Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
Apple's 3rd Quarter 2006 Financial Results
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).
- 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
-- 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
-- 146 stores open during quarter.
-- 50% of buyers are new to Mac.
-- "Very excited about and confident in the products in our pipeline."
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.