The numbers are mind-boggling: Apple shipped 6,155,000 iPods in 3Q05, up 616 percent over the same quarter in 2004. Mac shipments were up 35 percent but the iPod’s contribution to Apple’s bottom line continues to grow — reinforcing Apple’s status as market leader but also the concerns the company might face when sales mature, the increases are less dramatic and other devices gain share.
On the earnings front, Apple posted a 3Q05 net profit of $320 million, up 425 percent from 3Q04, and revenue of $3.62 billion, up 75 percent from the year-ago quarter. More than one-third — 39 percent — of the revenue came from international sales. Gross margin moved up slightly to 29.7 percent from 27.8 percent in 3Q04.
Press release.
Steve Jobs, CEO: “We are delighted to report Apple’s best quarter ever in both revenue and earnings.”
More to come.
Update: Reuters: Jim Fisher, portfolio manager at Univest Wealth Management: “It looks very solid. …The thing that stands out for me is the iPod shipments, which were 1 million more than what the street was anticipating.”
Dow Jones/Smart Money: CFO Peter Oppenheimer told Dow Jones Newswires that sales of iPods are translating into sales of its MAC computers; also that Apple finished the quarter within its target for inventory. (Remember, that number above is for units shipped, not sold.)
CNBC: Squawk Box is asking for votes about whether iPod sales have peaked.
TMO: “Apple’s Other Music Products category, which includes sales at the iTunes Music Store as well as revenue derived from iPod-related services and accessories, saw $243 million revenue, up 12% sequentially and 230% year-over-year, showing how the iPod’s ever-growing sales have made a major impact in that area.”
Business Week: After you read the earnings coverage, check out this preview. Yes, iPod is providing a halo for some other products but “come January, 2006, Apple investors had best beware. With every passing quarter, the company that set the music world on fire with the iPod is in greater need of an encore, most analysts who cover the company believe.”
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