Log in

Apple Posts Shiny Q2

26 Apr, 2007 By: Jessica Wolf

Spring has been good to Apple.

The company had its best March quarter ever this year. For the fiscal quarter ended March 31, the company posted $770 million in net profit from $5.26 billion in revenue, up from 2006 second-quarter profit of $410 million and $4.36 billion revenue.

IPod shipments grew 24% year-over-year to 10.5 million iPods. Apple shipped 1.5 million Macintosh computers in the quarter, up 36% over 2006.

The company does not break out iPod sales between device offerings, but in an earnings call Thursday, executives said iPod sales in the quarter were driven strongly by sales of the new, multicolored and low-priced iPod shuffle.

Execs declined to offer specifics on how the Apple TV launch is going. The first of these wireless set top devices shipped at the end of March.

“We're off to a very good start,” said Tim Cook, Apple COO. “We are going to continue investing in this area and we are very excited about the long-term potential.”

Apple also declined to release new information on iTunes downloads, sticking by previously announced figures of 2.5 billion songs sold, 50 million TV shows and 1.3 million movies.

iTunes now has 350 TV shows and 500 movies in its video download catalog, said Peter Oppenheimer, Apple SVP and CFO.

Download sales at the iTunes store only made up 44% of earnings for the quarter, Oppenheimer said. The bulk of the company's revenue comes from the sale of Mac products, such as the iPod, which crossed its 100 millionth unit sold early this month.

Oppenheimer declined to speculate on what kind of earnings impact might hold for iTunes should more record labels join EMI and sign on with Apple to provide upgraded DRM-free tracks for a $.29 up charge.

“We've always sought to operate iTunes as a break-even business using downloads of music and now video to drive the sale of iPods,” he said.

The iPhone will ship as scheduled at the end of June, executives said, available for purchase in the Unites States at Apple stores, Apple.com and AT&T Cingular sites and stores exclusively.

Add Comment