Apple Grows With iPod Sales20 Apr, 2006 By: Jessica Wolf
Apple remains on a growth curve, with quarterly earnings again boosted by the popularity of the iPod and sales at the iTunes music store.
The company Thursday reported year-over-year revenue growth of 34%, to $4.36 billion, and net quarterly profit growth of 41%, to $410 million, for the fiscal second quarter ended April 1.
Apple shipped 8.5 million iPods to the market in the quarter, down from more than 11 million units the previous quarter, but up 61% from the prior-year second quarter.
Sales of music-related products and services, which includes downloads from the iTunes online store, were up 125% year-over-year to reach $485 million, down only slightly (1%) from the first quarter.
The iTunes store now offers 70 different TV shows for download and 900 music videos, company executives said in an earnings call April 20.
About half of Apple's business now comes from music-related product, they said, and that segment of the company has grown 79% in the last year.
The iTunes store hit its one-billionth music download in March and the service represents 87% of the legitimate download market, Apple execs said.
Apple executives also said there is growth in store for the iPod, especially in markets outside the U.S.
There is increased interest from the automotive industry in manufacturing cars enabled for iPod playback, executives said, noting that 40 percent of new cars this year will come factory installed with direct iPod integration devices.