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Apple's Mac Makes Strong Market Share Gains in Quarter
 

After years of false starts, the Apple "Switch" campaign appears to be finally paying off: In the latest quarter, the company's Macintosh computers garnered almost 3 percent of the worldwide PC market for the first time in a decade and exceeded 5 percent in the US. Apple sold 1.764 million Macs in the quarter, representing growth of 33 percent year over year. Overall, the PC market grew just 12 percent in the quarter.

Apple earned a profit of profit of $818 million on revenues of $5.41 billion in the quarter. This represents a sharp increase in earnings from the same quarter a year earlier, when Apple posted a profit of $472 million on revenues of $4.37 billion. Gross margins were an outrageous 36.9 percent.

"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Apple CEO Steve Jobs, noting that the company sold 150,000 more Macs in the quarter than it did in its previous best-selling quarter.

Apple also sold 9.8 million iPods in what is traditionally a slow selling period for the company's consumer electronics devices. This is up 21 percent from the same quarter a year ago, when Apple sold 8.1 iPods.

Apple was relatively quiet about the heavily hyped iPhone, which went on sale just two days before the quarter ended and got off to a rough start on that opening weekend thanks to technical glitches. Tuesday, wireless carrier AT&T announced that customers activated just 145,000 iPhones first two days of sales, far below analysts estimates, which went as high as 700,000 units. According to Apple, it actually shipped 270,000 iPhones in the period (not all were sold to customers), still well below estimates. But that figure suggests that perhaps half of all initial iPhone customers--who paid an average of $585 for the device, including fees but not including a two-year contract--were unable to use their devices for about 24 hours when they brought them home. Apple apologized for the snafu and said that the activation system had been since fixed.

The company did, however, say iPhone sales are on track. The company expects to sell 1million iPhones by the end of the current quarter and 10 million by the end of 2008. "iPhone is off to a great start," Jobs noted.







Reader Comments

"This is up 21 percent from the same quarter a year ago, when Apple sold 8.1 iPods." That poor soul who bought 1/10th of an iPod... sad really.

will84 -July 25, 2007

Nice job Apple. We're only going up from here. Also, not to hijack the thread, but I think congrats to Dell are also in order because that Vostro line actually looks halfway decent. Mainly due to the lack of trialware.

bdkjones -July 25, 2007

"This is up 21 percent from the same quarter a year ago, when Apple sold 8.1 iPods." Paul, once again you've confused iPod sales with Zune sales. Actually, that one-tenth-of-a-Zune was an iPod case: http://hideapod.com/

lotsamystuff -July 25, 2007

Also, I don't think it's "curious" that Apple didn't have much to say about iPhone sales. The thing was only available for 31 hours of the quarter. And selling 270,000 of a $600 device that requires subscription fees and contracts in 31 hours is not bad at all.

bdkjones -July 25, 2007

Good job by Apple. Hey lotsa, looks like preseton has hijacked your account.

shark47 -July 25, 2007

"Yesterday, wireless carrier AT&T announced that iPhone activations in the first two days of sales were much lower than what analysts had expected." um....ok which of you US citizens wants to field this one with a remark about AT&T's lackluster network and support? i mean, come on....i don't live in the US, and even i know how bad they are! "We're only going up from here" honestly, do you think they can really go down? i mean, really! when a small company like Acer, after going through numerous division breakups, can surpass them in worldwide notebook sales, you can't get much lower. wait until Leopard ship[wreck]s and we'll see where they stand.... ;) "congrats to Dell are also in order because that Vostro line actually looks halfway decent. Mainly due to the lack of trialware." i like this quote from their site: "Customers said they hated trialware, so we took it away. Vostro systems come without annoying trialware pre-installed." so what they're saying is that they (Dell) were annoying customers in the past and now they've suddenly had a change of heart after getting thousands of complaints. such hypocrisy! that'd be like if Keith Richards started advocating against drug use. XP

Waethorn -July 25, 2007

lotsasnarkystuff, as it turns out, that 0.1 unit was Apple TV. Apparently, Apple decided to count it along with iPods because sales were so low. FWIW, Microsoft sold 1 mn. Zunes during the last six months. Now, it may not be a big deal, but it's definitely more than the 50 units that you expected them to and hoped they would sell.

shark47 -July 25, 2007

bdk, you've been absent for a while; but somehow I knew you'd show up for this one. Not only did you show up, but you consider yourself part of Apple!!! - "Nice job Apple. We're only going up from here." lotsa - Again, you are the first to mention MS in a non-MS article!!! Nice job!!! I guess loosing 6% of the stock value yesterday was in preparation for this...that way when they gain back 4% tomorrow, all of the Apple pundits can say - "Wow, did you see that...4% growth in 1 day!!!" --tayme

tayme -July 25, 2007

Interesting, Lotsa gets accused of bringing up Microsoft first in a non-Microsoft article. No where in his post does Losta mention Microsoft but he did refer to the Zune (a Toshiba device rebranded as a Microsoft product). Using the logic presented then one would find that it was BDK that mentioned Microsoft first as he correctly credits Dell. Giving credit where credit is do: Good job BDK!!! A quick question does anyone know what 1000^5 equals? Makes one can wonder if 21 CRF part 11 needs to be re-examined. Oops my bad. Vista (sp1)

Yawn! -July 25, 2007

note to the tired one....don't tell me that you've fallen for the marketing double talk that lotsa likes to spew...too bad, I thought more of you. --tayme

tayme -July 26, 2007

"so what they're saying is that they (Dell) were annoying customers in the past and now they've suddenly had a change of heart after getting thousands of complaints. such hypocrisy! that'd be like if Keith Richards started advocating against drug use." People and companies can change, "WaeBonch". Aren't you the one always telling us that Microsoft is no longer a predatory monopolist? That all of that is ancient history? So which is it? ------ "it's definitely more than the 50 units that you expected them to and hoped they would sell." I have no "hope" or expectation for the Zune. I couldn't care less how many they sell, because it's a me-too POS. Now if Microsoft comes up with something truly revolutionary and innovative (instead of rebranding a competitor's product and introducing yet another proprietary playback format), then I would hope it would be a raging success, because innovation is like a rising tide that raises all ships. As it is, the Zune is just a pathetic me-too product. ---- "lotsa - the first to mention MS in a non-MS article!!!" Thank you...I accept this award on behalf of my hero "WaeBonch". I strive to be like him, eh? I even started building PCs in my daddy's basement, and post anti-Apple and -DELL propaganda wherever I go. Next, I'm going to post a 1,200-word treatise on SoundBlaster, followed by an extensive explanation of how it's not Microsoft's fault if Vista won't run your software. Then I'll say something about how fat and stupid Americans are. ----- "Using the logic presented then one would find that it was BDK that mentioned Microsoft first as he correctly credits Dell." Logic never enters into the picture with these folks, "Yawn!", but thanks anyway.

lotsamystuff -July 26, 2007

I guess the 270,000 number depends on who does the counting... http://tinyurl.com/2yvhgn

jersey72 -July 26, 2007

@lotsahipocrisy: "Thank you...I accept this award on behalf of my hero "WaeBonch". I strive to be like him, eh?" Just stop. The number of times that you have brought up Apple first has been innumerable. Only you think you're clever by saying "the company from Cupertino". You've also said that you won't personally attack Waethorn or respond to his posts unless he attacks you personally. I reread his postings this time around and he said nothing about you or to you. However, you were once again the first to attack him. All you continue to show is that you're a trolling hypocrite.

jersey72 -July 26, 2007

"People and companies can change" sadly, but not surprisingly, and unlike Dell, you're still just as annoying as ever. XP

Waethorn -July 26, 2007

@jersey - re: http://tinyurl.com/2yvhgn Good read. It looks like Apple and AT&T are getting along swimmingly!!! I will say that the iPhone is technically, a very cool toy...but Apple dropped the ball big time by choosing AT&T as a partner. --tayme

tayme -July 26, 2007

"iPhone is technically, a very cool toy" the keyword being *toy* i guess that puts it in the same league as this: http://tinyurl.com/2snnfv all the same functionality and only costing 1/75th the price! ;) XP

Waethorn -July 26, 2007

@tayme: "but Apple dropped the ball big time by choosing AT&T as a partner." That's not the only place that Apple missed with the iPhone. The fact that it doesn't support 3G is pathetic. I have a Cingular (AT&T) phone that does 3G, and the speeds on 3G are just fine. EDGE, of course, is slow, but fortunately almost every city has 3G coverage. Why spend $600 on a phone that doesn't even do 3G? And with Apple with all their "security prowress" couldn't come up with a way to run 3rd party apps is beyond me. Creating an AJAX app for Safari isn't the same as an installed application - unless, of course, one exploits the many security holes in Safari. As cool as the iPhone looks (and it is a sexy device), my 8525 still offers me everything I want (including Google Maps).

jersey72 -July 26, 2007

"No where in his post does Losta mention Microsoft but he did refer to the Zune (a Toshiba device rebranded as a Microsoft product)." I'm sorry but people call "HD Cinema Displays" Apple products all the time (a Samsung device rebranded as a Apple product). ;) "Using the logic presented then one would find that it was BDK that mentioned Microsoft first as he correctly credits Dell." What logic would that be? Last I checked Microsoft doesn't make Dell products, and Dell doesn't make Microsoft products. On occasion a Dell product arises with a Microsoft product in it, but if we are to insinuate mention vicariously... well I'm afraid we are in a bit of a spot... seeing as how both Apple and Dell are rebadgers, and both companies have Microsoft as a key software parner. No sir. I don't like your broken logic at all.

will84 -July 26, 2007

@jersey - you are right...that was also a big snafu. engadget has been floating rumors that a 3G iPhone will be ready for the Christmas season. Imagine being one of the folks that has already bought one(more likely the parents bought it) and is stuck on the EDGE network...only to find out that your neighbor in Study Hall got a new 3G iPhone for Christmas. Now your parents will need to go out and get you a new $600 phone, just to keep up!!! But, that is standard Apple marketing. --tayme

tayme -July 26, 2007

We should all remember that Apple approached Verizon first. No doubt, they would have had some EV-DO goodness inside if Verizon had agreed. Given the track record of Apple, Verizon did not want to lose so much control of the process. So Apple was kind of stuck going with a second rate carrier at that point. Hence AT&T (nee Cingular)

Dipsh t Admin -July 26, 2007

"Given the track record of Apple, Verizon did not want to lose so much control of the process. So Apple was kind of stuck going with a second rate carrier at that point." I can't see any carrier want to give away that much control. AT&T has alot of vested interest in Apple being as secure as they say they are now. Right now Verizon is putting their 'let's see what happens' money into FTTH, and as they should. Cable has had the bandwidth advantage for too long, with 30mbps being 'trivially easy' for FTTH, this should make cable internet finally boost their bandwidth as well. And let's not forget those gorgous optical switching latencies either, it will be a magical day when the RTT between TinyTown, USA and Nowhere, AUS is 50msec.

will84 -July 26, 2007

"Now your parents will need to go out and get you a new $600 phone, just to keep up!!! But, that is standard Apple marketing." um....the 3G iPhone that's a actually "2G" iPhone?!? i bet Greenpeace will be shuddering to know that when the new model ships, people will be goaded into buying the new revision and chucking the old one into another landfill when the battery dies. "seeing as how both Apple and Dell are rebadgers, and both companies have Microsoft as a key software parner." ....you mean how both of them have their notebooks made by Quanta? XP

Waethorn -July 26, 2007

"this should make cable internet finally boost their bandwidth as well" currently i get pretty close to 7Mbps down, 450Kbps up (technically it's supposed to be 384Kbps, but most speed tests don't say that) for about $47CDN with a 60GB/mth bandwidth cap on Rogers Cable. DOCSIS 2.0 (which is what they currently use) is supposed to support 40Mbps down and 10Mbps up. there is no fiber optic consumer-level internet service in Canada yet on the open market, although they may be testing it in undisclosed locations. IPTV is supposed to be "coming soon" with this service as part of Bell Canada's partnership with Microsoft, but from several Bell tech's (not that that means much), it's supposed to be 25Mbps, so who knows at this point. all i know is that my 7Mbps is still better than Bell's 3Mbps aDSL that i switched from for the same amount of money - and i'm not in a major urban center either. XP

Waethorn -July 26, 2007

You know, I have been absent a while. And I can see exactly why in this comment thread. Apple had a really good quarter. The Mac is growing, the iPhone sold well in two days, but, with a few exceptions, all you guys have are more insults. No one, not even you Tayme (who I usually think of as more mature than others), could muster up a simple, "Yep, let's give them some credit - they did well." It's the same ol' stuff. If you're read one of these threads you've read them all. They're all about Apple. Which, quite frankly, says more than any market share figure or quarterly results sheet ever could.

bdkjones -July 27, 2007

Well its about damn time Apple did something with actual computer sales. With Apple so far behind, it had no choice but to come up. But I don't know whether to laugh or shake my head. Vista has essentially assimilated OS-X and has basically rendered Apple Macintosh's obsolete. I'd be more excited about a new Linux suite before I get excited about Apple do anything with their computers. I can see why Verizon decided to pass on IPhone. The battery issue was an obvious "Here's Your Sign" moment. All quality cell phones have interchangeable batteries. If it can't support 3G, I seriously doubt IPhone would have been EV-DO capable by launch. The blairing security vunerabilities and multiple hacks shows just like OS-X, anything made by man can be destroyed. No keyboard for text messages was an obvious, "Dee-Dee-Dee!" Other features that are not present on IPhone just made Verizon stay with proven makers of cell phones. Eventually they'll come out with a phone that makes IPhone look like ICrap. But I will give them credit, the Intel switch was 15 years overdue. It has breeded much better hardware and in return the OS is much better. However, the number of vunerabilities are raising. Its not as invunerable as Apple or the Mac boys want everyone to believe. Again, where that OS-X PC edition, Apple?

subzerohitman721 -July 27, 2007

Sub: Were you, by any chance, one of those people who, when the iPod launched said, "But it doesn't even do FM Radio! And you can't swap out the battery! And it only syncs with iTunes! And it sucks! My creative player can do so much more!" Yes. Yes I think you were. And secondly, how does having an Intel chip inside make OS X "much better"? Nothing actually changed - OS X is the same OS on both PPC and X86 platforms. And yes, there are vulnerabilities in OS X, but none of them are being exploited. So, Sub, what the hell is your point?

bdkjones -July 28, 2007

"OS X is the same OS on both PPC and X86 platforms" ....just not nearly as fast on one as one the other. i seem to remember that Mackie's like to criticize Windows Vista performance on low-end machines (ie. Celeron's and P4's) with little memory (512MB), when Leopard hasn't even released yet and yet Apple is telling partner stores to recommend the same system configuration as most PC OEM's are recommending for Windows Vista - a Core 2 Duo with AT LEAST 1GB of RAM (but 2GB is preferred). i can say that without a doubt there will be G3 users with 512MB saying that OS X "runs fine", wherein they don't believe that Windows Vista is just as capable just meeting the low requirements on older P4 systems (Hyperthreading actually gives Vista a huge efficiency boost too). there was an article i read on ZDNet a couple weeks ago about Windows Vista Home Basic on such a system, but i can't find the article now (little help?) XP

Waethorn -July 28, 2007
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