Apple Posts $546 Million Profit

[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.

 

[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 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?????

 

[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 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...

 

[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.

 

[Timo_Existencia]

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...

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 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...

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.

 

[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.

 

[DeepIn2U]

Grumpy Old Men Complaining.

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.