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Apple's 3rd Quarter 2006 Financial Results

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Apr 12, 2001
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Apple posted their 3rd Quarter 2006 financial results today.

Apple posted revenue of $4.37 billion and a net quarterly profit of $472 million or $.54 per diluted share. For reference, the year-ago quarter brought in $3.53 billion in revenue, net profit of $320 million or $.37 per diluted share.

Apple shipped 1,327,000 Macintosh computers and 8,111,000 iPods during this quarter which represents a 12% growth in Macs and 32% growth in iPods year-over-year.

- 75% of Macs sold during the quarter used Intel processors.
- 2nd highest quarterly sales and earnings in Apple's history
- International sales accounted for 39 percent of the quarter’s revenue.
- iPod continued to earn a US market share of over 75 percent
- Desktops: 529,000, down 14% from previous quarter
- Portables: 798,000, up 60% from previous quarter
- iPods: 8,526,000


Live streaming of the results conference call will be broadcast at 5pm EST.

Updates:

- Mac: 55% of revenue. Increased sales to 1.327 million.
-- Pleased with Intel transition. "Solidly" on track to update Xserve and PowerMac by end of this year.
-- Over 2900 Universal Applications.
-- Most "critical" applications will be converted by September
-- MacBook very well received
-- Happy with the Mac ad campaign, feel that it is contributing to Apple's momentum
- iPod
-- NPD: 75% of market share US (MP3)
-- Other music product revenue up 90% year over year
-- Strong sales of iTunes and iPod accesories
-- iTunes Music Store - 85% marketshare.
-- Enthusiastic about upcoming iTunes/iPod products in the pipeline
- Retail
-- 146 stores open during quarter.
-- 50% of buyers are new to Mac.
- Outlook:
-- "Very excited about and confident in the products in our pipeline."

Q&A

Q: How important is it to hit the holiday season. and how innovative can innovative be [w/ respect to iPods]?
A: We don't talk about unannounced products, but "very confident" in products in our pipeline.

Q: Markets: Consumer, Education, Pro
A: The MacBook was in high demand in both consumer and education. Pro market has been slow - thought to be due to wait in PowerMac with Intel and some Universal apps. Education market did very well. Higher edu grew 31% year to year. Very well poised in going into school season.

Q: Assuming any contribution from Leopard for the September [next] quarter?
A: We've not announced the ship date for Leopard, but will show the new features at WWDC.

Q: Does the fact that Intel rolls our processors more quickly and drops prices affect you? Will you be adjusting prices more frequently or same as you have been with new product releases?
A: We're very pleased to be working with Intel. A great partner. They have the best processor by far in our current and upcoming products. Pleased with the new products, but as you know we don't discuss our unannounced products. don't want to comment on how we'll be changing our pricing.

Q: Will there be any surprises at WWDC?
A: [Laughter, then Openheimer:] Well, you will have to come and attend.


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Article Link
https://www.macrumors.com/2006/07/19/apples-3rd-quarter-2006-financial-results/
This is excellent. iPod sales are slowing down however this is to be expected. Nice to see the Mac sales well above the million mark.
 
Impressive numbers! :D Intel Mac sales are actually higher than I thought they'd be. And of course, the iPod is the leader once again.
 
Those analysts really need to do their homework. They brought Apple's stock down because of their negativity. Since they were wrong I think the analysts need to reimburse shareholders for lost money :).
 
macidiot said:
What, the analysts weren't even close? I'm shocked. :rolleyes:
Click to expand...

Actually, the analysts were pretty close this time, except for the profit margins. I'm thinking that the fact that the iPod is now using older parts (therefore cheaper parts) is pushing the cost down for Apple, and hence really making it a big cash cow and driving up the profit margin, even if they aren't selling quite as many as last quarter (which also has to do with seasonal decline).

Edit: oops... it appears as though the analysts definitely did blow the whole revenue expectation a bit. Missed that.
 
one of these days when I have enough money (hopefully by around Aug. 7th) I will be able to buy a mac and become part of those stats.
 
Incorrect analysts' expectation for revenue

Analysts' expectation of $3.68B revenue is incorrect. Apple exceeded income expectations by 10c per share and was in line with revenue expectation of about $4.4B.
 
Where are all you "Apple is doomed" sayers now?:p :D

Apples sells ~4 Million Macs per quater. That's ~16 Mio a year. Given a 4 Year Life time that's "only" ~64 Mio Mac's installed, maybe more. That should be enough to keep developers happy.

So ADOBE, release those f#$%ing universal binaries NOW!!!!
 
im_to_hyper said:
Other than recently, how often have Mac sales been in the million+ a quarter? Didn't 2002 or something only see that many shipped the entire year?
Click to expand...
No - according to http://www.pegasus3d.com/total_share.html Mac sales have been above 3 million since 1998. But it looks like Apple's on track for > 5 million in 2006, the highest sales figures ever.

andiwm2003 said:
Where are all you "Apple is doomed" sayers now?:p :D

Apples sells ~4 Million Macs per quater. That's ~16 Mio a year. Given a 4 Year Life time that's "only" ~64 Mio Mac's installed, maybe more. That should be enough to keep developers happy.
Click to expand...
No, please re-read the figures - it's 1.327 million Macs for the last quarter.
 
Nice to see the mothership sailing smoothly. What do you reckon for the Christmas quarter? Is 2 million Macs possible?
 
I think iPod and Mac sales volume was towards the high end of the range of analysts' predictions. iPod and Mac sales volume is a more important indicator than revenue, I think.
 
longofest said:
Actually, the analysts were pretty close this time, except for the profit margins. I'm thinking that the fact that the iPod is now using older parts (therefore cheaper parts) is pushing the cost down for Apple, and hence really making it a big cash cow and driving up the profit margin, even if they aren't selling quite as many as last quarter (which also has to do with seasonal decline).

Edit: oops... it appears as though the analysts definitely did blow the whole revenue expectation a bit. Missed that.
Click to expand...

Actually, they were completely off base with their Mac estimates. Since it appears that most people on Wall St. think that Apple only makes iPods, this is no surprise.

Most estimates were for around 1 million Macs sold. Apple came in at 1.3 million. There's the margin difference right there.
 
macidiot said:
Actually, they were completely off base with their Mac estimates. Since it appears that most people on Wall St. think that Apple only makes iPods, this is no surprise.

Most estimates were for around 1 million Macs sold. Apple came in at 1.3 million. There's the margin difference right there.
Click to expand...

This is what page 1 reported a couple days ago:

They predict Apple sales results that are close to but slightly lower than the Wall Street consensus estimates, with iPod quarterly sales between 7.7 and 8.3 million units, Mac sales of 1.2 to 1.23 million units, and revenue of $4.6 billion and $0.48 earnings per share, compared to Wall Street estimates for revenue of $4.95 billion and $0.52 earnings per share.
Click to expand...
 
andiwm2003 said:
Where are all you "Apple is doomed" sayers now?:p :D

Apples sells ~4 Million Macs per quater. That's ~16 Mio a year. Given a 4 Year Life time that's "only" ~64 Mio Mac's installed, maybe more. That should be enough to keep developers happy.

So ADOBE, release those f#$%ing universal binaries NOW!!!!
Click to expand...

Huh? Apple doesn't come close to selling 4 million Macs per quarter! They sold just above 1.3 million this quarter.
 
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