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Apple Profit More Than Quadruples
Al Reuters ^ | 1/11/05 | Duncan Martell

Posted on 01/12/2005 4:24:22 PM PST by zarf

Apple's dead, it'll never make it.....etc...


TOPICS: News/Current Events
KEYWORDS: apple; macuser
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SAN FRANCISCO (Reuters) - Apple Computer Inc. (Nasdaq:AAPL - news) on Wednesday posted a quarterly profit that blew past even the highest Wall Street forecasts on skyrocketing sales of its iPod digital music players and the highest number of Macintosh (news - web sites) computers sold in more than four years.

Shares of Apple, which issued a forecast for the current quarter that was above consensus analyst expectations, jumped 13 percent in after-hours trading.

Apple, based in Cupertino, California, said net income for its fiscal first quarter ended Dec. 25 nearly quintupled to $295 million, or 70 cents a share, from $63 million, or 17 cents a share, a year ago.

That tore past the high end of analyst expectations, 55 cents, by a wide margin, according to Reuters Estimates, and both net income and revenue set records.

"I think this momentum that happened last year is going to continue," said Owen Fitzpatrick, head of the U.S. Equity Group for Deutsche Bank Private Wealth Management. "Apple is a name in technology that at least for the next couple of quarters will have the wind at its back."

Shares of Apple, which on Tuesday unveiled a smaller, cheaper iPod that starts at $99 and a slim Mac without a display starting at $499, more than tripled last year.

Apple Chief Financial Officer Peter Oppenheimer said the company sold 337,000 of its all-in-one iMac G5 computers in the quarter.

Revenue rose 74 percent to $3.49 billion from $2.01 billion. Analysts had forecast revenue of $3.14 billion.

Apple said it shipped 4.58 million iPods in its holiday-sales-fueled first quarter, compared with 2 million in the fourth quarter.

Apple shares climbed to $74 in after-hours trade on the Inet electronic brokerage from their close of $65.46 on Nasdaq.

For its fiscal second quarter, the company forecast revenue of about $2.9 billion and earnings of about 40 cents a share.

Analysts on average have expected earnings of 33 cents for the second quarter and revenue of $2.76 billion.

Oppenheimer said Apple retail stores had a good quarter, with revenue there rising to $561 million from $273 million a year ago.

Altogether Apple sold 1.05 million Mac computers, generating $1.61 billion in revenue and up from 829,000 in the year-ago quarter.

Sales of iPods rose to 4.58 million units and generated $1.21 billion in revenue.

(Additional reporting by Anna Driver in New York and Peter Henderson in Los Angel

1 posted on 01/12/2005 4:24:23 PM PST by zarf
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To: zarf

LOL!! Whoops.....I got it backwards!!


2 posted on 01/12/2005 4:25:00 PM PST by zarf
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Their stock shot up more than 7 points today in after-hours trading... pretty sweet.


3 posted on 01/12/2005 4:32:58 PM PST by oolatec
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To: oolatec


Sounds like they're cooking the books.


4 posted on 01/12/2005 4:35:05 PM PST by LauraleeBraswell (“"Hi, I'm Richard Gere and I'm speaking for the entire world.” -Richard Gere)
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To: oolatec

That means it regained the 7 points it lost yesterday?


5 posted on 01/12/2005 4:36:08 PM PST by ambrose
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To: zarf

Apple began to improve when Jobs gave up on his dream/delusion that Apple could compete with MSFT. Apple will have to remain as a niche market player and nothing more. They really blew it in the 1980s.


6 posted on 01/12/2005 4:40:17 PM PST by ambrose
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To: ambrose

No, that means they gained +2 and closed at 72. Apple ain't dying.


7 posted on 01/12/2005 4:41:54 PM PST by oolatec
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To: LauraleeBraswell
Sounds like they're cooking the books.

That's a pretty irresponsible statement. Want to elaborate on why you think that?

My anecdotal evidence experience is that people are looking at Macs, for the reason they are enough better than Windows to attract that kind of interest.

8 posted on 01/12/2005 4:43:19 PM PST by eno_ (Freedom Lite, it's almost worth defending.)
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To: zarf

.. and somebody bragged yesterday on another Apple thread that he had shorted his Apple stock..


9 posted on 01/12/2005 4:45:19 PM PST by Paradox (Occam was probably right.)
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To: LauraleeBraswell

LOL!!!!!!!!!


10 posted on 01/12/2005 4:45:43 PM PST by cyborg (http://mentalmumblings.blogspot.com/)
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To: eno_

How much of that is due to the popularity of the ipod I wonder.


11 posted on 01/12/2005 4:46:12 PM PST by cyborg (http://mentalmumblings.blogspot.com/)
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To: oolatec

Who says Apple is dying?

Apple can and is doing well in the niche market.


12 posted on 01/12/2005 4:47:26 PM PST by ambrose
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To: oolatec
I'm Rich Beeatch!!!!!!!!!!!!!
13 posted on 01/12/2005 4:47:30 PM PST by cmsgop
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To: eno_

"My anecdotal evidence experience is that people are looking at Macs, for the reason they are enough better than Windows to attract that kind of interest."

It could also be a consequence of the phenomenal response to their I-Pod. Apparently, I'm the only person in the Western hemisphere yet to get one.


14 posted on 01/12/2005 4:48:25 PM PST by Cyclopean Squid (The 80s belonged to the Gipper, the Aughts belong to Dubya!)
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To: cyborg
How much of that is due to the popularity of the ipod I wonder.

Quite a bit. They got $1.2 billion in revenue from iPods and $1.6 billion from computers.

15 posted on 01/12/2005 4:48:40 PM PST by ThinkDifferent (These pretzels are making me thirsty)
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To: cmsgop

bling bling


16 posted on 01/12/2005 4:49:06 PM PST by cyborg (http://mentalmumblings.blogspot.com/)
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To: cyborg

Still waiting for my free iPod (courtesy of Citibank) to arrive. I'll be able to compare it to my cheaper and un-hyped Creative Mp3/


17 posted on 01/12/2005 4:49:12 PM PST by ambrose
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To: LauraleeBraswell

You obviously have no young people in your family. They all have iPods and all the accessories (special earphones, connections for in-car use). This is hugh...


18 posted on 01/12/2005 4:49:34 PM PST by kittymyrib
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To: ambrose

LOL Citibank was giving away free ipods?


19 posted on 01/12/2005 4:50:35 PM PST by cyborg (http://mentalmumblings.blogspot.com/)
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To: cyborg
How much of that is due to the popularity of the ipod I wonder.

Consumer electronics have low margins. I suspect it is due to iPod users buying Macs. Hence the Mac Mini, aimed at expanding that effect by hitting the price sweet spot.

20 posted on 01/12/2005 4:53:08 PM PST by eno_ (Freedom Lite, it's almost worth defending.)
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