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July 25, 2007 12:00 AM

Apple's Mac Makes Strong Market Share Gains in Quarter

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After years of false starts, the Apple "Switch" campaign appears to be finally paying off: In the latest quarter, the company's Macintosh computers garnered almost 3 percent of the worldwide PC market for the first time in a decade and exceeded 5 percent in the US. Apple sold 1.764 million Macs in the quarter, representing growth of 33 percent year over year. Overall, the PC market grew just 12 percent in the quarter.

Apple earned a profit of profit of $818 million on revenues of $5.41 billion in the quarter. This represents a sharp increase in earnings from the same quarter a year earlier, when Apple posted a profit of $472 million on revenues of $4.37 billion. Gross margins were an outrageous 36.9 percent.

"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Apple CEO Steve Jobs, noting that the company sold 150,000 more Macs in the quarter than it did in its previous best-selling quarter.

Apple also sold 9.8 million iPods in what is traditionally a slow selling period for the company's consumer electronics devices. This is up 21 percent from the same quarter a year ago, when Apple sold 8.1 iPods.

Apple was relatively quiet about the heavily hyped iPhone, which went on sale just two days before the quarter ended and got off to a rough start on that opening weekend thanks to technical glitches. Tuesday, wireless carrier AT&T announced that customers activated just 145,000 iPhones first two days of sales, far below analysts estimates, which went as high as 700,000 units. According to Apple, it actually shipped 270,000 iPhones in the period (not all were sold to customers), still well below estimates. But that figure suggests that perhaps half of all initial iPhone customers--who paid an average of $585 for the device, including fees but not including a two-year contract--were unable to use their devices for about 24 hours when they brought them home. Apple apologized for the snafu and said that the activation system had been since fixed.

The company did, however, say iPhone sales are on track. The company expects to sell 1million iPhones by the end of the current quarter and 10 million by the end of 2008. "iPhone is off to a great start," Jobs noted.

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Comments
  • Joe
    5 years ago
    Jul 28, 2007

    "OS X is the same OS on both PPC and X86 platforms"

    ....just not nearly as fast on one as one the other. i seem to remember that Mackie's like to criticize Windows Vista performance on low-end machines (ie. Celeron's and P4's) with little memory (512MB), when Leopard hasn't even released yet and yet Apple is telling partner stores to recommend the same system configuration as most PC OEM's are recommending for Windows Vista - a Core 2 Duo with AT LEAST 1GB of RAM (but 2GB is preferred).

    i can say that without a doubt there will be G3 users with 512MB saying that OS X "runs fine", wherein they don't believe that Windows Vista is just as capable just meeting the low requirements on older P4 systems (Hyperthreading actually gives Vista a huge efficiency boost too).

    there was an article i read on ZDNet a couple weeks ago about Windows Vista Home Basic on such a system, but i can't find the article now (little help?)

    XP

  • Bryan
    5 years ago
    Jul 28, 2007

    Sub:

    Were you, by any chance, one of those people who, when the iPod launched said, "But it doesn't even do FM Radio! And you can't swap out the battery! And it only syncs with iTunes! And it sucks! My creative player can do so much more!"

    Yes. Yes I think you were.


    And secondly, how does having an Intel chip inside make OS X "much better"? Nothing actually changed - OS X is the same OS on both PPC and X86 platforms. And yes, there are vulnerabilities in OS X, but none of them are being exploited.

    So, Sub, what the hell is your point?

  • subzerohitman721
    5 years ago
    Jul 27, 2007

    Well its about damn time Apple did something with actual computer sales. With Apple so far behind, it had no choice but to come up. But I don't know whether to laugh or shake my head. Vista has essentially assimilated OS-X and has basically rendered Apple Macintosh's obsolete. I'd be more excited about a new Linux suite before I get excited about Apple do anything with their computers.

    I can see why Verizon decided to pass on IPhone. The battery issue was an obvious "Here's Your Sign" moment. All quality cell phones have interchangeable batteries. If it can't support 3G, I seriously doubt IPhone would have been EV-DO capable by launch. The blairing security vunerabilities and multiple hacks shows just like OS-X, anything made by man can be destroyed. No keyboard for text messages was an obvious, "Dee-Dee-Dee!" Other features that are not present on IPhone just made Verizon stay with proven makers of cell phones. Eventually they'll come out with a phone that makes IPhone look like ICrap.

    But I will give them credit, the Intel switch was 15 years overdue. It has breeded much better hardware and in return the OS is much better. However, the number of vunerabilities are raising. Its not as invunerable as Apple or the Mac boys want everyone to believe. Again, where that OS-X PC edition, Apple?

  • Bryan
    5 years ago
    Jul 27, 2007

    You know, I have been absent a while. And I can see exactly why in this comment thread.

    Apple had a really good quarter. The Mac is growing, the iPhone sold well in two days, but, with a few exceptions, all you guys have are more insults. No one, not even you Tayme (who I usually think of as more mature than others), could muster up a simple, "Yep, let's give them some credit - they did well."

    It's the same ol' stuff. If you're read one of these threads you've read them all. They're all about Apple. Which, quite frankly, says more than any market share figure or quarterly results sheet ever could.

  • Joe
    5 years ago
    Jul 26, 2007

    "this should make cable internet finally boost their bandwidth as well"

    currently i get pretty close to 7Mbps down, 450Kbps up (technically it's supposed to be 384Kbps, but most speed tests don't say that) for about $47CDN with a 60GB/mth bandwidth cap on Rogers Cable. DOCSIS 2.0 (which is what they currently use) is supposed to support 40Mbps down and 10Mbps up. there is no fiber optic consumer-level internet service in Canada yet on the open market, although they may be testing it in undisclosed locations. IPTV is supposed to be "coming soon" with this service as part of Bell Canada's partnership with Microsoft, but from several Bell tech's (not that that means much), it's supposed to be 25Mbps, so who knows at this point. all i know is that my 7Mbps is still better than Bell's 3Mbps aDSL that i switched from for the same amount of money - and i'm not in a major urban center either.

    XP

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