July 19, 2006 2:04 PM PDT

Mac sales up 12 percent as Apple profits soar

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Apple hoping Mac attack lifts quarterly earnings

July 19, 2006
Apple Computer's third-quarter revenue fell a little short of expectations, but profitability was far higher than expected and Mac sales increased at a healthy clip.

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The Mac is back Chief Financial Officer Peter Oppenheimer credits strong Mac sales with Apple's soaring profits and improved sales.

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Apple for the teacher Educational customers were a key part of Apple's performance in the quarter, says Chief Operating Officer Tim Cook.

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Revenue was $4.37 billion, up 24 percent from last year's quarterly revenue of $3.52 billion. Net income was $472 million, or 54 cents per share, an improvement of 48 percent compared with last year's results of $320 million in net income and 37 cents per share. Analysts surveyed by Thomson First Call had been expecting Apple to report $4.4 billion in revenue and earn 44 cents per share.

Analysts had been worried that Apple's iPod growth had trailed off a bit in the middle of a long stretch without a significant redesign or a new feature added to the product. Apple sold 8.1 million iPods during the quarter, and Piper Jaffray analyst Gene Munster said in a research report earlier Wednesday that anything over 8 million would be a "slight positive."

Mac sales were up 12 percent compared with last year, during what was considered a poor quarter for the PC market. Apple said 75 percent of all Macs sold during the period used Intel's chips.

The outlook for the next period will probably disappoint some investors. The company predicted fourth-quarter revenue would be about $4.5 billion to $4.6 billion, less than the $4.9 billion analysts had been expecting. Apple executives will hold a conference call later Wednesday to discuss results.

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Add a Comment (Log in or register) 54 comments (Showing first 20 comments)
Great, glad to hear it
by rmiecznik July 19, 2006 2:19 PM PDT
Don't own any stock and I don't even work there, but I love what Mac has done to their computers and the OS. I bought a G5 Power Mac for my self, and laptop for my wife and also two iPods.

And we are very happy with our products, enough so to put a big smiling face on the money spent.

I never felt so Rosy with PC OS, Windows. The PC hardware it self there is nothing wrong with it, I run several Linuxes on it, Damn Windows, it's a waste of freaking time.

I don't care what MS does or is promissing, enough wasted time with that crap.
Reply to this comment
Xbox
by rmiecznik July 19, 2006 3:08 PM PDT
I like the Xbox, that is the only product that I liked, and older Office 2003, not the Beta crap that I seen.

I own the old Xbox and the new Xbox 360, and I like them both. But MS OS is total crap! I know people who work at MS and with all the internal stuff and firewall and virus scanner, employee re-load and re-install it all the time, people curse at it.

Don't think that I am some ignorant dude, I know MS.
Reply to this comment View all 3 replies
Nice performance
by bobbymd July 19, 2006 3:26 PM PDT
The introduction of the MacBook during the quarter really
helped to drive Macintosh sales, especially portables. The
underperforming desktop sales can be attributed to those G5
PowerMacs! I'll take the position that there will be a dramatic
increase in Macintosh desktop sales after Apple announces the
Intel based PowerMac replacement.

Furthermore, we should see great unit sale numbers during the
current quarter as education purchases are still kicking in and
we should see a stron 2006 holiday shopping season for Macs.
Reply to this comment View all 3 replies
Why?
by galendw July 19, 2006 3:35 PM PDT
Why is it that, whenever there's an article about Apple (and I know
it must happen with other companies too), the majority of the
comments are either bashing or evangelizing Apple?

Can't we talk about the story folks?!?!
Reply to this comment
Nice...
by Penguinisto July 19, 2006 3:47 PM PDT
Good to see that they're growing well. Meanwhile, Linux keeps growing faster than Windows products, so if the percentages hold for long enough, MSFT will finally be forced to actually do some of that innovation they keep talking about :)
Reply to this comment
The old debate
by thedreaming July 20, 2006 6:54 AM PDT
Let's not start this old debate again. I've worked on both macs and pcs and I've met all kinds of users and for every user that loves his pc, you'll find someone that hates it. You'll also find the same on the mac side.

In the end, the hate of either mac or pc is due to a malfunctioning machine.

When I fix either a mac or a pc, the users fall back in love with their machines again, so IMHO, if you want to be happy with your choice, keep your machine running well.

On the pc side, use a firewall, an antivirus program and scan for adware/malware daily. On the mac side, backup your data at least once a week.
Reply to this comment
Good for Apple.
by July 20, 2006 7:16 AM PDT
Good to see things pick up. Now release the Mac Pro and turn those profits up even more. That's the last
http://www.techknowcafe.com/content/view/603/43/
piece of the puzzle.
Reply to this comment View reply
Guys mac sales went up 12% from last year. No big deal
by Tanjore July 20, 2006 7:56 AM PDT
Article reads

Mac sales were up 12 percent compared with last year, during what was considered a poor quarter for the PC market!!!!

Most people who held buying mac bought macs after Apple released the machines with intel chips ("Apple said 75 percent of all Macs sold during the period used Intel's chips") and this has led to 12% growth!!!

12% growth from last year (when sales were down compared to 2004) is not same as 12% market share!!!

12% mac growth is tiny compared to the pc growth in 2006.

I agree with most that OSX is a better operating system than windows but the numbers are nothing to cheer about in absolute terms. Mac market share has not improved or probably marginally improved.
Reply to this comment
You must not push that pc too hard
by curtegg July 20, 2006 8:04 AM PDT
I typically have at least 30 process intensive apps running
(MatLab, Office stuff, plannning software, etc.) on my mac. I have
yet to see a Windows machine run 12 heavy process apps
simultaneously without having problems.

Let me know how your efficiency of use on the machine goes.

By the way, the one thing that really is nice (its freeware) on the
mac is Quicksilver (3-4 keystrokes to get to any app or data file
on my mac). That is efficient.
Reply to this comment
growth is no big deal
by Tanjore July 20, 2006 8:17 AM PDT
The growth in mac pc sales is 12% compared to what it was last year. Article says that 75% of the machines sold had intel chip => people who held off buying macs because of change in hardware architecture finally bought the macs with intel.

12% growth over last year is not 12% gain in market share. Overall mac market share gain is probably less than 1%.

"According to Gartner, in the second quarter of 2006, Apple sold 766,000 Macs compared to 663,000 in the year-ago period. The company?s market share is now 4.6 percent for the second quarter of 2006 as compared to 4.3 for the second quarter of 2005."

"Again accordng to Gartner
worldwide computer shipments totaled 54.9 million units in the second quarter of 2006, an 11 percent increase from the same period last year, according to preliminary results by the Gartner." - This includes macs.

What mac ships in a year, dell or hp ship the same number in a week or less.

Keeping these numbers aside - I believe mac osx is a decent operating system compared to windows xp sp2.
Reply to this comment View all 4 replies
Question
by Da Phantom July 20, 2006 8:43 AM PDT
Can you upgrade a Mac? I've been a PC user for a long time, but recently the school system I work for as a computer tech) received some iMacs free and I've been hearing the tired old PC vs. Mac thing for a while now.

To me its not really fair to bash one over the other. Granted Mac's probably are more stable...they don't have the virus problems...and they tend to look "cooler" (though I wish they would go back to having the different colors like they did a few years ago...blue is my favorite color).

But...to be fair Microsoft doesn't build any computers. If they actually built a computer I'm 100% sure it would be more stable than they are now. Would they be 100% stable...no...but then again neither are Macs (we've had our Mac lab now for a little over a month...with no kids using them over the summer and we've had to reimage 2 of them already).

Look at all the video, sound, network, usb, tv tuner, and all that jazz cards out there that Windows has to support. If I want to upgrade my PC to a newer video card I just buy one and pop it in. Have I had problems in the past...yep. Not all of its Microsoft fault...it was more crappy vendors not fully testing their drivers. Yeah...Microsoft could really do more to lock system files from being messed with and hopefully Vista will be more stable.

Also, I don't think its fair when Microsoft gets hammered by including their software with Windows. I remember the uproar over Media Player and Internet Explorer being a part of the OS. Can you uninstall items like that on a Mac? Seems Windows would be more stable if they could do things their own way...but people and governments cry foul when Microsoft does this...but from what I've seen no one says a word about Apple.

Like I said...I've been a PC user my whole life. Just now getting to use Mac's...so far I can say Mac's are pretty cool...but for now I'll stick with my PC.

In a few years...I may have to switch...to Linux :)
Reply to this comment View all 4 replies
Comment system all messed up
by Thrudheim July 20, 2006 12:42 PM PDT
There is something seriously wrong with the comment posting
system on this site. I can't say how many times that I get some
error message when trying to post, and lots of other people
apparently do as well. Sometimes the posts go through anyway
(but confusing the person trying to post, who then posts again).
Sometimes they don't go through at all.

Just now, I counted 53 posts, but there are supposed to be 64
comments according to the official count. Probably two of those
missing posts are mine. I got the error message, and the post
never showed up on the board, but the count increased anyway.
Reply to this comment View all 2 replies
your A+ technician, then I am Mickey Mouse
by chris hamilton July 20, 2006 6:14 PM PDT
The Operatings systems are black and white. With os x you get a
secure unix operating system, with Windows xp you get a
operating system built from windows nt 4.0 . You should the
weakness from the two systems. yes, Windows is on 90% of the
computers in the world, doesn't make it the best operating
system. A unix core or linux core has better security than
Microsoft Windows, because it is built that way from the ground
up. Windows has lots of programs and games, and it is on
almost every pc you buy. That said and done, I prefer os x
because of it's reliability and security more than windows. I own
a sony vaio, dell, and a gateway. My mac mini is over a year old,
my kids play on it and it has never crashed. You can't beat that,
and no technician can tell me any better. All my other
computers have crashed at least once, and I do have anti-virus
software, and anti-spyware. So play your game somewhere else.
I just don't believe you.
Reply to this comment
macs or pcs
by yikes31 July 21, 2006 6:42 AM PDT
this question will keep on coming up on every mac posting that I
see so I see no reason why I should not have my two cents
worth.
My wife and I have both been/are IT professionals and have both
used UNIX, windows (from 3.1 to XP SP2) and os X. Both of us
are in agreement that windows is just simply flawed in
comparison.
I have been a substitute teacher in recent years in over fifty
schools, of which only two used Macs. Those were the only two
that did not have networking issues when running half my
classes. They were also relied on more technical support despite
having less PCs than the other schools had macs.
So as a personal computer user and as a professional, the mac
far outweighs the PC and the increase in sales of the Mac reflects
this. According to the story, fifty percent of people who bought
macs were new users who had never bought one before.
If for some reason, I decided to switch away from macs for some
reason in the future, it would not be back to windows. It would
be to Linux or UNIX. Windows have had a decade and have
consistently proved themselves to provide less than adequate
operating systems.
Reply to this comment
easy macs
by gnarlyolsen July 21, 2006 2:20 PM PDT
I bin usin a mac kumputer naow fer nigh onter seben yeers. I
ain?t no teckie an I doan want ter be one. Butt, the reason my
awfice naow uses all macs iz kinda innerestin.

Yoo cee, wee ud uster have a buncha pc?s and thay mostly did
ok, xcept wen thay didn?t. I mean lak thay wud crash an cease
upp sorta offen and sech lak, jist wen yoo needed them the
mostest. Wee cud lib wid that mostly and eben aloosin the dayta
sumptimes. Butt, the neckworking wuz a nitemare. Wee had da
latest in rooters an switches and sech lak, but aboaut too ore
free thimes a weak things ud quit awerkin fer us?ns. I payd
more per weak ter hab tha teckies kum out?n an git thangs ter
werkin agin than I?se pay?n fer my 2nd gurlfren?s aparrtmint.

Sumboddy tole us?ns to go aout and git a mac and I done that -
I?s tha boss you cee. At first hit wuz kinda strange ta use butt
onct I got the hang ob hit I lakked hit purty much. In fackt, I
lakked hit so much I went aout and bougth a cupple moore. I
found aout that yoo could jist plug them succers tergether and
thay?d light right awf and see one annudder. Then I deesided to
git a few moore fer the awfice and got aourselbs a rooter to
hook em tergether.

Thangs werked slicker?n a-slyden a greesy strang out?n a cat?s
rare orafice. Wee nebber had tha 1st hardware problum, nebber
onct. At 1st wee did hab sum kumpatibility problums wid
applikatiuns inneracktin wid tha pc wurld butt nuttin wee cudn?t
hanndle. Thangs wuz awerkin so slick and so gud I got ridd of
all the pc?s wee had. I gave em away in fackt jist ter git em
aoughten the awfice! Wee hab not had the teckies out ter doo a
darrned thang cince abaout 1999 wen we switched ober. In
fackt, I myselbf duz all tha teckie stuff needed in aour awfice -
wee?se a-runnin abaout tin macheens. I no dats right bekawse
dats az hye az I kin caount.

Naow ob coarse wid tha dual prosesser macs yoo kin runn any
dammmned thang yoo wanter on doz.. No problums, no haow.
An, thay?s awlways mostly plug an play - jist plug yer stuff in
and tha kumputer cees hit and taykes awf. Hit don?t knead
know dribers nair nothin.

Naow I ain?t got know axt ta grind on kumputer makes and sech
lak, butt yoo cudn?t git me to go bakk too pc?s fer know
amaount ob monney deze days. Tha onliest thang I wurry
abaout is that dose mac macheens wil git so poplar that
ebberboddy?s gonna went em and dribe tha dang prizes up skye
hye.

Ennyways, cince wee switched to macs I bin able ter afford my
3rd gurlfren easy, know problum.
Reply to this comment
Worldwide Market Share Is Lower
by john55440 July 21, 2006 5:17 PM PDT
According to IDC, Apple's Q2 2006 worldwide market share is somewhere below that of (who?) Fujitsu/Fujitsu Siemens.
Reply to this comment
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