iPod surge boosts Apple earnings

iMacs help too


A new iMac and the smash hit iPod gave Apple a boost in the quarter ending 31 December. Apple posted revenues of $3.49bn for the three-month period, Q1 FY2005, up 74 per cent from last year, and profits continued to break out, up to $295m (70 cents a share).

The iPod accounted for much of the success, selling 4.58m units in the holiday season, double the previous quarter. But Apple topped a million Macs sold, too, or 26 per cent higher than a year ago. As an indication of the iPod's growth ramp, the music jukebox outsold CPUs only three quarters ago. Gross margin rose slightly to 28.5 per cent, up from 26.7 per cent.

The company said it had enough G5 chips to fulfil demand for the iMac; only supply of the 2.5GHz processor, used in the PowerMac line, was constrained. Executives attributed the better-than-expected figures to more people buying the more expensive iMacs, and more customers buying direct. Direct sales - which includes the bricks and mortar retail stores - was up 45 per cent for the quarter.

In response to questions about yesterday's budget Mac and iPod, Apple said that Mac Mini margins were similar to the eMac, which is below the corporate average, that iPod margins "were close to 20 per cent", and that iPod Shuffle margins were below 20 per cent.

Apple sold 456,000 iMacs and eMacs (229,000 the previous quarter), 152,000 Power Mac CPUs (down from 156,000 in Q4 04), 271,000 iBooks and 167,000 PowerBooks.

Apple's online music store is running "just above break-even" said executives, but the company didn't see this as a profit center and was prepared to see it make a loss in order to grow, by cutting prices, or recruiting more staff to "take it new places". (Executives ducked questions about possible movie downloads) .

"Selling music will help us sell iPods, and that will help us sell computers," CFO Peter Oppenheimer said. ®

Related Stories

Apple shares hit four-year high
Apple profits leap as iPod sales rocket
Apple stores are in the black
Apple posts highest revenue for three years


Other stories you might like

  • Robotics and 5G to spur growth of SoC industry – report
    Big OEMs hogging production and COVID causing supply issues

    The system-on-chip (SoC) side of the semiconductor industry is poised for growth between now and 2026, when it's predicted to be worth $6.85 billion, according to an analyst's report. 

    Chances are good that there's an SoC-powered device within arm's reach of you: the tiny integrated circuits contain everything needed for a basic computer, leading to their proliferation in mobile, IoT and smart devices. 

    The report predicting the growth comes from advisory biz Technavio, which looked at a long list of companies in the SoC market. Vendors it analyzed include Apple, Broadcom, Intel, Nvidia, TSMC, Toshiba, and more. The company predicts that much of the growth between now and 2026 will stem primarily from robotics and 5G. 

    Continue reading
  • Deepfake attacks can easily trick live facial recognition systems online
    Plus: Next PyTorch release will support Apple GPUs so devs can train neural networks on their own laptops

    In brief Miscreants can easily steal someone else's identity by tricking live facial recognition software using deepfakes, according to a new report.

    Sensity AI, a startup focused on tackling identity fraud, carried out a series of pretend attacks. Engineers scanned the image of someone from an ID card, and mapped their likeness onto another person's face. Sensity then tested whether they could breach live facial recognition systems by tricking them into believing the pretend attacker is a real user.

    So-called "liveness tests" try to authenticate identities in real-time, relying on images or video streams from cameras like face recognition used to unlock mobile phones, for example. Nine out of ten vendors failed Sensity's live deepfake attacks.

    Continue reading
  • Lonestar plans to put datacenters in the Moon's lava tubes
    How? Founder tells The Register 'Robots… lots of robots'

    Imagine a future where racks of computer servers hum quietly in darkness below the surface of the Moon.

    Here is where some of the most important data is stored, to be left untouched for as long as can be. The idea sounds like something from science-fiction, but one startup that recently emerged from stealth is trying to turn it into a reality. Lonestar Data Holdings has a unique mission unlike any other cloud provider: to build datacenters on the Moon backing up the world's data.

    "It's inconceivable to me that we are keeping our most precious assets, our knowledge and our data, on Earth, where we're setting off bombs and burning things," Christopher Stott, founder and CEO of Lonestar, told The Register. "We need to put our assets in place off our planet, where we can keep it safe."

    Continue reading

Biting the hand that feeds IT © 1998–2022