Apple bucks recession, records best non-holiday quarter in company history
By Darren Murph 
posted July 21st 2009 5:18PM
posted July 21st 2009 5:18PM
The company also confessed that the iPhone and iPod touch was cannibalizing traditional iPod sales (defined by Apple as the "shuffle, nano and classic"), but so long as those purchases stay within the realm of Apple, we're sure it doesn't much mind. The firm was also quick to boast of a 626 percent increase in iPhone sales from this quarter a year ago, but considering that its handsets were only available in a handful of nations then compared to scores of countries now, we still maintain that next quarter's iPhone sales will be the real measuring stick. Still, Peter Oppenheimer -- Apple's senior vice president and Chief Financial Officer -- did admit that the company was currently unable to meet iPhone 3GS demand in virtually every country where Apple is shipping it to. Which is funny, since we haven't heard of too many Americans that are still having trouble locating one. When talking about iTunes, we were reminded of the 1.5 billion total applications downloaded from the App Store, while some eight billion jams had been purchased (both since launch). In fact, Apple claimed that it was "years ahead" of rivals when comparing the App Store all those other application markets. Finally, Mac sales scooted up some four percent with a grand total of 2.6 million unit sold, which went down as the company's best-ever June quarter in terms of personal computer sales.
When asked (again) about the possibility of Apple introducing a netbook, we were reminded that Apple "isn't out to make the most computers, just to make the best computers." Furthermore the suits at the company have yet to figure out how to build "the best" at the "$299, $399 or $499" level, once again extinguishing any hope of a low-cost Mac laptop anytime soon. He went on to say that "some customers buying these [netbooks] become disappointed / disenchanted," asserting that Apple is simply striving to make the "best, most innovative" machines and "give customers the most value." To quote Mr. Oppenheimer when responding to a question over an iPod-like device with a larger screen:
"I never want to discount anything in the future and never want to talk about new products. People want a full-featured notebook, some of the netbooks being delivered are very slow, have software technology that is old, don't have a robust computing experience, small display, cramped keyboard, I could go on but I won't. We'll only play in things where we can be very innovative and be proud of."Okay Apple, we get it -- you're not interested in the netbook space. Gosh.
Never used a Mac, or homophobic?
Aww, only 5.2 million iPhones? Apple barely beat out Palm Pre ...what's the total for Palm Pre now, 500k yet?
Congrats, your phone of choice sold more than someone else's phone of choice. You must be so proud. (I own neither phones and have no vested interest in either but reserve the right to reply to douchy comments.)
LOL, I have an even better commercial.
Paul A. Chapel dies in a fire.
She is creepy as all hell. Besides that though, you have to admit that AT&T's network coverage sucks. 1/2 the time I am trying to look at the real internet I am stuck waiting for it to talk to the damn network.
@Duke: When not looked at closely your profile pic looks like Master Chief. It's always disturbing to look closer and realize it's a cat.
You should see that cat when it has a gun! Talk about disturbing.
Good set of results there and quite interesting - it's clear the Macbook sales have benefited from a product refresh and a drop in prices and hopefully this will continue. The iPhone is no surprise - I don't get why people don't realise it's an incredibly popular device and a 15 million a year seller (although I don't think it'll go much higher than that). iPod decline is no surprise either. The Shuffle was a disaster and converged devices are definitely the way forward.
Good stuff and hopefully a sign that the wort of the recession is over.
Ah, smell the salt from the sea of a billion Apple haters' tears...
GJ, Apple. Suck it, haters.
"The real internet"
Because there is some other internet out there that anything not an iPhone uses?
I think some people are believing the marketing they are hearing a little too much.
If I had the money, I would pay to have @rcam's commercial idea brought to life.
Wonderful. Brilliant. Genius.
@Sy
Try and not to rub their noses into the dirt or they'll run home crying to their mamas that their item of preference is subpar in nearly every respect when compared to the iPhone. Who cares how many Pres or Nokia N97s are sold? It really doesn't matter because neither of their unit sales or number of apps amount to a hill of beans. Go Apple and make me some more money.
@iphonerulez
"Go Apple and make me some more money."
You truly are delusional.
This is getting old. Paul is a douche with a huge superiority complex. The end.
As Maverick pointed out, nobody said the iPhone wouldn't sell we'll and everyone is entitled to their opinion on the phone. Just because you think it's best doesn't mean it is. Get your head out of your ass and stop being such a turd flinging moron.
I think the point which needs to be made here is:
No one cares. If you do, then stop caring. It's a dam phone.
They can't keep up with the demand of the iPhone. Crazy.
I bought mine 2 weeks ago at an Apple store, they had plenty of stock.
Don't listen to everything the internet tells you.
Everywhere I go, places that have Apple products, have tons.
Hell, they are still trying to sell those last year Shuffles.
In Mexico, a lot of Apple products being sold are sometimes up to two years old. Maybe they ship the overstock?
If you heard it or read it, then it must be true, especially coming from people who wants to sell you stuff...
iPhone 3GS is completely sold out in most places across Canada, can't dream of getting one from Fido or Rogers (by phone or internet, might have luck in a local store) in the next month at least. It seems that Apple overestimated demand in the US but underestimated most other locations...
No discussion on the PC sales, what is there core business?
PC? MAC PCs are dead @Cupertino, it is just in the inventories for legacy/heritage purpose.
Apple's core business is any business that makes them money.
Sales of Macs up to 2.6 million, up 4%.
@ Momo
click the read link sometimes.
"Apple sold 2.6 million Macintosh® computers during the quarter, representing a four percent unit increase over the year-ago quarter."
@ momo "No discussion on the PC sales, what is there core business?"
2.6 million up 4%. Shows how well the microsoft ads are working. Heaven forbid what the sales would have been if the "Laptop Hunters" campaign hadn't aired.
In fact I would go so far as to suggest that the Laptop Hunters campaign is actually working in Apple's favour cementing in the minds of the watchers that Apple is actually the machine to aspire to rather than the cheap stuff the "real people" end up buying.
I wonder how Kevin Turner is feeling today? Perhaps the "call" from Apple legal was to tell them to stop running the commercials BECAUSE THEY WEREN'T WORKING.
Well yeah, but I wonder how many of those sales are down to a product line refresh and the price drop.
Interesting that Apple didn't take this opportunity to deny making the call though.
It was their core business when they were still called Apple Computers Inc. a few years ago. There's a reason they dropped the "Computers" from their name, which is precisely this, that computers are no longer their core business.
"Interesting that Apple didn't take this opportunity to deny making the call though."
They have no reason to. The call was made because Microsoft continued to falsely advertise the price of the MacBook Pro in their ads. Microsoft then stopped running those specific ads. Kevin Turner's mischaracterization of the events and the sensationalist headlines by the likes of Engadget and other sites blew it way out of proportion.
theyre so sad that they wont even mention that, do u remember when they called microsoft to stop running those laptop hunter adds? thats how you know they either gained a little or lost revenue
Apparently, Apple's core business is whatever they can use to drive sales to make money at the moment. That's just flexibility. Likely a lot better than just having nothing to offer consumers. This economy is not fostering desktop sales no matter which company it is. You're right for suspecting poor sales in their computer line, but revenue is revenue no matter which division it comes from and that's what really matters.
My God iTards all over the world ll be on a roll tonite.
I can see Paul A. Chapel, Quix crawling out of their wormholes already
They're in wormholes? My God, Stargate was right...
@Mark lol, I see what u did there.......
Somebody has to keep the trolls (i.e. you) from storming the castle, bjay.
P.S. please don't drown in your Apple-hating tears tonight...
When you say iTards, iDiots, etc, it's akin to saying Micro$oft/M$.
It's not clever, it's not funny, it just makes you look like a cock.
How can Mac sales be up 4% in this economic climate while sales of PCs are down? Those Laptop Hunter ads are supposed to crush Apple and make PCs cool again.
That ad campaign is awful isn't it.
because the recession stopped being the main story on the news (they ran out of things to say), stupid people started believing it was O.K. to blow loads of money on stupid things again.
@MacVista
i can see why apple is doing good, its because they have women wear an ipod for underwear
PC market is pretty much saturated, though netbooks sales are growing. Mac sales, 4% is not that great considering new products and lower prices.
I thought "I'm a Mac" ads would crush PCs. Well, good luck with that. Hope you live long enough to witness it. LOL.
This is why Apple wont make a netbook. It would eat into the sales or their Macbooks - like netbook are eating into the sales of PC and laptops. People woule prefer to have a fully featured machine but at the prices of netbook you just cant resist living with some of the minor shortcoming.
I would say this is more true for the Apple market as most of the users just wanna be seen to own an Apple (power users pipe down I know you are out there as well). Although the would pull in a lot of current netbook owners they would see the sales of Macbook tank.
More propaganda from Apple.......in reality they are losing market share in all their manufactured items
Proof, please.
You're proof. I want some links.
any justification for these claims?
@KeatMP: Of course! He IS the proof.
Actually, there is a lot to be said about these numbers when you look into them:
They sold 2.6 million macs, a 4% growth over this quarter last year, with mac portable shipments rising 13%. If I remember correctly, last year it was about 50-50 between portable and desktop. That means their desktop sales plummeted 17% over last year.
The average selling price for their 'mac laptop' went from $1,440 last year to $1,250 this year, a 14% drop in per unit price, which is likely cutting into their per unit revenue by about 20%.
iPod sales were down 7% compared to this time last year - and it appears they're double dipping to include the iPhone in those numbers.
"Music. 10.2 million iPods, down from 11 million year ago quarter. A few reasons: reduced channel inventory by over 400,000. Sell through declined by 4% year over year. How are we looking at this market? Three categories of pocket product: traditional MP3 players (shuffle, nano, classic), iPod touch, and iPhone."
Apple is a master in gaming the earnings call to get headlines like this.
@GeekPI --
Again, read the statement (and the actual numbers), not just the coverage from websites.
The iPhone is not included in the iPod line. The small (7%) drop is understandable with a similar feature found on the higher-end product. When a customer buys a iphone, they often do not buy a ipod nano, shuffle, touch.
Gib - the quoted area is direct from the conference call transcript.