Apple's profits soar thanks to iPod sales

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Given the proliferation of white earbuds everywhere you look, you might think that everyone now has an iPod, but Apple is still riding high on a wave of popularity thanks to the continued evolution of the device.

Over 8 million iPods were shipped in the last quarter, which is 32% up on 2005. Profits are now up by 48% on last year. 39% of the sales came from outside the US.

Apple also stated that its sale of Macintosh computers had risen by 12% on last year, to 1.33m units, the majority of which now sport Intel processors. That’s still a drop in the ocean compared to the likes of Dell, but it’s significant enough.

So what’s driving Apple’s new found popularity?

Well, Apple are still innovators, and they haven’t stood still. The
iPod has evolved enough to make it continually attractive to first-time
users and owners of older iPods.

Their iPod advertising campaigns have always been good. I’m not so
convinced about their computer ads – does any lay consumer really care
that Apple now uses Intel?

What Windows users seem to care more about is that they can now run
their operating system on a Mac. That makes switching much easier.

I think it’s fair to say that the old Apple were quite stubborn and
avoided standards. The new Apple is much smarter. Releasing Boot Camp –
the software that allows Windows and other PC software to run on
Intel-based Macs – was a killer move on Apple’s part and should work
well for them.

I don’t think Macs are ever going to go mainstream like their little
white-earbudded cousins, but they’re definitely getting more attention
than they used to.

What do you think of Apple’s current run of success?

Andy Merrett

One thought on “Apple's profits soar thanks to iPod sales

  • You understate the Mac position. Mac sales grew 30% to 1.6 million units over the comparable period last year. An all time record for Apple since 1976.

    The really big story this year will be Mac sales, though of course iPod will still grow strongly.

    Apple adverts show consumers that Macs do EVERYTHING a pc can do, including runnning Windows in a choice of ways, and OSX is a much more advanced OS than even Vista will be, with such strong security that numerous attempts by virus writers have come to nothing, there is NO successful virus yet for OSX.

    Also remember Apple are due to make iTunes the de facto way to download TV and film content and watch it instantly on your TV (to be renamed iTV). They are also likely to bring out an iPhone mobile which will also present us with much better interfaces for using a phone and music too, possibly revolutionising that industry as it did with MP3 players. And that is without the upcoming full screen iPod with on screen navigation. Huge implications there also for PDA/Smartphone capabilities.

    Apple has $10bn in cash now and the resources to really ramp things up. We all know people who are loving having switched to Mac OSX from Windows, numbers are growing daily and that includes the most influential IT minds out there.

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