Truth about Apple’s earnings

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The Stalwart says that had it not been for 12% more shares outstanding, Apple would have much better earnings growth. “Net income grew 532% while diluted EPS *only* 482%,” he says. In addition, he points out that while iPod unit shipments are rising, the iPod revenue/unit is falling fast, but still revenue is up a lot. (16% unit growth with 9% revenue growth.) In other words lower priced models iPod Shuffles and Minis are beginning to outpace larger devices, and of course this might be an indication that people really don’t want 60GB iPods.

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Sam Sugar

I think the problem Apple’s had selling 60 gig iPod’s in nothing to do with their capacity making them redundant. I have bought one and can’t get my (entirely legal and paid for) collection of tunes into the device. I need at least 30-40 gigs more and many times that for lossless audio (which I’d appreciate – there is a difference).

The problem with the Photo’s was price. $600 is utterly insane. More than a Mac Mini and many, many other small PC’s.

I love Apple but they push their pricing hard and the ‘Photo’ functionality they pushed was poorly implimented and unwanted. Video pods will be able to command a premium but I doubt the strength of the market about $500 for portables – it’s too small a niche.

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