Apple's 3rd Quarter 2006 Financial Results

Apple posted their 3rd Quarter 2006 financial results today.

Apple posted revenue of $4.37 billion and a net quarterly profit of $472 million or $.54 per diluted share. For reference, the year-ago quarter brought in $3.53 billion in revenue, net profit of $320 million or $.37 per diluted share.


Analysts expected Apple to earn 44 cents per share, on average, within a range of 40 cents to 49 cents, on revenue of $3.68 billion, according to Reuters Estimates.

Apple shipped 1,327,000 Macintosh computers and 8,111,000 iPods during this quarter which represents a 12% growth in Macs and 32% growth in iPods year-over-year.

- 75% of Macs sold during the quarter used Intel processors.
- 2nd highest quarterly sales and earnings in Apple's history
- International sales accounted for 39 percent of the quarters revenue.
- iPod continued to earn a US market share of over 75 percent
- Desktops: 529,000, down 14% from previous quarter
- Portables: 798,000, up 60% from previous quarter
- iPods: 8,526,000

Live streaming of the results conference call will be broadcast at 5pm EST (Updates will be posted here).

Updates:
- Mac: 55% of revenue. Increased sales to 1.327 million.
-- Pleased with Intel transition. "Solidly" on track to update Xserve and PowerMac by end of this year.
-- Over 2900 Universal Applications.
-- 70% of most "critical" applications will be converted by September
-- MacBook very well received
-- Happy with the Mac ad campaign, feel that it is contributing to Apple's momentum
- iPod
-- NPD: 75% of market share US (MP3)
-- Other music product revenue up 90% year over year
-- Strong sales of iTunes and iPod accesories
-- iTunes Music Store - 85% marketshare.
-- Enthusiastic about upcoming iTunes/iPod products in the pipeline
- Retail
-- 146 stores open during quarter.
-- 50% of buyers are new to Mac.
- Outlook:
-- "Very excited about and confident in the products in our pipeline."

Q&A

Q: How important is it to hit the holiday season. and how innovative can innovative be [w/ respect to iPods]?
A: We don't talk about unannounced products, but "very confident" in products in our pipeline.

Q: Markets: Consumer, Education, Pro
A: The MacBook was in high demand in both consumer and education. Pro market has been slow - thought to be due to wait in PowerMac with Intel and some Universal apps. Education market did very well. Higher edu grew 31% year to year. Very well poised in going into school season.

Q: Assuming any contribution from Leopard for the September [next] quarter?

A: We've not announced the ship date for Leopard, but will show the new features at WWDC.

Q: Does the fact that Intel rolls our processors more quickly and drops prices affect you? Will you be adjusting prices more frequently or same as you have been with new product releases?
A: We're very pleased to be working with Intel. A great partner. They have the best processor by far in our current and upcoming products. Pleased with the new products, but as you know we don't discuss our unannounced products. don't want to comment on how we'll be changing our pricing.

Q: Will there be any surprises at WWDC?
A: [Laughter, then Openheimer:] Well, you will have to come and attend.

Popular Stories

iPhone SE 4 Thumb 1

'New' iPhone SE Product Listing Appears on French Website

Wednesday February 12, 2025 6:49 am PST by
As the wait continues for Apple's long-rumored, fourth-generation iPhone SE, French electronics retailer Boulanger has prematurely published a product listing for a "new" model of the iPhone SE. The placeholder page says the device is "coming soon," but it offers no further information, and the price shown is obviously not real. The listing was spotted by a reader of the French technology...
apple launch feb 2025 alt

What to Expect From the 'Apple Launch' Next Week

Thursday February 13, 2025 11:48 am PST by
Apple has yet to announce any new devices this year, but that could change starting next week. Apple CEO Tim Cook today said to "get ready" for a "launch" on Wednesday, February 19. "Get ready to meet the newest member of the family," said Cook, in a social media post. The post includes an #AppleLaunch hashtag, along with a short video featuring an animated Apple logo inside of a circle....
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...
m2 macbook air blue

M4 MacBook Air Release Continues to Appear Imminent

Monday February 10, 2025 10:56 am PST by
There continue to be signs of a new MacBook Air with an M4 chip, indicating that we could see the machine launch in the not too distant future. A private account on X today shared the identifiers that the MacBook Air will use, and those identifiers correspond to the M4 chip. According to the source, both the 13-inch MacBook Air and the 15-inch MacBook Air will be equipped with Apple's...
oppo find n5 fingers

World's Thinnest Foldable Phone Launches Next Week

Monday February 10, 2025 3:05 am PST by
Oppo has confirmed a February 20 global launch for its Find N5, which the company claims is the world's thinnest device in the foldable phone category. The phone is expected to be re-branded as the OnePlus Open 2 in the US. The Chinese vendor has been teasing the device in the last few weeks, touting its waterproofing and nearly invisible display crease, and highlighting its thinness by compa...
watchOS 11 Thumb 2 1

Apple Releases watchOS 11.3.1

Monday February 10, 2025 10:04 am PST by
Apple today released watchOS 11.3.1, a minor update to the operating system that runs on the Apple Watch. watchOS 11.3.1 is compatible with the Apple Watch Series 6 and later, all Apple Watch Ultra models, and the Apple Watch SE 2. watchOS 11.3.1 can be downloaded by opening up the Apple Watch app and going to General > Software Update. To install the new software, the Apple Watch needs to...
iPhone 17 Pro Render Front Page Tech

iPhone 17 Pro With All-New Camera Bar Design Allegedly Revealed

Thursday February 13, 2025 5:49 pm PST by
Apple's next-generation iPhone 17 Pro will feature three rear cameras arranged in a familiar triangular layout, but the cameras will be housed in an all-new rectangular camera bar with rounded corners, according to YouTube channel Front Page Tech. iPhone 17 Pro camera design render created by Asher for Front Page Tech In a video uploaded today, Front Page Tech host Jon Prosser said the camera ...
M4 mini Glowing Blue

Apple Begins Selling Refurbished M4 Macs

Wednesday February 12, 2025 11:35 am PST by
Apple today added MacBook Pro and Mac mini models with M4 series chips to its certified refurbished store in the United States, Canada, the United Kingdom, and Ireland for the first time since the computers were introduced in October 2024. Some refurbished MacBook Pro models with M4 chips are also available in Belgium, Germany, the Netherlands, Spain, and select other European countries. ...
sequoia

Apple Releases macOS Sequoia 15.3.1

Monday February 10, 2025 10:11 am PST by
Apple today released macOS Sequoia 15.3.1, a minor update to the macOS Sequoia operating system that came out last September. macOS 15.3.1 comes a few weeks after the launch of macOS Sequoia 15.3. Mac users can download the ‌‌‌macOS Sequoia‌‌‌ update through the Software Update section of System Settings. Apple has also released macOS 13.7.4 and macOS 14.7.4 for those who are...