No surprise, this quarter was Apple's best March quarter ever. Here are the bits that matter—2.29 million Macs shipped, 51 percent more than same time last year, so Mac sales are booming. iPod sales are actually pretty flat from last year, up a meager one percent—are we at the saturation point? And 1.7 million iPhones, obviously down from a couple a months ago, when it was all Christmas boom, but not bad considering we're at the point where people are going to start waiting for the 3G iPhone. Read the whole thing below, but they still won't comment on their big purchase from last night. We'll be in on the call for more details in about 20 minutes, updating it live.
Even though iPod sales are essentially flat, revenue is up, due to iPod touch (more expensive, and they don't break down sales by iPod type, plus shuffle got cheaper). They're definitely the music industry juggernaut to topple: Apple owns 73 percent of portable music player market and iTunes has 85 percent of market for legally purchased music. No numbers on movie rentals.
Macs' growth was three and a half times the PC growth rate in March. Desktop sales up 37 percent from last year but notebooks are where the money is: portable sales up 61 percent from last year. 50 percent of retail buyers new to Mac.
Still expecting to sell 10 million iPhones by end of the year. Analyst tries loopy-loop endrun question about lower iPhone supply and declining sales to get them to admit new 3G iPhone, Apple replies (repeatedly to not-so-sneaky iPhone questions trying to get 3G hints) they're still confident they can hit 10 million. Interestingly, they're not counting any iPhone revenue from units sold after SDK announcement until 2.0 firmware launches in June—maybe indicates they don't think people will buy iPhone until 3G launches?
Okay famed Gene Munster gets them to have to launch into their own long loopy answer about why they're delaying revenue reporting on iPhone when the 2.0 update is free. Seems obvious it has little to do with software. Follow up, another analyst asks about keeping 2.5G iPhone after 3G iPhone out, gets totally shot down.
CUPERTINO, California—April 23, 2008—Apple® today announced financial results for its fiscal 2008 second quarter ended March 29, 2008. The Company posted revenue of $7.51 billion and net quarterly profit of $1.05 billion, or $1.16 per diluted share. These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter's revenue.
Apple shipped 2,289,000 Macintosh® computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The Company sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 1,703,000.
"We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."
"We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00."
Apple will provide live streaming of its Q2 2008 financial results conference call utilizing QuickTime®, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, April 23, 2008 at www.apple.com/quicktime/qtv/earningsq208/ and will also be available for replay.