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Apple reports financial results: Mac and iPhone doing great, iPod dying

Yesterday Apple announced their third quarter results. Let’s look at some of the highlights:

  • Revenue of $8.34 billion.
  • Net quarterly profit of $1.23 billion.
  • Gross margin was 36.3 percent, up from 34.8 percent in the year-ago quarter.
  • International sales accounted for 44 percent of the quarter’s revenue.
  • Apple sold 2.6 million Macintosh computers during the quarter.
  • That’s a four percent unit increase over the year-ago quarter.
  • Apple sold 10.2 million iPods during the quarter.
  • That’s a seven percent unit decline from the year-ago quarter.
  • They sold 5.2 million iPhones (all models together), representing 626 percent unit growth over the year-ago quarter.

The two really interesting parts of this are that Mac sales are increasing, much in contrast to many pundit’s forecasts, and iPhone is making a killing, especially, it seems, the iPhone 3GS. Although Apple did not separate the iPhone sales figures for the different models, it seems fairly safe to say that the 3GS is doing very well.

The other thing is that the iPod, at least as we’ve come to know it, is dying. It seems more certain than ever that the iPod will more or less become only the “iPod” icon on the screen of the iPhone. If the rumor is true that Apple will put a camera in the iPod touch it’ll probably survive and I think it makes sense for Apple to keep the touch anyway as many people are not interested in the phone aspect of iPhone.

But the iPod classic is on its way out, next quarterly statement might possibly the last it’s included in. I think the future of the nano and the shuffle are also uncertain but a bit more safe than the classic as they are different products alltogether. However, I wouldn’t be surprised if they merged into one product or that one is discontinued in favor of the other.

I’m sure come September we’ll find out more about what the future is for Apple’s iPod. That’s the time Apple typically have some announcements and special events.

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Filed Under: News

  • I'm sure the iPod has some internal competitors and it still sells really well. Not sure if everyone would want to have an iPhone but they surely want to have an iPod, it's just so awesome. In some news there are reports that a camera may be added to the iPod Nano and given that both the iPhone and iPod Touch are just 32GB max on storage it still wants me to buy a 120GB iPod if I have a lot of music and videos.

    I think the iPod is now more in it's own product category of music players and distinguishes clearly from the other touch based alternatives.
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