Report: Apple gained significant market share of computer industry during past quarter
Wednesday, January 12, 2005 - 05:57 PM EDT"Buoyed by a surge in sales of both iPods and Macintoshes, Apple Computer on Wednesday reported first-quarter earnings that soared past expectations," Ina Fried reports for CNET News. "The Mac maker earned $295 million, or 70 cents per share, on revenue of $3.49 billion. That compares with earnings of $63 million, or 17 cents per share, on revenue of $2 billion in the same quarter a year ago."
Fried reports, "Analysts said that the new $499 Mac Mini should help the company convert many of those iPod buyers into Mac users. 'We believe the Mac Mini will increase the percentage of iPod-toting Windows users who purchase a Mac by almost threefold,' Needham analyst Charles Wolf said in a research note ahead of Wednesday's earnings report. Mac sales rose significantly last quarter. The company sold 1,046,000 Macs, up 26 percent from last year. Analysts have been projecting a rise for the computer industry as a whole of about 10 percent, meaning Apple gained significant share during the quarter."
"Sales of the iMac were particularly strong, as Apple redesigned the product around a G5 processor. The product accounted for $620 million in revenue, up 187 percent from iMac sales in the prior quarter and up 147 percent from a year ago. iBook sales were also up in the quarter, but sales of the Power Mac and PowerBook were down from a year ago," Fried reports. "The company's forecast for the coming quarter also was higher than prior analyst predictions. Apple projected revenue of about $2.9 billion and earnings per share of about 40 cents. Analysts had been looking for revenue of $2.75 billion and earnings of 33 cents per share."
Full article here.
MacDailyNews Take: No iPod Halo Effect, eh? Glad we're not WindowsDailyNews for more reasons than one.
Related MacDailyNews articles:
Apple posts net profit of $295 million on $3.49 billion revenue, highest in Apple's history - January 12, 2005
IDC VP Roger Kay sees no evidence of Apple 'iPod Halo Effect' based on 'Apple's desktop share' - January 10, 2005
Dvorak calls Mac market share 'stagnant' when numbers really show Mac market share growth - December 29, 2004
Signs point to Apple adding to their 30 million Mac users via 'iPod Halo Effect' - October 26, 2004

Apple said in the conference call that the PowerMac will not reach the 200,000 unit level in any quarter ever again. It's clear that the iMac G5, they said, has taken away sales, particularly to those who had a G4 PowerMacs.
In a way this is too bad, as the PowerMac is the most profitable of all of Apple's CPUs. However I would think that growth in the server market could eventually help the higher end sales. Dispite the Mac geeks desire for power and more power the general public is no longer concerned with that as much as before. They just one computers that work..... and that's where, in my opinion, Apple is going to benefit with the iMac and Mac mini.
This is a great time for Apple. The second coming, so to speak.