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Apple Ipod Sales Boost Profits

April 19, 2006

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from Marketwatch.com

Apple’s revenue climbed almost 35% to $4.36 billion as Apple sold 8.5 million iPod units, up from 5.3 million a year earlier. The technology giant now gets 39% of its revenue from the popular product and is benefiting as more consumers use the device to play digital songs and videos.

During the quarter, Apple released a 1-gigabyte version of its iPod Nano player, and cut the prices of its iPod Shuffle devices. On a conference call to discuss the results, Chief Financial Officer Peter Oppenheimer said iPod gross margins were above 20% during the quarter, and that according to NPD Techworld, the company now holds 78% of the U.S. market for MP3 players.
“They essentially are the MP3 market,” said Barry Jaruzelski, technology managing general partner at consultancy Booz, Allen, Hamilton. “So far, they haven’t hit the top of saturation point.”

Sales of Macintosh personal computers also rose, even as Apple switches its entire PC line over to microprocessors from Intel Corp. Apple said that it sold 1.11 million Mac computers, almost 4% higher over the 1.07 million units it shipped a year ago.

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