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

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...
iPhone Car Key Kia

Here's Which Vehicles Offer iPhone Car Keys

Sunday July 6, 2025 3:03 pm PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. Apple has a web page with a list of vehicle models that ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iphone 17 pro render majin bu

New iPhone 17 Pro Renders Highlight Apple Logo and MagSafe Design Changes

Sunday July 6, 2025 8:43 pm PDT by
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max. Image via Majin Bu. Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side. ...
Prime Day 25 Feature Warm Triad

The Best Early Prime Day Deals on Apple Products

Saturday July 5, 2025 7:22 am PDT by
Amazon is soon to be back with its annual summertime Prime Day event, lasting for four days from July 8-11, the longest Prime Day yet. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront, and there are already many deals you can get on sale ahead of the event. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a ...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...