Cupertino (CA) – Apple posted another solid quarter, showing substantial year-over year growth. Most of the added revenue comes from surging notebook sales as well as the iPhone. For the very first time, iPod sales very virtually flat and contributed little to the additional revenue.  

Apple said that its first quarter (fiscal Q2) revenue came in at $7.51 billion, compared to $5.26 billion last year. The profit was $1.05 billion, exceeding the firm’s Q2 2007 of $770 million.

According to the company, 2,289,000 Macintosh computers, 10,644,000 iPods and 1,703,000 iPhones were shipped during the quarter.

 "We're delighted to report 43% revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."

However, the result appears to be a mixed bag of good and bad. On the positive side, notebook sales surged from 891,000 units in Q2 2007 to more than 1.4 million this year. Notebook revenue climbed $1.4 billion to $2.1 billion. Desktop units also increased, albeit on a slower pace (626,000 to 856,000 units).

The iPhone sales are still not at the level Apple would need to hit its 10 million-per-year-target. 1.7 million phones, however, brought in $378 million, which was more than what the company saw coming in from 2.3 million iPhones in the preceding quarter ($241 million).

Concerns could be emerging over Apple’s iPod sales, which are showing negligible unit growth over the year. 10,644,000 iPods compare to 10,549,000 million iPods in Q2 2007. Revenue from iPods, however, increased from $1.7 billion to $1.8 billion, which indicates that able was successful in raising the average selling price of iPods and convincing more people to purchase the more expensive iPod touch instead of Nano models.   

They can't sustain gowth forever

Apr 23, 2008 21:23     

What do they think ipods sales are going to increase every single year? The problem with high tech companies and stockholders these days. They think the growth never ends. And there's something wrong when they don't have perpetual growth every single year. Maybe everyone who wants an ipod has one!
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re: J.Doe

Apr 24, 2008 06:51     

"Maybe everyone who wants an ipod has one! " Or... maybe everyone who can afford one... Rules of the market... when the sales slow down, lower the price and make up for it in quantities...
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everyone has an ipod these days

Apr 24, 2008 06:52     

and the only reason why will buy a new one is because their current ipod fails
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Hard to grow

Apr 24, 2008 08:40     

When you have 80% of the market and the competition is catching up minus the touch but I don't really like the touch that much. I like to switch songs as i'm working out and it's difficult to do that with the touch. Apple needs to grow their mac sales which they did and will do until they change the processor or hit 12 to 15% market share. After that I see a lot of trouble getting mac sales to grow. Apple also needs to grow the iPhone which they have done well and probably will be able to until they get 10 to 12% market share of the smart phone market. After that again I believe it will be though for them to grow. They did guide down a little on their 3rd quarter number so maybe no 3G iPhone this quarter like many suspected (including me)?

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ipod

Apr 24, 2008 10:27     

I got 2 old ipods that I am phasing out becaues it's too old and size to small now... I have another 30G gen 5.5 ipod and is buying 2 more 80 G gen6 ones to replace the broken ones. I think after this last purchase...this is the last of any ipod I will ever buy again. may be iphone...but the size and price and contract price is really expensive. If apple make some non-touch screen iphone with just mp3 player with large harddrive size...and lower price...it will still sell like hot cakes.. no need for web or GPS to cut cost.... call it iphone nano and they can sell a lot.

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it's a common item now

Apr 24, 2008 11:31     

The ipod was a once a pricey device that was once an exclusive luxury item that was popular with hipsters and young professionals who took pleasure in owning a sheek music device when most were still using CD's and 512MB flash players. Now ipods are common amoung school kids and adults who pick them up as presents or on a whim at Wal-Mart. Not only that, there are many alternatives that are cheaper with more features. Growth has leveled off..the only way to increase it is more innovation.

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Ha, Ha,

Apr 24, 2008 15:21     

Maybe the reason could be that people finally have a mind of their own. Sorry apple image. By the way, love my Cowon D2, touchscreen, with multi codak support, and uses large and inexpensive SD memory. Made for true audiophiles
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