Apple's Q2 2006 Financial Conference Call Notes

Discussion in 'MacRumors News Discussion (archive)' started by MacRumors, Apr 19, 2006.

  1. macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]

    Mac business 50% of quarterly revenue.

    - Up 4% from the same quarter last year
    - Pleased with Intel transition progress, and "solidly on track" to complete the Intel transition by the end of calendar 2006.
    - "Pause" in sales due to transition anticipation. Reasons listed include: delays due to shipping delays on MacBook Pro, users awaiting Universal Apps and users awaiting upcoming Intel Macs.
    - 1,112,000 Macs sold during March; $1.572 Billion in Revenue.
    - 614,000 Desktop Macs ($833 million revenue)
    - 498,000 Portable Macs ($739 million revenue)

    Music business 50% of quarterly revenue

    - Up 79% year over year
    - Over 50 million iPods sold cumulatively
    - 8,526,000 iPods sold
    - Over 1 billion iTunes Songs sold. 87% marketshare.
    - iTunes: 2.9 million songs, 60,000 podcasts, 9000 music videos, 70+ television programs
    - iPod: 78% of MP3 player marketshare (up from 71% in December) in U.S.
    - 2000+ iPod Accessories
    - 40% of New Cars sold in U.S. will offer direct iPod integration

    Retail
    - $636 Million in revenue
    - 50% of Macs sold were "new to Mac"
    - 141 Stores Open by end of Quarter

    Outlook
    - Still expect a pause in demand in Mac business due to transition
    - Happy with the Intel transition
    - "Very excited about the products in our pipeline"

    From Q&A
    - Software sales better than expected (iLife and iWork, particularly).
    - iPod: Plans to increase local advertising and point of sale locations in outside countries to boost marketshare.
    - Question about Intel Mac mini price increase: Apple viewed Mac mini as still an "incredible" value, wouldn't comment on future pricing plans.
    - Supply/Demand balance for Intel Macs.
    - 40 New retails stores this year, primarily in the U.S.
    - Boot Camp impact? A lot of customer requests for it. Many Windows users were considering switching to the Mac, and feel it makes it more appealing. Still gathering data. "High level of interest". Not releasing the download number for Boot Camp.
    - Again, on target to transition the entire product line to Intel by end of the year.
    - No plan to sell and support Windows.
    - Music store "above break even"
    - Don't feel the French DRM legislation is good for anyone
    - Very excited about the product pipeline including Macs
    - Nothing holding back the Intel transition
     
  2. macrumors 65816

    yankeefan24

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    NYC
    #2
    more apple profit the better
     
  3. macrumors regular

    D3LM3L

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    New Jersey
    #3
    I wish they had asked something about Leopard...
     
  4. macrumors newbie

    Joined:
    Feb 10, 2006
    #4
    great news!

    This sounds like a good time to buy more APPL stocks. :)
     
  5. macrumors 68020

    aricher

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    Feb 20, 2004
    Location:
    Chi-il
    #5
    As a (minor) Apple shareholder I am really looking forward to seeing what the full hardware Intel transition and Boot Camp factor will do for sales. That said, I'm not making the switch to an Intel Mac until Adobe gets it act together and Apple releases 'Leopard" and iLife '07. It's astounding that the music biz has become 50% of their quarterly revenue. Keep it up Apple!
     
  6. Moderator emeritus

    mkrishnan

    Joined:
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    Location:
    Grand Rapids, MI, USA
    #6
    *sigh* Agreed. :( But otherwise, it's a good time to be Apple. :)
     
  7. macrumors 68020

    daveL

    Joined:
    Jun 18, 2003
    Location:
    Montana
    #7
    3RD Party Apps

    Apple's biggest Intel transition challenge. I'm a bit weirded out by the fact that Apple ditched the PowerBook so early in the game. Lots of Pros use them for field media work. On the consumer side, it's just not that big a deal. Once the Pro desktops come out (September), the full flock of Pro media apps need to be available (including 3rd party). Just my take. I really don't see it happening that quickly, read Adobe. Maybe Apple will maintain the PPC desktop line along side the new Intel desktops to fill the void until the apps are available on the Intel platform.
     
  8. macrumors 68030

    Analog Kid

    Joined:
    Mar 4, 2003
    #8
    50% of Macs sold (in retail, if I understand it) were "new to Mac"-- That is a big deal...
     
  9. Moderator emeritus

    EricNau

    Joined:
    Apr 27, 2005
    Location:
    San Francisco, CA
    #9
    Wow, those figures are better than I would have guessed (especially the growth percentages).

    Seems like Apple is getting stronger. :)
     
  10. macrumors P6

    twoodcc

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    #10
    great news!! can't wait to see what new products are in store for us! :)
     
  11. macrumors 65816

    treblah

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    #11
    What happened to all those iPod killers? :D
     
  12. macrumors 65816

    Foxglove9

    Joined:
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    Location:
    Brooklyn, NY
    #12
    Very impressive news from Apple. Also would have liked any info about Leopard. Next year should be the big Apple year it sounds like. That would be the first true year of all Intel products, and going head-to-head with Vista.
     
  13. macrumors 6502a

    Joined:
    Jun 18, 2004
    #13
    See, there's this device...i think it's called an ipod. i don't think it's going to catch on but...
     
  14. macrumors regular

    Joined:
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    Location:
    Cincinnati, OH
    #14
    I wish everyone would follow France on this DRM thing. That would be good for everyone. I love and use iTunes because of the convenience, but I despise DRM because it means I don't own anything.
     
  15. macrumors member

    Shaker

    Joined:
    Apr 19, 2004
    #15

    Leopard is going kick Vista's a$$.
     
  16. macrumors regular

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    Location:
    New Jersey
    #16

    Ditto!:D


    That's what were after... more consumers = more and better apple products
     
  17. macrumors 603

    Stella

    Joined:
    Apr 21, 2003
    Location:
    Canada
    #17
    - "Very excited about the products in our pipeline"

    What else are Apple going to say - they always are - even if nothing materialises ( or projects are cancelled that us commoners never see ).

    Anyway, despite the transition, I think Apple's performance for sales of PCs ( Personal Computers - before anyone over-reacts ) were quite impressive.
     
  18. macrumors member

    Joined:
    Apr 18, 2006
    Location:
    Waiting for macbook land
    #18
    I am one of the pc guys about to make the switch. I am waiting to see the new version of the ibooks. Apple has created a really cool exciting vibe and I see it everywhere. I used to laugh at Mac users..until I bought an ipod and thougt..wow this thing is brilliant, so i looked into the company further. Now i am hooked..I watch these boards way too much. I am hoping for a new ibook (Mac Book?) ASAP. I relaly do hope it is ready soon. It would seem to me that it is a product that could be one of there best sellers.
    ALL positive..things look good for Apple..I like it!
     
  19. macrumors regular

    pavetheforest

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    Location:
    Pennsylvania
    #19
    i'm with him, but now i'm thinking about the MBP....maybe i'll wait a week...
     
  20. macrumors member

    Joined:
    Oct 31, 2003
    #20
    yeah i agree also. i bought a couple of things from itunes when it first came out, but then regretted it because as lenient as 'fairplay' is, i still don't really own the music. needless to say i haven't bought anything from itunes for about the last three years, and i don't know anyone else who has either. the same goes for copy protection on cd's. my girlfriend works in a record store, and they get quite a few returns everyday from people who can't copy a cd to their computer, or use a song from the cd as part of a mixtape for a friend, etc., and another significant portion of people who won't even buy the cd in the first place. while the number of people not buying (or returning) likely pale in comparison to the number of people that actually do buy, i think it's fairly significant that someone would rather go without than concede to an unjust compromise (drm).

    good for france on this one.
     
  21. macrumors 603

    Stella

    Joined:
    Apr 21, 2003
    Location:
    Canada
    #21
    I do too.

    Unfortunately, reality, DRM is a necessity, we need a unified DRM implementation that is used by all devices and all music stores.
     
  22. macrumors 68000

    MrCrowbar

    Joined:
    Jan 12, 2006
    #22
    Mikea, you are a victim of the so called halo effect. :p

    I knew G4 powerbooks before I knew iPods though. I'm still reluctant tu buy an iPod though. If I buy one, I want my library on it, so the 30GB would do. But the n I tell myself "Do you relly want to pay 300 bucks for a music player?" Now I have a shuffle and it's fine. Some dumb software problems here and there but besides that I am happy. No worries about scratching the display too. Who needs displays for listening to music anyway? :p :rolleyes:

    Now I'm waiting for a small apple laptop to replace my windows monster here. Computers do very funny things when the RAM is broken to a point where redundancy isn't enough anymore for correcting the errors. Naughty stuff :rolleyes: :mad:
    I don't know what I will do with this mashine once I mave my Macbook (Pro). I can hardly do anything on it now...

    And since there's Boot Camp and Parallel's stuff (works nice by the way, I've tried it for an hour in a store) I'm thinking of ditching my windows mashines for good. Maybe keep one around for the fun of building a computer and upgrading and taking care of it :rolleyes: . I've always liked the idea of water cooling. Hope the Intel PowerMacs will have that again, it's just "cool" :rolleyes: if you think about it.

    Is there a way of hooking 2 extra screens to an iMac? I love working with multiple screens. Great for debugging graphic heavy apps ;) , just run it on one screen and monitor the code (and system output) on the other. But 3 screens would be even cooler. Is there a Mac that can handle this? :confused:
     
  23. macrumors regular

    Joined:
    Feb 3, 2006
    #23
    I am ripping out my hair! I want a fullscreen video ipod SO BAD!!!!! I WANT IT NOW!
     
  24. macrumors 68000

    MrCrowbar

    Joined:
    Jan 12, 2006
    #24
    There you go:
    [​IMG]
    :p :D :eek: :rolleyes: :cool: :) :eek:

    Oh, you meanT fullscreen. I thought you meant widescreen ;)
     
  25. macrumors 68000

    Joined:
    Oct 8, 2003
    #25

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