Apple Q2 Financial Results Conference Call

MacRumors

macrumors bot
Original poster
Apr 12, 2001
7,457
8,520


Apple is webcasting their Q2 2005 Financial Results conference call now

Conference Call Highlights

- Peter Oppenheimer: Highest March quarter revenue and net quarter income in Apple's history. Strong sales of Macs and iPods.
- Strong revenue growth, higher than expected gross margins (29%)
- Mac 62% of total revenue. Up 27%.
- 1,070,000 Macintoshes shipped
- 608,000 Desktops (up 55%)
- iMac G5, eMac, MacMini's 467,000
- PowerMacs141,000
- Portables 462,000
- 251,000 iBooks
- 211,000 PowerBooks
- Music Business - 38% of total Apple revenue.
- Shipped 5.3 million iPods during the Quarter
- New iPod Shuffle and new iPod Mini's
- Feb Data. #1 in the Flash MP3 margin. 43% market share in Flash.
- Now over 350 million songs sold on iTunes
- Retail growth
- Education Channel.
- Growth in Cash
- Next quarter will stop reporting CPU sales by product family, but instead in broad categories. Desktops and Portables to bring into line with detail in their music reporting as well as their competitors

Q&A Session

Q on supply/demand on iPods at this point across geographical regions. A: feel they reached a supply/demand balance by end of quarter
- Q: Pent up demand for Macs into this Q2 waiting for Tiger? A: Difficult to predict.
- Q: New Mac users in Retail? A: Low to mid-40% range. sales quite strong.
- Q: iPod gross Margins A: Overall line margin was a little above 20% in the Quarter
- Q: How many Mac Mini's sold? A: We're not going to do that for competitive reasons. Very pleased with customer response and sales.
- Q: Last conference call, mentioned that putting a G5 in a PowerBook would be a significant technical challenge. A: Still think it's the "mother of all" thermal challenges.
- Q: Question about future products on the magnitude of the iPod in the future? A: Can't answer that question.
- Q: MacMini and Best Buy and targets. Also we're expecting a refresh coming for PowerMacs. Thoughts about PowerMac and sales? A: Did ship some units to Best Buy at the beginning of April. On the PowerMac, the PowerMac is largely driven by our Pro business. Continue to see a desktop migration to mobile, however, the PowerMac continues to be a very important part of our lineup for many of our customers. Obviously we'll continue to announce great things w/ respect to the PowerMac.
- HP iPod sales made up less than 3% of iPod sales.
- Q: iTunes profits? A: A little above break even
- Hard Drive based marketshare 90%
- Flash based 43% (0% to 43% in the month of availability)
- 70% overall market share for Feb. Up from December Quarter
 

Lacero

macrumors 604
Jan 20, 2005
6,639
2
Jan 2005, Apple introduces a low-cost computer, after users repeatedly ask and ask, Q2 profits rises to a record-high.

Jan 2006, Apple introduces a 2-button mouse for all their computers, after users repeatedly ask and ask, Q2 profits skyrocket 1,000%.

Jan 2007, Apple finally wises up, and releases OSX for PCs, thereby gaining the lead from Microsoft, Q2 profits reach $10 billion.
 

quagmire

macrumors 603
Apr 19, 2004
6,255
1,063
Wonder how the shuffle affected the overall market share of the iPod. It was 65% before shuffle right?
 

Freg3000

macrumors 68000
Sep 22, 2002
1,914
0
New York
This is surprising...in June Apple will only announce CPU sales in two categories, desktops and portables. No more iMac/eMac/Mac mini, PowerMac, Powerbook, iBook breakdown. Hmmmm...
 

narco

macrumors 65816
Dec 9, 2003
1,155
0
California.
Now all we need to top it off is another journalist to predict Apple's demise if they don't share OS X with PC manufacturers, or open the iTunes store to be compatible with other players. I'll keep my eye out on macbytes.com.

Fishes,
narco.
 

Peyote

macrumors 6502a
Apr 11, 2002
760
0
auxplage said:
I listened to the report, and Apple said they are going to stop reporting Mac sales by family and instead by either "desktop" or "portable".

Lame...

Prolly brought on by embarrassing PM sales.
 

SiliconAddict

macrumors 603
Jun 19, 2003
5,889
0
Chicago, IL
Excellent. Looks like PowerBook sales fell. Didn’t tank as I hoped but it looks like the band-aid release a couple months ago was enough to keep it from being a complete gusher. Hopefully this is putting more pressure on Apple to put out a REAL PowerBook update. Then again I keep hearing P. T. Barnum's famous quote ringing in my ears since that update. Is my post harsh? Yes but so it Apple's PowerBook offerings so I call it even.
 

hexcalibur

macrumors member
Jun 19, 2003
57
6
Vancouver
the mystery of wall street

javabear90 said:
whoohoo my stocks goin up tonight!!!
Or not. Mac sales up, margins up, profit up, ipod sales frickin' insanely up, and...stock drops over 2 bucks a share.

This is why I keep my money in a shoebox under the bed.
 

CalfCanuck

macrumors 6502a
Nov 17, 2003
551
0
Great news for the Mac platform!

Even though many here are tired of "iPod news", it's now 38% of revenue and is strengthening the company. Let's wait a few years to see how many switchers come on board.

And I'm loving the Mac mini sales - higher units shipments help subsidize the cost of ongoing development of OS X - we all benefit.
 

quagmire

macrumors 603
Apr 19, 2004
6,255
1,063
SiliconAddict said:
Excellent. Looks like PowerBook sales fell. Didn’t tank as I hoped but it looks like the band-aid release a couple months ago was enough to keep it from being a complete gusher. Hopefully this is putting more pressure on Apple to put out a REAL PowerBook update. Then again I keep hearing P. T. Barnum's famous quote ringing in my ears since that update. Is my post harsh? Yes but so it Apple's PowerBook offerings so I call it even.
Actually, Powerbooks sales went up. iBooks fell a bit. Here is Q1.

Code:
Product     Units k   Rev $m
iMac          456        620
iBook         271        297
PM            167        381
PB            152        307
iPod         4580       1211
Other                    674
----------------------------
                        3490
 

BornAgainMac

macrumors 603
Feb 4, 2004
6,352
3,215
Florida Resident
Will Apple come out with a "fake" Powermac update or do something really good this year for the update. It's been 2 years now. The update last year wasn't so special.
 

runninmac

macrumors 65816
Jan 20, 2005
1,495
0
Rockford MI
Wow this is interesting i couldnt tell listening but i think he changed his mind saying that it is not the mother of all thermal challenges but i could be wrong. Either way this is interesting to listen to.

ok i diffenitly herd that wrong.
 

SiliconAddict

macrumors 603
Jun 19, 2003
5,889
0
Chicago, IL
Peyote said:
Lame...

Prolly brought on by embarrassing PM sales.
Probably brought on by the fact that they can cover ANY embarrassing results with a blanket statement. PowerMac sales can be covered as can PowerBook sales. This can be attributed to Apple being almost incapable of updating multiple products at the same time leaving some of them to rot on the vine. By doing this they can get away from the market bitching about bad e-Mac, PowerMac, iBook, PowerBook sales. So they update PowerMacs and iMacs take a hit for being out there X time without an update and it makes it look like the status quo or better is being maintained. Even though a product in its line is getting thrashed. Its marketing spin is all it is. Similar to Jobs’s RDF but at a lower level.
 

rockthecasbah

macrumors 68020
Apr 12, 2005
2,395
2
Moorestown, NJ
i don't really know...

Lacero said:
Jan 2007, Apple finally wises up, and releases OSX for PCs, thereby gaining the lead from Microsoft, Q2 profits reach $10 billion.
Wises up? That to me is a terrible move. Don't get me wrong, broadening Apple's reach is great and all, but the majority of their revenue is from moving the software WITH the computer. Remove the machines, and you aren't looking at such a big profit...
 

macridah

macrumors 6502a
Feb 18, 2004
868
0
Nor-Cal
Good numbers, I'm happy. I wonder why the stock went down after hours.

Now tiger is up, mac sales will increase next quarter ... that's a safe bet.

Good job, again ... hopefully it gets even better!!!!
 

SiliconAddict

macrumors 603
Jun 19, 2003
5,889
0
Chicago, IL
quagmire said:
Actually, Powerbooks sales went up. iBooks fell a bit. Here is Q1.

Code:
Product     Units k   Rev $m
iMac          456        620
iBook         271        297
PM            167        381
PB            152        307
iPod         4580       1211
Other                    674
----------------------------
                        3490



http://biz.yahoo.com/prnews/050112/sfw092_1.html

Read the wrong results...4th quarter of last year. So its true. :( There's a idiot born every minute.
I'm happy the other numbers are strong but PowerBooks I'm sorry...stupid. Just stupid. Apple should throw in a LCD glass wipe. Watch sales go up 30%. OMG OMG it’s a glass cleaner. :rolleyes: *sighs*
 

MacG

macrumors member
Jul 13, 2004
78
0
macridah said:
Good numbers, I'm happy. I wonder why the stock went down after hours.

Now tiger is up, mac sales will increase next quarter ... that's a safe bet.

Good job, again ... hopefully it gets even better!!!!
Guiding down from this quarter would be my guess.