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MacRumors

macrumors bot
Original poster
Apr 12, 2001
55,476
17,822
Hilights from Apple's Conference Call today:

- 771,000 CPUs shipped during the quarter (down from a year ago) with higher average revenue per system sold.
- iBooks and Powerbooks sold very well with portable products being 46% of all Mac sold. The desktop products down, especially the iMac.
- PowerMac G4 sales are soft, but G5 response has been strong.
- 304,000 iPods (Record Breaking Quarter)
- 6,500,000 songs sold in iTunes Music Store.
- 50% of customers buying Mac systems at Apple Stores did not currently own a Mac

Based on Q/A session:

- In this first quarter of the iTunes Music Store, they've come close to breaking even, and sold 6,500,000 songs thusfar.
- Would not give the breakdown of iTunes music earnings due to competitive reasons.
- Would not specify the breakdown of 12", 15", 17" PowerBooks for competitive reasons.
- PowerMac G5 shipping still expected to begin in August.
- Windows iTunes still on track for release by end-of-year

(For more in-depth details, MacMinute and MacCentral have further breakdowns of product numbers.)
 

5thorseman

macrumors newbie
May 19, 2003
8
0
Bristol England
iTMS

Looks like iTunes music store sales are slowing down, hopefully our wonderful computer company will get past those European licensing laws so that us British folk can get stuck in!

//5th
 

jimjiminyjim

macrumors 6502
Feb 24, 2003
437
13
Canada
iMacs

It does not surprise me that the iMac is down - if you have cash, you'd buy a powermac, if you don't, you'd buy an e-mac (as I did)
 

Dahl

macrumors 6502a
Nov 21, 2002
629
18
L.A.
They really think the G5's will ship in August ? I have now asked more than one place and they all say September. But I hope Apple can prove them wrong.
 

jimjiminyjim

macrumors 6502
Feb 24, 2003
437
13
Canada
Wow

Total number of CPU's down for the quarter, but higher revenue per machine sold. The prices went down, apple earned more money per machine! Sweet! If they can earn more per machine and drop the price again, I won't complain (and neither will I be surprised)
 

billyboy

macrumors 65816
Mar 15, 2003
1,165
0
In my head
No wonder Apple arent the stock market´s darlings. As a Mac user and potential ongoing customer I have every confidence in Apple coming up trumps with ipods, iTMS and G5 Powermacs for Christmas, but with all the evasive answers and no comments at this conference, I imagine it must be kind of hard for the analysts to get too enthused about the next quarter.
 

Freg3000

macrumors 68000
Sep 22, 2002
1,914
0
New York
The two big problems I see is the slowing iMac sales and the slowing iTMS sales. Apple can fix the mix store sales if they expand the store internationally and to Windows users soon. That is easy. For the iMac.....they need good sales. When PC users think MAC (yes, they think Mac in capitals) they think of the flat-panel iMac. Apple needs to bring the iMac above the eMac spec wise, as it currently is not. There is a lot of room now for the iMac, as there is no more PowerMac ceiling. Hopefully we'll see much faster iMacs soon. I don't believe a redesign is needed.
 

beg_ne

macrumors 6502
Jul 3, 2003
452
0
Originally posted by Dahl
They really think the G5's will ship in August ? I have now asked more than one place and they all say September. But I hope Apple can prove them wrong.

Hopefully, Apple sure seems to think so.
I just checked my Apple Store order and the ship date has been updated to:

On or before
08/29/2003

Whereas it used to be:

On or before
09/02/2003
 

daveL

macrumors 68020
Jun 18, 2003
2,425
0
Montana
Huh?

Originally posted by Dahl
They really think the G5's will ship in August ? I have now asked more than one place and they all say September. But I hope Apple can prove them wrong.
"They" is Apple. I'm not sure what you're saying. My experience with purchasing from Apple is that they give you worst case, on your doorstep dates. If other info seen here on MacRumors holds true, the single CPU models will go out the first part of August and the duals will follow around the third week of August. Given that a lot of folks giving the "on or before September 2" feedback are getting duals, it seems to add up, for me at least.
 

simX

macrumors 6502a
May 28, 2002
764
4
Bay Area, CA
Re: iTMS

Originally posted by 5thorseman
Looks like iTunes music store sales are slowing down, hopefully our wonderful computer company will get past those European licensing laws so that us British folk can get stuck in!

//5th

Could you explain to me how you came to the conclusion that iTunes music store sales are slowing down?

The music store was introduced this fiscal quarter on April 28. The quarter ended June 28. That's exactly 2 months, which means they sold 2,500,000 songs per month. Since June 28, they've sold 1,500,000 songs. It's just about smack in the middle of the month, which means they're on track for 3,000,000 songs for July. If you're conservative, you'd say they're probably going to hit even and stay at about 2,500,000 songs this month.

It doesn't seem to me like sales are slowing down.

[EDIT: Sorry, it didn't say in the MacRumors' highlights the number of songs sold in this last fiscal quarter. For that info, refer to this story at MacMinute.]
 

mymemory

macrumors 68020
May 9, 2001
2,495
-1
Miami
iTMS will go down just because once you furfill your library with the songs you are allways looking for there is not more reson to spend money in the srevice, may be just 5 songs per months or so.

For example, you go to a music store and get 4 CDs at once but you do not go every week and get 4 CDs every time you go, so, the iTMS will normailize eventually, that doesn't mean the system is not popular any more, it mean the public got what they were looking for and once the got it that was it.
 

raschild

macrumors member
Jul 1, 2002
30
0
Good ol' US of A
iTMS

My question is how much new music is being added to the iTMS library from week to week? Given the limited audience (Mac users), how long will sales stay where they are right now? I would think a consistent supply of new music and adding the MS community will make a nice cashcow for Apple.
 

simX

macrumors 6502a
May 28, 2002
764
4
Bay Area, CA
Originally posted by mymemory
iTMS will go down just because once you furfill your library with the songs you are allways looking for there is not more reson to spend money in the srevice, may be just 5 songs per months or so.

For example, you go to a music store and get 4 CDs at once but you do not go every week and get 4 CDs every time you go, so, the iTMS will normailize eventually, that doesn't mean the system is not popular any more, it mean the public got what they were looking for and once the got it that was it.

But like I said, the numbers have shown that that's not the case, so far, anyway.

I think one thing that you're forgetting, though, is that Apple is adding new tracks to the iTMS weekly. With the couple million potential customers, there's got to be a healthy return on that. I mean, if just 1% of the potential customers (let's say a conservative 1 million) of the iTMS buy just 1 new track each week, that's an extra 10,000 songs each week, and that's a pretty conservative estimate.
 

fred

macrumors member
Dec 24, 2002
55
0
Re: Apple Financial Call Hilights

Originally posted by Macrumors
Hilights from Apple's Conference Call today:

-Based on Q/A session:

- In this first quarter of the iTunes Music Store, they've come close to breaking even, and sold 6,500,000 songs thusfar.

What precisely do they mean by broken even ? Does it mean they've recouped their initial capital outlay to build and promote the service ? I always thought that Apple would make about 10% per song so perhaps they are referring to the capital and start-up costs
 

grapeice

macrumors newbie
Jul 23, 2002
7
0
Well, at least Apple is making a profit. I think they are taking risks, which means added costs, and it really looks like their risks are and will pay off.

By the way, is "hilights" spelled incorrectly on purpose? :)

hilights -> highlights
 

morgan-e

macrumors member
Jul 13, 2003
33
0
Illinois, USA
Re: iTMS

Originally posted by raschild
My question is how much new music is being added to the iTMS library from week to week? Given the limited audience (Mac users), how long will sales stay where they are right now? I would think a consistent supply of new music and adding the MS community will make a nice cashcow for Apple.

although i can't bring up exact figures, if you sign up at the store (not necessarily purchasing anything) you can, as i've done, chose to recieve a weekly email as to what's been added. it's entirely fluid, and i don't see that "people have gotten what they want, and won't come back." although it's specifically the different, it's still fundamentally a music store so people will keep coming back when they want music! being at break even when its library still hasn't been completed is an awesome sign. if you've used it, you'd know that the immediacy factor is enough reason (well, probably the only reason) to come back.
 

Dahl

macrumors 6502a
Nov 21, 2002
629
18
L.A.
Originally posted by beg_ne
Hopefully, Apple sure seems to think so.
I just checked my Apple Store order and the ship date has been updated to:

On or before
08/29/2003

Whereas it used to be:

On or before
09/02/2003
That's nice.
I'm glad to see Apple is trying to get them out as soon as possible. I guess after waiting for a new machine for so long, the waiting time is killing me, but I'm ok with waiting just a little bit more.
I just went to the new Apple store in Santa Monica, CA and it would have been nice if the new machines were screaming at you from the windows. :)
 

copperpipe

macrumors regular
Jul 9, 2002
127
0
the killer low budget

I would bet that the eMac sales blew away the iMac sales, because - get this - the extra cash for a rotatng screen is a luxury of the rich, and in these times, luxurious expenses like that are rare. I was bummed about the new iMac, because the purpose of it changed when the new ones came out. I always thought the purpose of the iMac was to have a friendly Apple computer that was priced for the masses and could do all the basics of computing. The original iMac is just that, your best buddy. But now we have this very fancy computer that is beautiful, and cool, but something I have a hard time justifying my money on. And the eMac isn't nearly as friendly and cool as the original iMac. Personally, I wish they'd kept the ol' iMac and priced her at around $600 with a sweet little 800 mz G3. She'd be getting a lot of switchers is my bet. End rant.
 

alandail

macrumors 6502
Jul 23, 2002
257
0
Ohio
iTMS sales have plenty of ways to grow and not shrink

- the store gets new users everytime someone buys a mac, instals iTunes 4, etc.
- the store gets new demand from users every time a mac user buys an iPod.
- the store adds new music every week

there was an initial surge the first week or so the store opened, then it leveled off to about 500k songs/week. I expect that number to gradually grow.

And then there will be major surges over the next year.

- when it's available to international users
- when the windows iTunes ships

The biggest challenge they have to solve is getting more music up there. There are unexplained gaps where many albums are only partial albums. When you go to buy an album on Amazon, you don't have that problem - the iTMS needs to eliminate that problem too.
 
Er...

Hang on...

Did I just read that 50% of sales went to new Mac users?


Why is nobody going 'Bloody Hell!'

Am I missing something?


Brother Mugga

PS: You can add two more to that total as of tomorrow; sucked in a couple more to the luverlyy world of iMac.

And I'll be 'switching' to a G5 in the New Year.

I know I've said this before.

I just like saying it.

Is that wrong...?
 

NavyIntel007

macrumors 65816
Nov 24, 2002
1,081
0
Tampa, FL
I find the iTMS sales to be great. Think about it this way... In three months, would the CD store that just opened in the mall break even? In a bad economy?

Quite a few stores started selling inventory online during the late 90's at the boom of our economy. They were losing money for years and finally broke even. How long did it take Amazon.com to break even?

I mean we're talking three months on a limited user base (it'd be nice to know the total number of subscribers).

Another statistic that no one has commented on... 50% of mac buyers do not currently own a mac. That is a pretty good statistic. That's 385,500 new mac users in this quarter alone. People are being exposed to the Apple Stores, the ipod, the iTMS, the G5 and the loads of press Apple has been getting in the paper lately. I may be overly optimistic, but I'd say this number could double for next quarter.
 

LucasLand

macrumors 6502a
Mar 6, 2002
756
92
New England
eMac rocks

At first it does sound dissappointing that iMac sales are sluggish, especially since they introduced it to the public in grand fashion compared to the eMac, but I really feel that the eMac is what they should have promoted more to the PC users. I think Apple was too much in love with that flat-panel design.

Personally, I 'm already on my 2nd eMac and I think they are awesome! I recently upgraded to the 1ghz model. It has everything the iMac has except a flat panel. Why would I want to spend hundreds of dollars more just to be able to swing the screen on a metal arm?

I think th iMac got trapped between the eMac and powermac, but now that the G5 exists they can bump up the speed of the g4 iMac as much as they want and it will never conflict with a g5. Let's hope they come out with something like a 1.6ghz G4 iMac for people who want a little more than the eMac, but don't want to invest in a G5.
 

QuiteSure

macrumors 6502
Jun 20, 2002
496
65
Well, I did a terrible thing. I bought a Dell Dimension 2400 for my secretary. Base price $399, added 512 mb ram, updated to XP Professional (so I can run Microsoft Remote Desktop Client) and small business Office.

The good news: the computer works and the Remote Desktop Client product is great; I can now run Windows apps on my OSX desktop.

The bad news: I have this sinking feeling that I should have gotten an eMac. Although the Dimension "boasts" a 2.4 ghz processor, it runs considerably slower than my DP 867 G4. I think in the long run I'll be OK with my Dell purchase because now I can add some windows only software to my law firm (unfortunately, there's lots), but I may have stayed with a mac if there was only a $600 headless G4 box out there.

:confused:

Is there no chance we'll see such a beast anytime soon?
 
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