Apple's Mac Makes Strong Market Share Gains in Quarter

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.

End of Article

"This is up 21 percent from the same quarter a year ago, when Apple sold 8.1 iPods."

That poor soul who bought 1/10th of an iPod... sad really.

will84 July 25, 2007 (Article Rating:

)

Nice job Apple. We're only going up from here.

Also, not to hijack the thread, but I think congrats to Dell are also in order because that Vostro line actually looks halfway decent. Mainly due to the lack of trialware.

bdkjones July 25, 2007 (Article Rating:

)

"This is up 21 percent from the same quarter a year ago, when Apple sold 8.1 iPods."

Paul, once again you've confused iPod sales with Zune sales. Actually, that one-tenth-of-a-Zune was an iPod case:

http://hideapod.com/

lotsamystuff July 25, 2007 (Article Rating:

)

Also, I don't think it's "curious" that Apple didn't have much to say about iPhone sales. The thing was only available for 31 hours of the quarter. And selling 270,000 of a $600 device that requires subscription fees and contracts in 31 hours is not bad at all.

bdkjones July 25, 2007 (Article Rating:

)

Good job by Apple. Hey lotsa, looks like preseton has hijacked your account.

shark47 July 25, 2007 (Article Rating:

)

"Yesterday, wireless carrier AT&T announced that iPhone activations in the first two days of sales were much lower than what analysts had expected."

um....ok which of you US citizens wants to field this one with a remark about AT&T's lackluster network and support? i mean, come on....i don't live in the US, and even i know how bad they are!

"We're only going up from here"

honestly, do you think they can really go down? i mean, really! when a small company like Acer, after going through numerous division breakups, can surpass them in worldwide notebook sales, you can't get much lower. wait until Leopard ship[wreck]s and we'll see where they stand.... ;)

"congrats to Dell are also in order because that Vostro line actually looks halfway decent. Mainly due to the lack of trialware."

i like this quote from their site:

"Customers said they hated trialware, so we took it away. Vostro systems come without annoying trialware pre-installed."

so what they're saying is that they (Dell) were annoying customers in the past and now they've suddenly had a change of heart after getting thousands of complaints. such hypocrisy! that'd be like if Keith Richards started advocating against drug use.

XP

Waethorn July 25, 2007 (Article Rating:

)

lotsasnarkystuff, as it turns out, that 0.1 unit was Apple TV. Apparently, Apple decided to count it along with iPods because sales were so low. FWIW, Microsoft sold 1 mn. Zunes during the last six months. Now, it may not be a big deal, but it's definitely more than the 50 units that you expected them to and hoped they would sell.

shark47 July 25, 2007 (Article Rating:

)

bdk, you've been absent for a while; but somehow I knew you'd show up for this one. Not only did you show up, but you consider yourself part of Apple!!! - "Nice job Apple. We're only going up from here."

lotsa - Again, you are the first to mention MS in a non-MS article!!! Nice job!!!

I guess loosing 6% of the stock value yesterday was in preparation for this...that way when they gain back 4% tomorrow, all of the Apple pundits can say - "Wow, did you see that...4% growth in 1 day!!!"

--tayme

tayme July 25, 2007 (Article Rating:

)

Interesting, Lotsa gets accused of bringing up Microsoft first in a non-Microsoft article.

No where in his post does Losta mention Microsoft but he did refer to the Zune (a Toshiba device rebranded as a Microsoft product). Using the logic presented then one would find that it was BDK that mentioned Microsoft first as he correctly credits Dell.

Giving credit where credit is do: Good job BDK!!!

A quick question does anyone know what 1000^5 equals? Makes one can wonder if 21 CRF part 11 needs to be re-examined. Oops my bad.

Vista (sp1)

Yawn! July 25, 2007 (Article Rating:

)

note to the tired one....don't tell me that you've fallen for the marketing double talk that lotsa likes to spew...too bad, I thought more of you.

--tayme

tayme July 26, 2007 (Article Rating:

)

See More Comments 1 2 3

You must log on before posting a comment.

If you don't have a username & password, please register now.