The Apple is still shining

The Apple is still shining

Summary: Yesterday Apple announced fiscal results for Q3 06, and it looks to be in fine form.

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TOPICS: Apple
11

Yesterday Apple announced fiscal results for Q3 06, and it looks to be in fine form.

Here are some of the highlights:

  • Revenue $4.37 billion, quarterly profits of $472 million
  • Second highest revenue and earnings totals
  • 529,000 desktops and 798,000 notebooks sold during the quarter
  • Intel-based systems accounted for 75% of shipments
  • The iPod accounted for 45% of total revenue over the quarter
  • iTunes accounts for 85% of legal music downloads in the US

It's easy to draw a few broad conclusions from this data:

  • There's obviously a healthy market share to be had targeting users that want style and ease of use
  • The high cost of Mac systems compared to the PC is no barrier to profitability
  • The shift to Intel was a good move
  • Apple's business model is heavily reliant on iPod and iTunes
  • Very healthy notebook sales - Mac is becoming more synonymous with notebooks than desktops

Topic: Apple

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11 comments
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  • Go Apple !!

    Apple's shift to Intel and invigorating the PC and notebook business with cool design will stoke the overall market.

    Look for Apple wannabee's to come out with great industrial design and resurrect competition on home electronics based on common X86 building blocks
    Prognosticator
  • The TV Commercials

    Are definitely working! They are having a strong impact on
    consumers.
    Len Rooney
    • Sure Are.....

      Oh, yes. The ads have convinved me that I should never buy a MacIntosh.
      Crashhawk
      • Just out of curiosity ...

        ... why?
        Adrian Kingsley-Hughes
      • Sorry to hear that

        50% of recent Mac purchases through Apple Stores have been
        made by first time Mac buyers--people who are just fed up with
        Windows. And if you think about it, those people who switch
        make your life better because an increasing Mac market share
        forces Microsoft and its OEMs to finally begin substantially
        improving their products. Keep thinking about that and you'll
        gladly start recommending Mac to all your "less technical"
        friends even if it's not for you.

        The ads are working. Try not to take them too seriously:

        http://www.worth1000.com/emailthis.asp?entry=304440
        Len Rooney
  • Broad Conclusions

    The broad conclusions are a panderance to the Windows IT base
    and the sponsors.

    So what's the message? The message is this. You have to hand it
    to Apple, if it wasn't for brilliant marketing and it's strong base
    of silver spoon dilletants, they'd be toast. They have to thank
    their stars for iPod and mobile warriors. Bless this dearth of
    fashion designers and teen communists who are are driving
    Apple upwards. Aren't they sweet.

    Don't be afraid Windows IT. It's circumstantial. This has nothing
    to do with Vista's absence, years of malware abuse, and
    monopoly maintenance. This is not a technical issue. This is a
    fashion issue.

    A business community that would have been better off with
    command line thin clients, has Apple to blame. They have Apple
    to blame for getting soaked for thousands of Windows seats so
    middle management can play minesweeper. More importantly,
    as some questions start to arise about Microsofts judgement,
    the millions of points of light that are modeled on Redmond's
    image, start to blink out. A system that promised diversity and
    delivered conformity, is under scrutiny.

    Apple doesn't need to win. They just need to be a conspicuous
    and plausible choice. It will do more to keep Microsoft from
    abusing it's position. I can't understand the Windows echo
    chamber. It should stop patting Apple on the head. This IS a
    technical issue. People are switching for performance, stability,
    and ease of use. It accrues to productivity. Business shouldn't
    ignore or diminish it.

    With all the gripes about Windows, why isn't the one genuinely
    constructive suggestion to switch offered.

    Switching is not an option?

    Then I'm talking to the wrong person. Point me to the guy who
    has control.
    Harry Bardal
    • A good point ...

      "People are switching for performance, stability, and ease of use. It accrues to productivity. Business shouldn't ignore or diminish it."

      There are problems down this line - a huge reason why Windows is considered to be unstable is that it has to support pretty much every bit of hardware out there. People want to be able to install all sorts of junk hardware and software on their systems. If Apple go down the route of popularity, I see this as being what awaits them. I think that Apple is doing the right thing and growing at a manageable rate. A huge explosion into the commercial sector would change things.
      Adrian Kingsley-Hughes
  • Still shining?

    Yes, they are doing OK, alright. But the Apple forum is still full of
    people bitching about actual laptop hardware issues that Apple is
    *maybe* going to acknowledge or not. Some IS being dealt with, to
    be fair. When they sort this stuff out in Rev.2 or 3, then the shine is
    sure to come out stronger. Personally, I've seen both sides off-and-
    on for the last 12 years (hinges, motherboards, flaking paint,
    crappy CD drives, exploding batteries, etc), but I'm confident my
    2005 gear is trouble free -- as was my 1998 gear.
    999ad@...
    • Problems plague Apple

      It seems that Apple is plagued by issues that could/should be picked up by the Quality folks. Scale say their MacBook operation to the size of say Dell's notebook distribution and that would be a whole lotta problems.
      Adrian Kingsley-Hughes
      • Dell-scale problems

        Notebooks that explode into flames or just plain melt:

        http://arstechnica.com/news.ars/post/20060721-7325.html

        Besides, if you're going to rag on Apple's notebook quality, it
        would be nice if you could state more than just a broad
        generality. "Plagued by issues" covers a lot of ground.

        As far as I'm aware, Apple's notebooks run a bit hot.
        Uncomfortable for some but certainly nothing life threatining.
        And most customer complaints have centered upon this issue,
        other than that, there's been a few manufacting-related hic ups
        (noisy fans, poorly applied thermal paste, a plastic strip covering
        an air vent). Nothing out of the ordinary for a first rev product
        and Apple is fixing these problems. My advice: always wait for a
        rev2 product ...and keep a fire extiquisher handy if you are
        using a Dell laptop ; )
        Len Rooney
        • Advice endorsed by Apple?

          "My advice: always wait for a
          rev2 product ..."
          Does Apple endorse that advice? :-)
          Adrian Kingsley-Hughes