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  • A Look at Apple's Best Quarter Ever


    Summing up Apple's Q1 conference call.

    iPhone

    The iPhone pretty much destroyed the year goal of 10 million units with 13.7 million iPhones sold thanks to 4.3 million being sold during the quarter. Furthermore, the AppStore did extremely well reaching 15,000 apps and 500,000,000 downloads (which Apple kept 30% of the profit from and declined to announce how much that profit was). The iPhone is now in 70 markets and Apple is continuing to expand their mobile phone influence to other areas. Apple also now has hold of 32% of the smartphone market -- 48% in the U.S.

    Aside from the iPhone doing well there doesn't seem to be any indication of a iPhone Nano coming. When questioned on the subject Apple COO Tim Cook said "We'll let somebody else do that. Our objective is not to be the unit-share leader in the cell phone industry, it's to build the world's best phone." Lets put that endless rumor to rest already. Please.

    Mac

    Mac sales were up 9% from the same quarter last year with around 2.5 million sold (half to new mac users). This is due to a large jump in notebook sales of 34% which made up the 25% drop in desktop sales. Also down were Mac sales to schools with a 6% drop overall and a 12% drop in K-12. Maybe Apple should have introduced some updates to the iMac and Mac Mini lines at Macworld 09 after all .

    While there have been many rumors of the possibility of an Apple netbook in the future Apple COO Tim Cook is still saying that “We’re watching that space, but right now from our point of view, the products in there are principally based on hardware that’s much less powerful than we think customers want, software technology that is not good, cramped keyboards, small displays," and going further to say that “We don’t think people will be pleased with those products. It’s a category we watch, we’ve got some ideas here, but right now we think the products are inferior and will not provide an experience to customers they’re happy with.”

    iPod

    Apple is still dominating with 73% of the mobile music player market selling 22.7 million in the quarter. For some reason they still are contending that the iPod Touch is an outstanding gaming machine which many of our readers here disagree with but oh well -- think what you want Apple. Fake it long enough and it may come true.

    Apple TV

    WTH Mate?!?!?! I guess I'm just don't understand the appeal of this thing but apparently some people do. The Apple TV sold THREE TIMES more units than the same quarter a year ago. Apple of course plans on continuing to invest in the Apple TV and furthering the technology.

    Apple Stores

    Apple Stores performed well even though the economic client hasn't been to great. The grand total was $1.74 billion in revenue which works out to be an average of $7 million per store. All the numbers look good revenue was down per store but that's to be expected.

    Apple currently has 251 Apple stores spanning across 10 different countries. They are planning on expanding in 2009 with another 25 stores half of which will be located outside of the U.S.

    Steve Jobs

    When questioned about how Steve is doing Cook responded by talking about how strong the executive team in charge of Apple's employees is and then going further to say that “... frankly, we don’t settle for anything less than excellence in every group in the company, and the self-honesty to admit where we’re wrong. And I think regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well. I would just reiterate that Apple is doing the best work in its history,” Basically a cop-out from actually touching on anything close to the health of Jobs

    Monies

    The results of Apple's Best Quarter Ever are in! Apple made a profit of $1.61 billion during the quarter with revenue being $10.7 billion which is the first time in Apple history of breaking the $10 billion mark. Apple now has $28 billion on hand in the bank with no set plans on how to spend that kind of money.

    Intellectual Property

    Cook also gave out a warning to other companies concerning Apple's intellectual property rights saying that "We are watching the landscape. We like competition as long as they don't rip off our [Intellectual Property], and if they do, we're going to go after anybody that does." While the warning wasn't specifically directed at any company in particular one might infer that they are looking very closely at devices like the Palm Pre.

    If you'd like to listen to the q1 conference call concerning you can here.
    This article was originally published in forum thread: A Look at Apple's Best Quarter Ever started by Cody Overcash View original post