Apple's Q2 2006 Financial Conference Call Notes

Apple reported on their Q2 2006 Financial Results and provided a webcast conference call. Here are relevant notes from that conference call:

Mac business 50% of quarterly revenue.

- Up 4% from the same quarter last year
- Pleased with Intel transition progress, and "solidly on track" to complete the Intel transition by the end of calendar 2006.
- "Pause" in sales due to transition anticipation. Reasons listed include: delays due to shipping delays on MacBook Pro, users awaiting Universal Apps and users awaiting upcoming Intel Macs.
- 1,112,000 Macs sold during March; $1.572 Billion in Revenue.
- 614,000 Desktop Macs ($833 million revenue)
- 498,000 Portable Macs ($739 million revenue)

Music business 50% of quarterly revenue

- Up 79% year over year
- Over 50 million iPods sold cumulatively
- 8,526,000 iPods sold
- Over 1 billion iTunes Songs sold. 87% marketshare.
- iTunes: 2.9 million songs, 60,000 podcasts, 9000 music videos, 70+ television programs
- iPod: 78% of MP3 player marketshare (up from 71% in December) in U.S.
- 2000+ iPod Accessories
- 40% of New Cars sold in U.S. will offer direct iPod integration

Retail
- $636 Million in revenue
- 50% of Macs sold were "new to Mac"
- 141 Stores Open by end of Quarter

Outlook
- Still expect a pause in demand in Mac business due to transition
- Happy with the Intel transition
- "Very excited about the products in our pipeline"

From Q&A
- Software sales better than expected (iLife and iWork, particularly).
- iPod: Plans to increase local advertising and point of sale locations in outside countries to boost marketshare.
- Question about Intel Mac mini price increase: Apple viewed Mac mini as still an "incredible" value, wouldn't comment on future pricing plans.
- Supply/Demand balance for Intel Macs.
- 40 New retails stores this year, primarily in the U.S.
- Boot Camp impact? A lot of customer requests for it. Many Windows users were considering switching to the Mac, and feel it makes it more appealing. Still gathering data. "High level of interest". Not releasing the download number for Boot Camp.
- Again, on target to transition the entire product line to Intel by end of the year.
- No plan to sell and support Windows.
- Music store "above break even"
- Don't feel the French DRM legislation is good for anyone
- Very excited about the product pipeline including Macs
- Nothing holding back the Intel transition

Related Roundups: MacBook Pro, Mac Pro
Buyer's Guide: Mac Pro (Neutral)

Popular Stories

iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
iPhone 14 Pro Dynamic Island

iPhone 18 Pro Leak Adds New Evidence for Under-Display Face ID

Monday December 8, 2025 4:54 am PST by
Apple is actively testing under-screen Face ID for next year's iPhone 18 Pro models using a special "spliced micro-transparent glass" window built into the display, claims a Chinese leaker. According to "Smart Pikachu," a Weibo account that has previously shared accurate supply-chain details on Chinese Android hardware, Apple is testing the special glass as a way to let the TrueDepth...
iOS 26

Apple Seeds Second iOS 26.2 Release Candidate to Developers and Public Beta Testers

Monday December 8, 2025 10:18 am PST by
Apple today seeded the second release candidate version of iOS 26.2 to developers and public beta testers, with the software coming one week after Apple seeded the first RC. The release candidate represents the final version iOS 26.2 that will be provided to the public if no further bugs are found. Registered developers and public beta testers can download the betas from the Settings app on...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Monday December 1, 2025 2:40 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Johny Srouji

Apple Chip Chief Johny Srouji Could Be Next to Go as Exodus Continues

Sunday December 7, 2025 10:41 am PST by
Apple's senior vice president of hardware technologies Johny Srouji could be the next leading executive to leave the company amid an alarming exodus of leading employees, Bloomberg's Mark Gurman reports. Srouji apparently recently told CEO Tim Cook that he is "seriously considering leaving" in the near future. He intends to join another company if he departs. Srouji leads Apple's chip design ...
Johny Srouji

Apple's Chipmaking Chief Johny Srouji Responds to Report About Him Potentially Leaving

Monday December 8, 2025 9:23 am PST by
Apple's chipmaking chief Johny Srouji has reportedly indicated that he plans to continue working for the company for the foreseeable future. "I love my team, and I love my job at Apple, and I don't plan on leaving anytime soon," said Srouji, in a memo obtained by Bloomberg's Mark Gurman. Here is Srouji's full memo, as shared by Bloomberg:I know you've been reading all kind of rumors and...
top stories 2025 12 04a

Top Stories: iOS 26.2 Coming Soon, Apple Execs Depart, and More

Saturday December 6, 2025 6:00 am PST by
You'd expect things to be starting to wind down for the holidays by now, but that doesn't seem to be the case yet in the world of Apple news, with Apple just about ready to release iOS 26.2 and other operating system updates to the public. There was also a flurry of news this week about Apple executive departures, some expected and some not so expected, while we also learned that Apple and...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...