. The iPod is Apple's cash cow. And this, my friends, is what I mean when I say that Apple needs to be partitioning off a little of its innovative energy that it is putting into its entertainment sector and bring it back to the computer line.

Understood now?

OK, now fire away :)

*sigh* How many times do we have to refute your assertions with facts before you stop repeating them?

To wit, the iPod is not Apple's "cash cow". By definition, if there is something that gains more revenue/profit than the iPod, then the iPod cannot be the cash cow. 58% of Apple's revenue still came from sales of Macs. Gross margins for both Macs and iPods has always been similar (hovering a bit below 30%), so the Mac also generates the majority of the profit for Apple.

As for Apple's innovative spirit lacking when it comes to the Macs, let's just point out that it Apple updated the iPod in October 2005 to the 5th generation, and we JUST got the 5.5th generation last month. Apple took a year to add slightly brighter screens, better battery life (only for video), and games. The nano just gained the anodized aluminum exterior -- wow, Apple's reaching back to the past for it's innovation now! And the shuffle got slimmed down and consolidated into one product. All this doesn't sound exactly like innovation to me. (Of course, Apple doesn't really need to innovate, since they're already selling iPods by the boatload.)

In contrast, Apple brought all of its Macs over to the Intel processor. The Mac Pro was dramatically higher value, what with double-wide graphics card slot, dual optical drives, 4 internal hard drive bays, etc., etc. All Macs (except for the Mac Pro) now have Front Row and a remote, which is a great feature. Built-in iSights have also migrated across the entire product line. The MacBook and MacBook Pro now have MagSafe -- a great innovation. Boot Camp is now supported on all new Macs. The Xserve has new features like lights-out management, redundant power supplies, etc. And we've seen some great things coming for Leopard, what with Time Machine and Spaces and iChat Theater and Core Animation and iCal Server, etc., etc., etc.

It seems to me that Apple is innovating more on the Macintosh side of things than they are with the iPod. What are they going to add next on the iPod -- wireless? *gasp*, so innovative!

Seriously, can we stop with this myth already? It's the same thing with all of Apple's "woes" with quality control (which was busted by the recent consumer reports articles where Apple has actually brought DOWN the number of new computers needing repair in their first year). It's something that's repeated ad nauseum by a few vocal people, when it's really not a problem at all. Same here: everybody gawks and writes about the iPod precisely because more people can afford it and more people can use it with whatever computer they have. So, obviously, you will hear more about the iPod.

Let's see if repeating myself again has any effect: the iPod is not Apple's cash cow!

Understood now?

OK, now fire away :rolleyes:

[MacQuest]

so what will we see in 2007?

- iTV
- 802.11n Airport
- iPhone &iPhone Pro

I'm leaning towards MacPhone for the Blackberry/Treo/PocketPC killer with an embedded/lite version of Mac OS X.

Remember, any Apple product using Mac OS has to have "Mac" in it's name from now on per SJ.

So consumer iPhone and MacPhone, or, MacPhone and MacPhone Pro, if the consumer phone has an even more slimmed down version of Mac OS X on it.

[oingoboingo]

Guess Im still pissed at Apple for discontinuing the Cube a few weeks before I could afford one!:mad:

Step 1: Buy Mac mini.
Step 2: Repeat mantra "Mac mini is the new Cube, and I don't care about the integrated graphics" 5000 times.
Step 3: Enjoy!

[mojohanna]

Having looked at the numbers in more detail it is interesting that compared to the year ago quarter desktop sales are relatively static and pretty much all the growth in mac shipments is in the portable lines. Good to see Apple add 1bn to revenue anyhow.
Due to late intro of the mac Pro. I would bet that desktops will increase in sales for Q1

[MacQuest]

As always, the iPod is Apple's real cash cow.

Too bad for those of us who wish they would divert a little more of their attention to their computer line..


Yeah. Gawd knows Apple hasn't done a thing with it's Mac line-up this year. :rolleyes:

Wow, amazing how emotional people always get whenever I make a statement that could sound slightly anti-iPod... I know you love your iPod and all (I am very fond of mine myself), but over the last few years Apple has been focusing a dispropotional amount of energy into their cute little gadget which has massively boosted their profits. For those of us that don't salivate over all things iPod, I think this is too bad.

That is all.

Do you even understand yourself?

You're first comment was more anti-Mac than anti-iPod.

Count the amount of things Apple has done to it's Mac line-up this year compared to it's iPod line-up, and then come back and tell us that Apple hasn't focused on it's computers this year WAY more than the iPod line-up.

Think before you post.

Es todo.

[mojohanna]

Yes, thank you. At least someone else out there is emotionally distanced enough from the iPod and the Apple entertainment sector to be a bit objective.

Innovation: just what happened to Apple's innovative spirit when it comes to computers? The latest Mac Pro was fitted into the existing (and way oversized) G5 case. The MacBook was disappointing in that - proportionally - Apple did not shrink it at all or make it lighter than its predecessor (a design which had been in existence for about four years). There are more things, but I really don't want to sound like a troll here...

Apple needs to come out with new computer models that are unlike anything else out there. What about a tiny, thin ultraportable? What about a smaller tower, so those of us that want a pro computer don't have to invest in an oversized monster (which is larger than any PCs in the market that I am aware of). Aren't computers supposed to get SMALLER as the technology advances? Why is Apple obsessed with making the iPod smaller and smaller, but does not care as much about its laptops and desktops?

The answer: profit, or course. The iPod is Apple's cash cow. And this, my friends, is what I mean when I say that Apple needs to be partitioning off a little of its innovative energy that it is putting into its entertainment sector and bring it back to the computer line.

Understood now?

OK, now fire away :)
Maybe it is because most of the resources and dollars were going into the new intel archetecture. Not enough time and too drastic of a change to entirely redo the form factor as well. Jesus what else did you want? Rebuilding of the great wall? An overhaul of the IRS taxcode? One step at a time my friend, one step at a time.

[MacQuest]

Where are these figures?

Aaaand in 3 ... 2 ... 1:

REALITY CHECK.

This is why I posted my comment correcting your innaccurate assumption that "the iPod is still Apple's cash cow".

The funny part is that I was in no way "defending" the iPod, since I don't have one at the moment and was just as annoyed at Apple as everyone else that Macs were not centerstage... in '04 and '05.

We're rounding out '06 and that argument hasn't held water since last year.

It's been ALL about Mac in '06

[scu]

Due to late intro of the mac Pro. I would bet that desktops will increase in sales for Q1

I would agree with you. One issue is that the older G5 are still very good machines. There is little incentive to upgrage given that there are still a number of applications that are not Intel native yet. The Mac Pro should see a bigger jump when Photoshop and Leopard are out in Spring.

I think Leopard alone will blow everyone away given the powerfull 64 bit processing. We will continue to see strong demand for Mac desktops at that point.

[MacQuest]

I wish Apple would use more of the innovative spirit that is going into their "entertainment" branch and put it back into their computers.

Knock, Knock.

Who's there?

Leopard.

[MacQuest]

...Anyone heard anything on the "multi-touch" front lately?

I think the mouse may be killed in '07 by multi-touch innovations.

[Chef Medeski]

I think the mouse may be killed in '07 by multi-touch innovations.
talk about innovation

[alexf]

Aaaand in 3 ... 2 ... 1:

REALITY CHECK.

This is why I posted my comment correcting your innaccurate assumption that "the iPod is still Apple's cash cow".

The funny part is that I was in no way "defending" the iPod, since I don't have one at the moment and was just as annoyed at Apple as everyone else that Macs were not centerstage... in '04 and '05.

We're rounding out '06 and that argument hasn't held water since last year.

It's been ALL about Mac in '06

He he... I told you this would get emotional! :)

And by the way, you may want to look up "cash cow" in the dictionary. It has nothing to do with a product representing the MAJORITY of a company's income.

[Rocketman]

It is interesting to read the long list of disclosed risks in the financial statement news release on the Apple website.

Rocketman

[alexf]

To wit, the iPod is not Apple's "cash cow". By definition, if there is something that gains more revenue/profit than the iPod, then the iPod cannot be the cash cow. 58% of Apple's revenue still came from sales of Macs. Gross margins for both Macs and iPods has always been similar (hovering a bit below 30%), so the Mac also generates the majority of the profit for Apple.

Why, my friend, do you think that a "cash cow" has to be the thing that gains the most revenue/profit? Not sure what dictionary you're using; please let me know.

[Dont Hurt Me]

Step 1: Buy Mac mini.
Step 2: Repeat mantra "Mac mini is the new Cube, and I don't care about the integrated graphics" 5000 times.
Step 3: Enjoy!
Allready have a Mini but Im going to stick with this chant ,Apple will build a consumer tower, Apple will Build a Consumer Tower,APPLE WILL BUILD A CONSUMER TOWER!:)

[extraextra]

so what will we see in 2007?

- iTV
- 802.11n Airport
- iPhone &iPhone Pro

Why not just one iPhone?

Since people have brought up C2D and headless Mac's, I'll throw in, "smaller MBP !"

New exciting products...

[WildCowboy]

Why, my friend, do you think that a "cash cow" has to be the thing that gains the most revenue/profit? Not sure what dictionary you're using; please let me know.

The MP3 player market is still growing too fast and is too competitive for the iPod to fall into the "cash cow" category. It's margins are on par with those for Macs, meaning that it requires substantial expenditures to maintain its position on the cutting edge. Definitely not a cash cow...it's still a star.

[rdowns]

Historical Mac shipments by quarter.

1Q2000 - 1,377,000
2Q2000 - 1,043,000
3Q2000 - 1,016,000
4Q2000 - 1,122,000

1Q2001 - 659,000
2Q2001 - 751,000
3Q2001 - 827,000
4Q2001 - 850,000

1Q2002 - 659,000
2Q2002 - 813,000
3Q2002 - 808,000
4Q2002 - 734,000

1Q2003 - 743,000
2Q2003 - 711,000
3Q2003 - 771,000
4Q2003 - 787,000

1Q2004 - 743,000
2Q2004 - 749,000
3Q2004 - 771,000
4Q2004 - 787,000

1Q2005 - 1,046,000
2Q2005 - 1,070,000
3Q2005 - 1,182,000
4Q2005 - 1,236,000

1Q2006- 1,254,000
2Q2006- 1,112,000
3Q2006- 1,327,000
4Q2006 - 1,610,000

[quigleybc]

This just in:

I posted a profit of $70.00 by quitting smoking.

:D

[WildCowboy]

Historical Mac shipments by quarter.

<snip>

Thanks for the chart...I always like to see stuff like this. But your 3Q and 4Q numbers for 2003 and 2004 looked a bit fishy, so I looked into it and made the corrections below for 2004. Don't know if there are any other errors.

1Q2000 - 1,377,000
2Q2000 - 1,043,000
3Q2000 - 1,016,000
4Q2000 - 1,122,000

1Q2001 - 659,000
2Q2001 - 751,000
3Q2001 - 827,000
4Q2001 - 850,000

1Q2002 - 659,000
2Q2002 - 813,000
3Q2002 - 808,000
4Q2002 - 734,000

1Q2003 - 743,000
2Q2003 - 711,000
3Q2003 - 771,000
4Q2003 - 787,000

1Q2004 - 743,000
2Q2004 - 749,000
3Q2004 - 876,000
4Q2004 - 836,000

1Q2005 - 1,046,000
2Q2005 - 1,070,000
3Q2005 - 1,182,000
4Q2005 - 1,236,000

1Q2006- 1,254,000
2Q2006- 1,112,000
3Q2006- 1,327,000
4Q2006 - 1,610,000

[simX]

Why, my friend, do you think that a "cash cow" has to be the thing that gains the most revenue/profit? Not sure what dictionary you're using; please let me know.

Why, my friend, by "the iPod is Apple's cash cow", you imply that there is only one cash cow. But if you want to use the traditional definition (http://www.dict.org/bin/Dict?Form=Dict2&Database=*&Query=cash+cow) of "cash cow", "a project that generates a continuous flow of money," then the Mac would be more of a cash cow than the iPod, because it has always represented a larger proportion of Apple's profits and revenues. Not once has the iPod represented more of Apple's revenues. So the Mac generates a larger continuous flow of money.

Not sure what set of rules of logic you are using, but either way you are wrong. The Mac is still more important to Apple's bottom line than the iPod. Apple is also innovating more on the Mac than with the iPod.

By the way, you might want to look up the definition of the word "emotional" as well. I'm using facts, you're making things up.

[SMM]

It is interesting to read the long list of disclosed risks in the financial statement news release on the Apple website.

Rocketman

Haven't you read these before? They are a SOP for any 'forward looking' statement.

[Dont Hurt Me]

Those numbers are sweet but I would like to see a breakdown of each model. Also the market worldwide if im not mistaken is growing at what 10% a year yet Apples desk tops grew at 4%? If so why?

[dr_lha]

Those numbers are sweet but I would like to see a breakdown of each model. Also the market worldwide if im not mistaken is growing at what 10% a year yet Apples desk tops grew at 4%? If so why?
Is the 10% growth in the desktop market? I thought 10% was for the PC market as a whole. In which case Apple's overall growth is above that.

[Dont Hurt Me]

I think it is as a whole, I just find it interesting that that desk tops are declining, Is this world wide or just for Apple and if it is just for Apple then they are doing something wrong in this part of their business.

[theBB]

Innovation: just what happened to Apple's innovative spirit when it comes to computers? The latest Mac Pro was fitted into the existing (and way oversized) G5 case. The MacBook was disappointing in that - proportionally - Apple did not shrink it at all or make it lighter than its predecessor (a design which had been in existence for about four years). There are more things, but I really don't want to sound like a troll here...

Apple needs to come out with new computer models that are unlike anything else out there. What about a tiny, thin ultraportable? What about a smaller tower,
An ultra portable or headless tower is innovation? The world is full of them. On the other hand, Front Row, Boot Camp, built-in iSight, Mag-safe connector, mighty mouse, much more bang for the buck iMacs, laptops and MacPro's do not count. As I remember, this time last year almost everybody was complaining about "obsolete" G4's in laptops and the limited number of hard drive and optical drive slots on the PowerMacs. I guess solving those problems does not count.

iPods is the cash cow and what did Apple do about it? Well, colorful nanos are cool, but I prefer a white one anyways. I'd think iPod camp would have a lot more to complain about. Geez...

[OhEsTen]

And 2008 even better. Presidential Election! ;)

Oh god. Dick Cheney's america scares me (almost as much as Bush's)...... another thing to worry about.

[bbarnhart]

An example of a "cash cow"

Microsoft Windows XP
Microsoft Office

Nearly everything else MS does is at a loss or does not generate a lot of cash.

[KREX725]

An example of a "cash cow"

Microsoft Windows XP
Microsoft Office

Nearly everything else MS does is at a loss or does not generate a lot of cash.

What about all of those profits from the XBox 360????? Don't those things just consist of about $8.00 worth of plastic????? :p

[SMM]

Apple has had a phenomenal run. They are doing this on all fronts. They have 2 Billion CASH! That is a big deal. It keeps the R&D funded. Soon they will be launching their new iWork suite and FCE. Both will provide another big boost in sales of HW.

Last January, the majority opinion suggested Apple Mac sales would at best be flat for a year while they transitioned to Intel. Yet, they have continued to increase across the board, in almost all product lines. This has been one h**l of an accomplishment.

Apple has it all going. I expect them to really make a significant statement over the next 6 months. I know they have really been keeping a closed door (and taking a lot of heat) recently. But, timing is everything. Things are going to explode. You shall bear witness.

You MS and Dell folk, who are posting on here, think of your future. Dump those pitiful stocks, which are going nowhere, and buy APPL.

[WildCowboy]

Apple has had a phenomenal run. They are doing this on all fronts. They have 2 Billion CASH! That is a big deal. It keeps the R&D funded.

Actually they have over $6 billion in cash and another almost $4 billion in liquid, short term investments...so they really have $10 billion in cash, up from just over $8 billion a year ago.

[alexf]

Why, my friend, by "the iPod is Apple's cash cow", you imply that there is only one cash cow. But if you want to use the traditional definition (http://www.dict.org/bin/Dict?Form=Dict2&Database=*&Query=cash+cow) of "cash cow", "a project that generates a continuous flow of money," then the Mac would be more of a cash cow than the iPod, because it has always represented a larger proportion of Apple's profits and revenues. Not once has the iPod represented more of Apple's revenues. So the Mac generates a larger continuous flow of money.

Not sure what set of rules of logic you are using, but either way you are wrong. The Mac is still more important to Apple's bottom line than the iPod. Apple is also innovating more on the Mac than with the iPod.

By the way, you might want to look up the definition of the word "emotional" as well. I'm using facts, you're making things up.

Listen, it's quite simple: For over 25 years Apple was a maker of almost exclusively personal computers and software. Five years ago, they introduced the iPod, followed by the music store (and now video, etc.). All of a sudden - within a period of only five years - iPod and music/video related sales account for almost half of their profit, and soon - by many estimates - will account for at least a full half (and possibly more).

Now, do you think that Apple considers the iPod and the iTunes Music Store a cash cow? Hmmm... :rolleyes:

[oingoboingo]

Allready have a Mini but Im going to stick with this chant ,Apple will build a consumer tower, Apple will Build a Consumer Tower,APPLE WILL BUILD A CONSUMER TOWER!:)

Heh heh...yeah me too. Maybe that's what The Steve (tm) was referring to when he said that '07 was going to be one of the most exciting years for Apple yet.

Or it could just be a new colour range for the iPod nanos.

[Timothy]

AlexF...you seem to just be digging yourself into a deeper hole. You should just drop it, because your point is pointless. The iPod is the single greatest thing to happen to the "mac" in the history of Apple. And I've been here for the entirety of that history.

Anyone who thinks that the iPod is detracting from the value of macs is clueless.

[auxplage]

Listen, it's quite simple: For over 25 years Apple was a maker of almost exclusively personal computers and software. Five years ago, they introduced the iPod, followed by the music store (and now video, etc.). All of a sudden - within a period of only five years - iPod and music/video related sales account for almost half of their profit, and soon - by many estimates - will account for at least a full half (and possibly more).

Now, do you think that Apple considers the iPod and the iTunes Music Store a cash cow? Hmmm... :rolleyes:

Whether or not Apple considers them a cash cow is irrelevant because you are the one that proposed the idea.

[crainial]

Its clear Apple is missing something in the midrange desk top line. Its time for the Cube or Macintosh or headless iMac or Max Mini or something. iMac isnt for everyone and the world has billions of big beautiful displays just waiting for a midrange Mac but if Apple prices it again the same as the towers it will be another failure. Its way past time for the next Macintosh. Needs a real GPU, at least 1 expansion slot and should be priced right along with ugly iMac:D or a pinch below.

I couldn't agree more. A Conroe machine would fit this bill nicely. I don't have $2500 to spend on a CPU, but want a more powerful desktop. Not that a Mac is a mere PC, but the VAST majority of Windoze PCs are under $600. Why not put out a $700-1000 Mac? Increase the market share even more. Of course then Wal-Mart would want them, a sure sign of the end...

[FoxyKaye]

Thanks for the chart...I always like to see stuff like this. But your 3Q and 4Q numbers for 2003 and 2004 looked a bit fishy, so I looked into it and made the corrections below for 2004. Don't know if there are any other errors.
2000 was right after the original iMacs were released, wasn't it? It's interesting that it has taken five or so years to reach the same numbers again. Then again, there were a couple times when the only improvement to the PowerMacs was a 100-300 MHz G4 speed bump... :rolleyes:

I remember Apple's colossal market share in the early to mid 1980s, back then it was pretty much given that developers had to make a DOS/Windows and MacOS version of their programs. I think the Universal Binary was brilliant - it keeps G3/G4/G5 users in the loop while moving OS X compatible software forward. Hopefully as more developers take note of Apple's slowly growing market share (come on 5%!) everyone will experience more cross-platform goodness.:D

[dongmin]

Don't know if this has been posted elsewhere, but Apple's pc share has grown to 6.1% in the US; we trail by 0.3 percentage points for third place.

10% is in sight. Perhaps by the end of 2007!

http://appleinsider.com/article.php?id=2158

[plinden]

Don't know if this has been posted elsewhere, but Apple's pc share has grown to 6.1% in the US; we trail by 0.3 percentage points for third place.

10% is in sight. Perhaps by the end of 2007!

http://appleinsider.com/article.php?id=2158
Hmm, interesting. 4.8% -> 6.1% in the US in one quarter. And if their figures for the world wide sales are correct, 2.4% -> 2.7% worldwide.

[Prom1]

Quite a bit here. And this coming from Proud Mac owners, and Apple supporters.

1 > The Intel CPU or platform change is gonna make HUGE strides over to Mac OS X. Multiple OS' on one machine is just pure bliss. I've got 3 ppl at work considering the switch all because of the XEON cpu & the ability to run 3 OS (MS Vista, Linux of their choice, and finally MAC OS X); but their just considering because they'll need to upgrade their hardware regardless.

2> The MacBook Pro is due for a case colour change or revision. Its basically the PowerBook G4's case with an iSight, save for MagLite and few other things. But what will Apple make of the case? Polycarbonate, Magnesium Alloy with carbonfibre chassis? Better heat dissappation?

3> Mac Pro; great case. Its not gonna change anytime soon, and I for one realize its Apple's Monolith machine. Heck if you dont want your G5 PowerMac or Mac Pro I'll be more than gratuitous in receiving it as a hand-me-down.

4> I think this qtr we'll see a slowdown of iPod Nano sales due to the new aluminum enclosure, doesnt have that esthetic appeal to it; but its personal preference.

With MW07 quickly approaching, I think the Mac Pro will get significant sales from those that are waiting, due to recent purchases - cleaning out their old G4 PowerMac closets to make way for new Xeon Core 2 Duo machines.

With Vista awaiting to be released, I really think Apple should align their Marketing campaign to be double sided. Either cheeky to poke fun at lack of innovation and revolution to the Vista OS - but NOT at the user! Remember its actually a benefit that the end user can use the Mac Pro or Mac Book series & iMac to install Vista should the user choose to. Market this as a choice something the end user doesnt get at the office ;) Secondly I think Apple should REALLY push the features, power, security, frequent updates to improve an owners system, ALL as a viable reason to own & use both the Mac & OS X! I thought OS X is supposed to sell the hardware, well damnit Apple ADVERTISE IT!

Bring in the big guns Apple to SHOW consumers, small business', family's etc. Get Software companies to advertise how powerful, efficient and productive their products are. How efficient users are USING the Mac. Come up with a low budget, effective direct perspective of how the Mac OS X is. Appeal to the IT Professional, appeal to the family, appeal to the rebel youth, appeal to the manager of a SOHO business, highlight business partners success that use your hardware to make their success.

[Project]

How has Apple NOT innovated on the Mac line up?

- Completely redesigned and absolutely beautiful architecture on the insides of the Mac Pro
- MagSafe
- 24" all in one machine
- Front Row/apple Remote/iSight in every "portable" Mac
- Two finger right clicking on trackpad

All of this in the year of a move to a new platform.

The REAL innovations though, will occur in the second generation of Intel products. THe most important thing was to make a swift but calm switchover to ensure nobody got nervous over the move. Now we are here, 2007 will be sick.

[BRLawyer]

With such astounding results, you may repeat after me:

Dell is DEAD. HP is DEAD. Apple RULES!

[dalvin200]

this is just pocket change :P

[Evangelion]

How has Apple NOT innovated on the Mac line up?

- Completely redesigned and absolutely beautiful architecture on the insides of the Mac Pro

Is there anything really innovative there? I don't think so. Yes, MacPro is an example of beautiful engineering, but there's not much innovation in there.

- MagSafe

Apple was first to use magnetic power-plug in a computer, but the idea of using magnets is definitely not new. Such power-plugs have been used in deep fat fryers for a long time already

- 24" all in one machine

That's not an innovation, they simply took an existing model and made it a bit bigger. Or do you think that increasing the size of a computer monitor is an "innovation" no-one could come up with? That is a similar "innovation" when Intel releases a 2GHz CPU, and a bit later they introduce a 2.2GHz model. "Whoa, a CPU that is slightly faster then the previous model! I never could have imagined this!"

- Front Row/apple Remote/iSight in every "portable" Mac

Quite a few laptops ship with media-software and webcams. Dunno bout remotes though.

- Two finger right clicking on trackpad

Is that what can be considered an "innovation" these days? Apple has two finger clicking for the sole reason that they do not have a second mouse-button. PC-laptops have no need for that feature, since they all have 2 or more buttons right from the start.

[Evangelion]

With such astounding results, you may repeat after me:

Dell is DEAD. HP is DEAD. Apple RULES!

Last time I checked, Apple is still way behind Dell and HP. So I wouldn't label them as "dead" just yet.

[Queso]

Dell is DEAD. HP is DEAD. Apple RULES!
Dell is losing out in all directions, but HP? They just became the #1 worldwide PC manufacturer again after increasing sales 6%. Dell meanwhile lost 6% last quarter.

I know a loss of 6% and a gain of 6% aren't the same numbers unless you start at a common baseline, but it doesn't take a genius to work out where most of Dell's lost sales went.

[csimmons]

Yes, thank you. At least someone else out there is emotionally distanced enough from the iPod and the Apple entertainment sector to be a bit objective.

Innovation: just what happened to Apple's innovative spirit when it comes to computers? The latest Mac Pro was fitted into the existing (and way oversized) G5 case. The MacBook was disappointing in that - proportionally - Apple did not shrink it at all or make it lighter than its predecessor (a design which had been in existence for about four years). There are more things, but I really don't want to sound like a troll here...

Apple needs to come out with new computer models that are unlike anything else out there. What about a tiny, thin ultraportable? What about a smaller tower, so those of us that want a pro computer don't have to invest in an oversized monster (which is larger than any PCs in the market that I am aware of). Aren't computers supposed to get SMALLER as the technology advances? Why is Apple obsessed with making the iPod smaller and smaller, but does not care as much about its laptops and desktops?

The answer: profit, or course. The iPod is Apple's cash cow. And this, my friends, is what I mean when I say that Apple needs to be partitioning off a little of its innovative energy that it is putting into its entertainment sector and bring it back to the computer line.

Understood now?

OK, now fire away :)

Apple surely does it's homework, otherwise they wouldn't be as successful as they are currently. Perhaps their market research has shown them that there's no "real" market for an ultra-portable, pda, prosumer tower, or the other things that you and a few other have requested? the MP3 player market was a different animal, since the market was there already, albeit heavily segmented.

Insisting over and over again that the iPod is Apple's cash cow when the facts state differently doesn't make sense. It's clearly a large part of Apple business, but it's CORE business is still computers. The numbers clearly show that.

[bigandy]

What about all of those profits from the XBox 360????? Don't those things just consist of about $8.00 worth of plastic????? :p

umm, actually it's a well known fact that (a) consoles are always sold at a loss to entice customers, and (b) microsoft loses over $100 on each console sold.

they make up for this on the rather large profits made on games and licensing games for the platform...

[John Jacob]

I'm leaning towards MacPhone for the Blackberry/Treo/PocketPC killer with an embedded/lite version of Mac OS X.

Remember, any Apple product using Mac OS has to have "Mac" in it's name from now on per SJ.

So consumer iPhone and MacPhone, or, MacPhone and MacPhone Pro, if the consumer phone has an even more slimmed down version of Mac OS X on it.

Not very likely that a phone product would use a version of Mac OS X, however slimmed down. Mac OS X does not have the real-time capabilities that are required for a phone to handle call processing. Symbian OS, Windows Smartphone OS (based on WinCE) and Linux do have real-time extensions.

[ewinemiller]

Quite a few laptops ship with media-software and webcams. Dunno bout remotes though.

Remotes are pretty common too, though it's usually an extra option unless the media version of XP is installed. I can remember looking at a Sony laptop geared towards being a media center with a remote back when the centrino platform first came out and skipping that option when I bought a Dell at the same time. The last sound card I bought also came with one. You're right, nothing innovative there.

I think Apple is starting to slide in this department, though you certainly can't argue with the results in terms of profit. Products are still nice (as I type this on a MBP and dream about the rumored upcoming 8 core MP) but nothing that I look at and think "Wow nobody else is doing this!". I think the last time I thought that was when they released the Airport Express. I'm looking forward to seeing what they will do with a media center box, maybe they will knock my socks off again some day.

[joeshell383]

Apple didn't update the form factors was to ease people into Intel. Apple had to convince upgraders that they were still using a Mac, and that the inside was the only thing that changed (for the better). Now that Gen 1 Intel is complete Apple can update the form factors as they have proved Macs will always be Macs.

[joeshell383]

Apple has got some MAJOR work to do. I know plenty of people who will only buy PCs (AND SPECIFICALLY NOT BUY MACS, OR EVEN, APPLE PRODUCTS) because they are unaware of what the LATEST Macs can do. The pre-OSX era hurt Apple's reputation. People still believe Macs are incompatible with everything; Internet sites, Word, etc. Some people thinks Macs crash MORE than PCs. People associate Macs with being slow and using out-of-date tech (I don't recall Intel in the "Get A Mac" ads, even though it sure would help considering that everyone and there dog trusts Intel because Intel Inside has been plastered on every computer they've seen). And of course, people hate the ONE-BUTTON MOUSE (especially if they associate Apple mice with the hockey puck mouse), because Apple has not advertised Mighty Mouse, universal USB mouse compatibility, contextual menu support, etc. Seems minor, but quite a number of people are held back by one or more of these things. Plus, as far as the mouse goes, it should be two-click enabled by default! Macs are far more desirable, powerful, capable, and compatible than they have ever been before (and they weren't always these things before). Apple needs to show it. In addition, they definitely need a headless tower, and more professional looking systems. The BlackBook and Pro systems are wonderful: sleek, stylish, and professional, but try bringing a white MacBook or iMac, Apple's only offerings at those price points) into a corporate office meeting... Finally they need more advertising to not only the people mentioned above, but to people who don't use the computer that much and think buying a computer is the same all around.

P.S. I think Boot Camp should be emphasized much more, and we all know once someone is on board Mac OS X does the rest o' the work.

[backspinner]

but try bringing a white MacBook into a corporate office meeting...
the white macbooks are totaly accepted by women in an office setting...

[dernhelm]

Is there anything really innovative there? I don't think so. Yes, MacPro is an example of beautiful engineering, but there's not much innovation in there.


So what are you expecting? The computer industry hasn't been truly innovative since the first ICs were produced. I suppose you could claim the invention of the mouse was relatively innovative, but certainly not the addition of the keyboard - those had been used in typewriters for years! For the rest of it, all it is is binary mathematics - with short and long term storage - this was all stuff mathematicians had a handle on for millenia. Nothing innovative there right? The internet? Not really innovative, people had been connecting PCs together with serial and parallel cables for years before that. The internet did it better, but so what? To be truly innovative, you must come up with something that no one else has ever done, right?

In case you hadn't noticed, pretty much everything in the computer industry had been done before, or can be seen as an adaption of something else. So by your definition, there are no new ideas and therefore no innovation anywhere. Which leads me to ask, what innovative things are you looking for, that you feel you can criticize Apple for not being innovative enough?

[Chef Medeski]

An ultra portable or headless tower is innovation? The world is full of them. On the other hand, Front Row, Boot Camp, built-in iSight, Mag-safe connector, mighty mouse, much more bang for the buck iMacs, laptops and MacPro's do not count. As I remember, this time last year almost everybody was complaining about "obsolete" G4's in laptops and the limited number of hard drive and optical drive slots on the PowerMacs. I guess solving those problems does not count.

iPods is the cash cow and what did Apple do about it? Well, colorful nanos are cool, but I prefer a white one anyways. I'd think iPod camp would have a lot more to complain about. Geez...
Ummm....

Front Row: A little list of Music and Movies a la Windows Media Center... not new

Boot Camp: Dual booting.... thats been around for decades...

Built-in-iSight: Ok just because it has a fancy name doesnt mean its any different... its known as a webcam. Theyve been around almost a decade.... just b/c Apple was one of the first (not the first) to put it in doesn't mean they're special or that it counts as innovations

Mag-safe: Youve got 1!

Mighty Mouse: behold the two-button mouse that doesnt work. You're right that is innovative... that a company would make such a lousy product whose main functions doesnt work.

Bang for the buck: Thats not innovation, thats economics. Apple's not the first one to decrease the price of a product. :rolleyes:

I would all count these as advances not innovation. While I do appreciate them and believe Apple is doing well; don't call them what they ain't: Innovation. Call it as it is: Improvements.

Its hard to ask for much while these guys are finishing a whole new OS. Trying to Beta-Test it. While trying to keep up with all the new Intel chips and dealing with the new techonology pipeline. They've delivered huge improvements, may not be innovation; but it certainly is better. And I rather have that than nothing.

[iancapable]

Dell is losing out in all directions, but HP? They just became the #1 worldwide PC manufacturer again after increasing sales 6%. Dell meanwhile lost 6% last quarter.

I know a loss of 6% and a gain of 6% aren't the same numbers unless you start at a common baseline, but it doesn't take a genius to work out where most of Dell's lost sales went.

Since when did HP become the number 1? I've not heard anything, do you have an article or something that I could possibly read?

[Chef Medeski]

How has Apple NOT innovated on the Mac line up?

- Completely redesigned and absolutely beautiful architecture on the insides of the Mac Pro
- MagSafe
- 24" all in one machine
- Front Row/apple Remote/iSight in every "portable" Mac
- Two finger right clicking on trackpad

All of this in the year of a move to a new platform.

The REAL innovations though, will occur in the second generation of Intel products. THe most important thing was to make a swift but calm switchover to ensure nobody got nervous over the move. Now we are here, 2007 will be sick.

Again:

-Intel Chips are not innovation. Its change of suppliers.
-Magsafe is an actual innovation.
-24" monitors have been around for like 10 yrs.... slappig into an iMac isnt innovation its either ballsy managing or perfect timing
-A webcam.... and a software to list all ur media.... nice not new. ITS A WEBCAM PEOPLE. THATS ALL. IT DOESNT SAVE CHILDREN.
-I thought Sony had a laptop that did this already? Can't confirm.

[lmalave]

Dell is losing out in all directions, but HP? They just became the #1 worldwide PC manufacturer again after increasing sales 6%. Dell meanwhile lost 6% last quarter.

I know a loss of 6% and a gain of 6% aren't the same numbers unless you start at a common baseline, but it doesn't take a genius to work out where most of Dell's lost sales went.

HP is doing very well with its Pavilion multimedia laptops. Both of my roommates have one. HP is aiming for the consumer and a big retail presence in stores like Best Buy so they are actually more direct competitors to Apple now than Dell is.

Dell's problem is their business model has always been based on 2 things: 1) customization, and 2) low price. Everyone does customization now, and the problem is that if you are competing in price there is *always* someone that will beat you in price down the road. If you think Dell is going downhill now, wait until Taiwanese and Chinese manufacturers really start putting pressure. Since Apple's business model is based on innovation, it is actually much more likely to still be in a strong position 10 or 20 years down the road than dell is...

[minnesotamacman]

As always, the iPod is Apple's real cash cow.

Too bad for those of us who wish they would divert a little more of their attention to their computer line.


Did I not see that 58% of the revenue came from the computers? How does this make the iPod the cash cow?

[Queso]

Since when did HP become the number 1? I've not heard anything, do you have an article or something that I could possibly read?
The Gartner report released yesterday had Dell and HP virtually tied for first place with 17.2% market share each (HP ever so slightly higher) and the IDC one had HP 300k units (or 0.2%) ahead.

Dell are still #1 in the USA, but even there the gap narrowed, from Dell having a 2.2 million unit lead in the previous quarter to a 1.5 million unit lead in the quarter just ended.

HP are really leaping ahead. I expect they will take the US #1 spot back from Dell sometime next year.

[lmalave]

Heh heh...yeah me too. Maybe that's what The Steve (tm) was referring to when he said that '07 was going to be one of the most exciting years for Apple yet.

Or it could just be a new colour range for the iPod nanos.

I don't think Apple will come out with a "consumer" tower for the foreseeable future. I think Apple's strategy is to make "consumer" products like the Mini which are made to look more like consumer electronic devices (e.g. look like a stereo or DVD players). A tower just does not fit that category. Apple makes the Mac Pro for professionals that will actually put in a specialized video or audio card for their *professional* work. And yes, a consumer like a gamer might want that expandability just so they can get the latest and greatest gaming video card, but Apple is *not* going to aim for that category anytime soon because: 1) it's a small fraction of the market compared to the overall consumer market, and 2) the PC owns the gaming market. And why would Apple want to go for the PC gaming market anyway? A disproportionate amount of gamers just build "white box" computers so they can optimize everything to their liking for the lowest cost, and that's *definitely* not Apple's market.

[lmalave]

Its clear Apple is missing something in the midrange desk top line. Its time for the Cube or Macintosh or headless iMac or Max Mini or something. iMac isnt for everyone and the world has billions of big beautiful displays just waiting for a midrange Mac but if Apple prices it again the same as the towers it will be another failure. Its way past time for the next Macintosh. Needs a real GPU, at least 1 expansion slot and should be priced right along with ugly iMac:D or a pinch below.

This is not beyond the realm of possibility. I could see Apple modifying the Mac mini at some point to make the graphics card more accessible and upgradeable. But of course it would be a laptop graphics card and not a full desktop graphics card. Do ATI / nVidia sell something like mini-PCI graphics cards to consumers?

But anyway, althought it's a possibility I think it's a slim one, since gamers are just not Apple's focus right now...

[Evangelion]

So what are you expecting?

I'm not expecting anything really. I'm just disputing the claim that re-designed MacPro is "innovative". And it seems that you are agreeing with me.

In case you hadn't noticed, pretty much everything in the computer industry had been done before, or can be seen as an adaption of something else. So by your definition, there are no new ideas and therefore no innovation anywhere. Which leads me to ask, what innovative things are you looking for, that you feel you can criticize Apple for not being innovative enough?

Apple HAS innovated, and I'm not claiming otherwise. I merely said that the things the original poster listed were NOT innovative. And it seems that you are agreeing with me. So what are you complaining about? Because I said something that is 100% fact?

[Evangelion]

-Magsafe is an actual innovation.

It's not. Such power-connectors have been around for a long time. The thing that Apple did was to be first to put one in a laptop. But the actual technology is not new.

[biggerbearbrian]

*sigh* How many times do we have to refute your assertions with facts before you stop repeating them?

To wit, the iPod is not Apple's "cash cow". By definition, if there is something that gains more revenue/profit than the iPod, then the iPod cannot be the cash cow. 58% of Apple's revenue still came from sales of Macs. Gross margins for both Macs and iPods has always been similar (hovering a bit below 30%), so the Mac also generates the majority of the profit for Apple.

As for Apple's innovative spirit lacking when it comes to the Macs, let's just point out that it Apple updated the iPod in October 2005 to the 5th generation, and we JUST got the 5.5th generation last month. Apple took a year to add slightly brighter screens, better battery life (only for video), and games. The nano just gained the anodized aluminum exterior -- wow, Apple's reaching back to the past for it's innovation now! And the shuffle got slimmed down and consolidated into one product. All this doesn't sound exactly like innovation to me. (Of course, Apple doesn't really need to innovate, since they're already selling iPods by the boatload.)

In contrast, Apple brought all of its Macs over to the Intel processor. The Mac Pro was dramatically higher value, what with double-wide graphics card slot, dual optical drives, 4 internal hard drive bays, etc., etc. All Macs (except for the Mac Pro) now have Front Row and a remote, which is a great feature. Built-in iSights have also migrated across the entire product line. The MacBook and MacBook Pro now have MagSafe -- a great innovation. Boot Camp is now supported on all new Macs. The Xserve has new features like lights-out management, redundant power supplies, etc. And we've seen some great things coming for Leopard, what with Time Machine and Spaces and iChat Theater and Core Animation and iCal Server, etc., etc., etc.

It seems to me that Apple is innovating more on the Macintosh side of things than they are with the iPod. What are they going to add next on the iPod -- wireless? *gasp*, so innovative!

Seriously, can we stop with this myth already? It's the same thing with all of Apple's "woes" with quality control (which was busted by the recent consumer reports articles where Apple has actually brought DOWN the number of new computers needing repair in their first year). It's something that's repeated ad nauseum by a few vocal people, when it's really not a problem at all. Same here: everybody gawks and writes about the iPod precisely because more people can afford it and more people can use it with whatever computer they have. So, obviously, you will hear more about the iPod.

Let's see if repeating myself again has any effect: the iPod is not Apple's cash cow!

Understood now?

OK, now fire away :rolleyes:


I think the argument can go either way. While iPod (which I love btw) is less than half Apple revenue ok. But if they were to just add the iPod line today, and have the amount of revenue they are reporting from it, the financial report would be "iPod has given us nearly a 100% increase in revenue".

So get some hershey's syrup, cause we got milk.

[justflie]

Regardless of why they made the money, AAPL is up $5 right now. Not too shabby, almost to $80 a share

[alec]

everytime apple has posted earnings in the past 2 years, i wake up the following morning and go 'why didnt i ever invest in apple'.

Damnit.

[sethypoo]

Expect it to take a dump tomorrow morning.

"Dump" huh? Methinks you don't trade stocks much. It's up over 6% now. Analysts = a dime a dozen.:rolleyes:

[digitalbiker]

everytime apple has posted earnings in the past 2 years, i wake up the following morning and go 'why didnt i ever invest in apple'.

Damnit.

Apple hasn't done that well over the last year.

It has done great over the last 6 - 7 years but it has been fairly static over the last year or so.

In fact last year in January it was higher than it is right now.

[digitalbiker]

Apple didn't update the form factors was to ease people into Intel. Apple had to convince upgraders that they were still using a Mac, and that the inside was the only thing that changed (for the better). Now that Gen 1 Intel is complete Apple can update the form factors as they have proved Macs will always be Macs.

I agree completely.

None of the mac products significanly changed form factor even though the "innards" changed significantly.

This year should be the year we see major style changes. The old line is getting seriously stale.

[rdowns]

Again:

-Intel Chips are not innovation. Its change of suppliers.
-Magsafe is an actual innovation.
-24" monitors have been around for like 10 yrs.... slappig into an iMac isnt innovation its either ballsy managing or perfect timing
-A webcam.... and a software to list all ur media.... nice not new. ITS A WEBCAM PEOPLE. THATS ALL. IT DOESNT SAVE CHILDREN.
-I thought Sony had a laptop that did this already? Can't confirm.

I can confirm that my Sony Vaio does in fact save children.

[rdowns]

"Dump" huh? Methinks you don't trade stocks much. It's up over 6% now. Analysts = a dime a dozen.:rolleyes:

At a dime, they are overpriced, just like Macs. :D

[bbarnhart]

Apple hasn't done that well over the last year.

It has done great over the last 6 - 7 years but it has been fairly static over the last year or so.

In fact last year in January it was higher than it is right now.

I'd say a +40% increase in stock price from Oct 19, 2005 to Oct 19, 2006 is doing pretty well.

[plinden]

... try bringing a white MacBook ... into a corporate office meeting...
I brought my wife's white MB into work last week to test out our webapps on a Mac (because the cheap b'staards won't even pay $600 for the cheapest Mini) and I got a lot of interest from the rest of the developers ("What? They got you a Mac? How'd you manage that?) - 95% of whom are males in their 20s and 30s.

[rdowns]

Thanks for the chart...I always like to see stuff like this. But your 3Q and 4Q numbers for 2003 and 2004 looked a bit fishy, so I looked into it and made the corrections below for 2004. Don't know if there are any other errors.



Thanks. I'll have to go back through all the reports I have one day when I'm bored.

[brianbobcat]

Can anyone who listened to the whole webcast tell me if the Product (RED) nano was mentioned? I'm working on a project about it and would love to include a quote from an apple exec.

Thanks,
-Brian

[macEfan]

I knew I should have bought apple stock years ago....:D

[JGowan]

Wow, amazing how emotional people always get whenever I make a statement that could sound slightly anti-iPod... I know you love your iPod and all (I am very fond of mine myself), but over the last few years Apple has been focusing a dispropotional amount of energy into their cute little gadget which has massively boosted their profits. For those of us that don't salivate over all things iPod, I think this is too bad.

That is all.Dude...

INTEL TRANSITION >> BRAND NEW ARCHITECTURE for the newest Towers >> 24" IMACS >> NEW MACBOOKS >> BUMP IN SPECS for MAC MINI >> LEOPARD soon and will be KICKASS

Just because people won't buy a $1200-$4000 computer as fast as they buy a $249 iPod is not Apple's fault. It's economics. Plus the same people who are buying the iPod are oftentimes the same people buying 2, 3 or more 'Pods for their relatives as gifts.

Give Apple a break. Their computer line-up is excellent.

[iancapable]

The Gartner report released yesterday had Dell and HP virtually tied for first place with 17.2% market share each (HP ever so slightly higher) and the IDC one had HP 300k units (or 0.2%) ahead.

Dell are still #1 in the USA, but even there the gap narrowed, from Dell having a 2.2 million unit lead in the previous quarter to a 1.5 million unit lead in the quarter just ended.

HP are really leaping ahead. I expect they will take the US #1 spot back from Dell sometime next year.

Oh my... Showing signs of a dying Dell... Apple is looking good at the moment though.

If Apple grabs even 10% of the Market, I reckon we will see a lot more software ported to OSX (namely games).

I'm porting all my code over to OSX, so will be on of those converts.

[jessep28]

Dude...

INTEL TRANSITION >> BRAND NEW ARCHITECTURE for the newest Towers >> 24" IMACS >> NEW MACBOOKS >> BUMP IN SPECS for MAC MINI >> LEOPARD soon and will be KICKASS

Just because people won't buy a $1200-$4000 computer as fast as they buy a $249 iPod is not Apple's fault. It's economics. Plus the same people who are buying the iPod are oftentimes the same people buying 2, 3 or more 'Pods for their relatives as gifts.

Give Apple a break. Their computer line-up is excellent.

I agree with the economics standpoint. Computers are Long Term assets more than the $100-300 iPod that the consumer purchases.

You of course are seeing iPod sales increase - that's Apple's cash cow. I think that using Q3 growth which include the back to school season as indicitave of Apple's real growth is a little premature.

If you saw the numbers, notebooks saw a strong increase, while desktops only saw a marginal increase. Now, of course more college kids are going to get laptops. That could be a source of the larger movement in notebooks.

I really want to see how things turn out in Q4. If units shipped drops or stays stagnant, then I would discount all the archetype changes in the Mac lines are producing real sales growh. However, if sales still stay reletively strong, then Apple may be in for some real growth in areas not just iPod related.

We are headed into the Christmas (Holiday) shopping season. I know iPods are going to be strong, but am really excited to see if the growth in Mac sales continues to increase.