Apple reports fiscal Q4 earnings: $1.67b profit, Mac sales way up, iPod sales down, 'great new products' for 2010
By Darren Murph 
posted Oct 19th 2009 4:50PM
posted Oct 19th 2009 4:50PM
Stevie J himself is quoted as saying that Apple is "thrilled to have sold more Macs and iPhones than in any previous quarter," and in case you haven't noticed, the holiday quarter hasn't even been completed yet. Oh, and if you were looking for bread crumbs as for what's on deck, chew on this: "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010." Great new products, you say? Would one of them happen to include some sort of, say, tablet PC?
Catch our updates after the break...
Peter Oppenheimer, Apple's CFO, just hopped on the line, and he's obviously thrilled with the "record-breaking" quarter, and judging by after-hours stock movement, we'd say Wall Street concurs. Speaking on Mac sales, this quarter's sales broke the prior quarterly record by over 400,000 machines, with portable sales growing some 35 percent and representing 74 percent of all Macs moved. He also informed us of a 42 percent uptick (year-over-year) in Asia-Pacific, not to mention a 12 percent increase in US education Mac sales (which marked the highest ever in this category).
Speaking on the iPod topic, he noted that 50 percent of all buyers are snagging their first iPod, and iPod touch sales are up an astounding 100 percent as it rides the wave of popularity that is the App Store. Peter also commented that Apple's share of the MP3 player remains at around 70 percent, and the 7.4 million iPhones sold represented a company record for the quarter. iPhone sell-through was pegged at 38 percent, and he noted that iPhone sales would begin in China "later this month." Confirming news we already knew, he said that carrier relationships would expand in "the UK and Canada," and he said hopes were high to get the handset to South Korea in the near future.
Moving on, he stated that Apple's retail stores also had a record quarter (noticing a trend?), with about half of all Mac buyers in stores being first-time Mac owners. For the entire year, Apple recorded 12 percent growth in revenue and 18 percent growth in net income, all during what most would say was the worst recession since bread was sold in unsliced fashion.
Mr. Oppenheimer just opened the floor to questions... and most everything is pretty low-key (read: uninteresting). He's explaining that demand for the iPhone has led to low stock in quite a few markets, and he's calling this quarter a "blowout" one for Mac portables. We're told that Snow Leopard upgrades have basically "doubled" compared to the amount of folks that upgraded to Leopard during the same five-week-after-launch period, though box shipments are expected to slow as the amount of loyalists living without 10.6 dwindles. When questioned about the benefits (for Apple) of having exclusive iPhone relationships, Tim Cook (COO) noted that you can "generally have a level of innovation" that you can't have with a multi-carrier arrangement. Also, he mentioned that an "exclusive carrier may be willing to invest more," though Apple has "found no lack of companies wanting to sell iPhones."
And that's it! Sadly, none of those with a spot to ask a question bothered to really press Apple about the "new products" quote, though we have to say all that talk about channel inventory and corporate adoption rates was downright thrilling. Still, when Steve comes out and makes a mention like that, you know he means business. Or, at least we hope so.
Eventually everyone already HAS an ipod. Or has had one fail and doesn't want to buy a new one.
Probably.
Either way Apple is going to spin this that iPod sales aren't down, they're..... napping.
THE RECESSION IS MAKING PEOPLE STUPIDER!!!!!!!
I just has to say that...
OR
Their following already has a perfectly-performing 1,2,3 or 4 year old Mac, as well as a 1 or 2 year old iPhone that does all their on-the-go media playing.
At least that's my scenario. I'm eligible to get out of my AT&T contract in June, and as of now, my 3+ year old C2D MacBook works absolutely perfectly. There's just not any reason for me to shell out more money for things I don't need (errr.... more like things I don't even THINK I need, lol), especially in this economy.
In order for me to buy an Apple phone within the next year, iPhone 4.0 has to be about twice as powerful as it currently is. Higher resolution, HD output, wireless syncing, and MULTI-TASKING WIDGET SUPPORT.
In order for me to buy another MacBook, they've gotta release something for $499 or less.
And lest we forget about the tablet, lolz. This thing needs to cook me bacon in the morning, for me to believe that it's something I would want to own (and pay a premium for).
By now most people have iPhones and don't see the need for a standalone iPod.
Doesn't this include the new accounting rules?
The way this thing reads...... I hope you changed your pants.....
Detox (Paul).
They're just computers, and the fact that you have a compulsive need to blow your trumpet about Apples growing sales just because you prefer one over the other shows what kind of an ignorant egotist you are.
Your first post had little to do with the article itself - it was pretty much about you and your ego (look up there). SAID POST HAD NO RELEVANCE TO THE ARTICLE.
What the hell is wrong with you? CAN YOU JUST STOP BEING SUCH A GOD DAMN PRICK?
Oh damn, that ^ was supposed to go in Paul's post (below).
*Hits self for pressing the wrong reply button*
Judging by the way they're speaking, doesn't sound like a ny new APple products are coming til' next year.
No, these numbers are the traditional GAAP reporting methods. The new subscription accounting rules will be phased in. If Apple had incorporated the iPhone sales directly into the quarter (instead of deferring, i.e. non-GAAP reporting), the results would have been $12.25 billion revenue and $2.85 billion of net income (compared to $9.87 and $1.67 billion).
What's a billion here or there?
Wow, tiredness does kill. My typing abilities that is.
So true.
The iPod is the best selling MP3 player ever. New iPods come out every year. A lot of people bought one *last* year.
No worries. People freak out predicting the death of the iPod.
@Michael, good point, it's pointless to to keep buying new iPods considering they get a new refresh every year.
God, you guys are so boring. You guys should be rocking the scene like you're at a Windows 7 launch party.
Someone on another site posted this:
"MS should quickly produce a touch screen iPod clone, open an Apple-like retail store chain with a sort of 'genius bar' - then try and appeal to the youth market by bringing in some ex-Disney starlet to spice up the launch - finish off with a revamp of their OS with some OSX features, and get one of their PC manufacturers to produce an ultra-thin laptop clone of the MacBook Air... Oh, that IS what they're trying to do!"
Now that's ENTERTAINMENT!
It's called the "saturation point", but yes, you are 100% correct and that is the main reason we are seeing a decrease in iPod sales.
Oh, oh oh oh oh oh oh oh oh!
It's magic!
Oh, oh oh oh oh oh oh oh oh!
It's magic!
Look at the sun way up there in the sky!
Shining forever!
The world is so bright!
Sort of like: Eventually everyone already HAS a Toyota. Or has had one fail and doesn't want to buy a new one.
Except that: (1) not everyone really does have an iPod (or a Toyota), you saying things doesn't make them true, and (2) even after failure many people have had a GOOD experience and will buy another iPod (or Toyota) because they realize product failure at some point is inevitable. I'm going to go on a ledge and say that both Apple and Toyota outlive you.
You cant expect ipods to last for very long time. Im on my third on in six years, averaging at two years per ipod i say it isnt half bad (for 250 bucks). Yet i still have to buy a new one. A costumer who owns an ipod is more likely to be a repeat costumer because in the long run all ipods fail. So if your theory was right, after the ipod potential life cycle, apple would lose 80% market share because noone buys ipods anymore? Plus i think there are more ppl that dislike the zune and go back to ipod than the other way around (not that the zune is the only other player)...
I am proud to say: "I've never owned an Apple product" I am an Androidic-PC
I don't understand the iPod thing.
I bought from China a beautiful player for less than $100. It has a Wolfson DAC for the audio which rocks in so many ways. I was listening to some music today in FLAC and OGG with no conversion necessary. It has a gorgeous 3.5" touch screen and plays movies in almost any format you throw at it. No conversion necessary. Media is drag and drop with no silly "sync" requirements - I can use it as a USB drive. The UI is fully customizable and can be modified with new themes, icons, backgrounds, etc. It has FM radio. And an e-book reader.
Why would I buy an iPod?
Sounds like a lot of people here are getting bitch-slapped by one another. Settle down, girls. There's enough Apple products for everyone (if they can keep up with demand). So fabulicious. Hugs and kisses to all the rude Windows sheeples. I can't wait to see Monkey Boy Ballmer ranting about market share and rounding errors while spewing saliva and sweat.
@Truth
I'd agree with you on everything but the Mac Air statement. That one is just ridiculous!!!!
@Science is Cool; You do realise that the DAC in the iPod/iPhone is a Wolfson too? Didn't thinks so...
@simon.banyard: but an iPod/iPhone costs more than $100
It's a shame the iPod is a dying breed considering what it did to bring Apple into the limelight.
Well, at least they can bank on the iPhone.
Do you not realize that the iPhone IS an iPod?
it is also:
2) a phone
3) a revolutionary internet communicator
(sorry, had to!)
Only thing that will beat an iPod is an iPod or an iPhone.
Apple has established their foothold. There's no longer anything to fight. Just because sales are down, I bet you nobody elses MP3 sales will be up.
And this is coming from a Zune HD owner.
By "beat" you mean in sales right? The Zune HD "beats" the Ipod touch when it comes to pure performance. Apple better come out with some good stuff because Andriod on Moto's Droid is looking very promising and most of us here know how huge Windows 7 is/will be. There is competition for Apple's products on all fronts so I think we will all see better products across the board in the coming year.
@JXC
Of course, as a Zune HD owner I can not lie and say any of the iPod's are better at what they are MEANT to do.
But yes, sales-wise...nothing will beat it but it's own products.
Apple doesn't include phones into mp3 player marketshare.
Why?
If it did, Nokia would be the market leader in mp3 players.
@crawdad: lol, did steve jobs really think he was fooling anyone with the "Revolutionary Internet Communicator". What the hell is would that have been exactly? xD
4. It is also about to be eaten by several HTC devices (HD2, Dragon, etc.)
It sounds like everyone's under the impression that iPod touch sales are down. If you read the sales info, you'll see that touch sales are up. It's the other iPods that are bringing the whole iPod group's sales down.
@Crawdad689
it is also:
4) a great game machine
You do realize that over a YEAR ago Apple said that sales of the iPod Touch would start cannibalizing sales of the standalone iPods, right?
Apple stock broke 200 in after hours trading. Dammit. Shoulda bought when it was down in the gutters last January.
you and me both bro
nearly every stock was at all time lows in january.. you could have bought many other stocks (including apple) and made huge profit :)
recessions are a beautiful thing
I bought at $16, before the stock split. :)
Bigger picture news. People are buying stuff again, in this case, electronics. Maybe Apple's numbers are an indication of bettering times (has fingers crossed).
We bought at $80 a few months ago!! Weeeeeeeeeeeeeeeeeeeeee
Good numbers. iPhone sales are impressive and in line with the 3G's launch. I'm surprised the iPods dropped that much what with the refresh and all. Looks like saturation has set in there.
And the Mac sales of over 3 million are pretty awesome too - I had this pegged at 2.8 million tops so kudos to Apple. Looks like the price reductions work.
One thing though - isn't just under 50% about normal for ex-US sales?
Considering the response to said refresh, I'm not too surprised. If you didn't already own one then there wasn't anything new to draw you to it and if you did then there wasn't a big enough jump to make you replace it.
I feel its not so much saturation, but the lack of innovation that's hurting ipod sales. I would love to upgrade my nano, but the last few releases haven't offered a killer app. Integrated bluetooth anyone?
The FM radio and mic were good adds, lower price and more memory is always welcome, and the camera is nice, but its not enough to sway me.
They need to focus on making the nano completely wireless. Wireless charging, wireless syncing, bluetooth stereo, etc...
I read somewhere, average consumers don't upgrade unless they get a device perceived to be 10x better than what they currently own. Arbitrary number, but you get the point.
Few people were expecting iPod Touch with Camera (include me) and it finally was a not go, so not much sales, I decided not to buy the new iPod Touch, maybe next year when it comes with camera and a faster and powerful processor.
...doesn't Mark have sort of a point here....?
It's sorta like how some people didn't want a DSi at the time because of loss of GBA and the banhammer on the flashcarts. Or people not wanting the N96 because it was too big and weird, and decided to wait for the N85.
The lack of iPod growth is due to weaker sales for iPods excluding the touch. iPod touch sales were up over 100%.
IIRC last quarter actually the entire last year the sales of Apple dropped massive due the recesion putting these numbers in context it means only a mere recoup of the last years losses. So sure.. Apple made a few bucks but the succes should been seen over time not just 1 quarter of succes. If you look back 1 or even 2 years you´ll see that right now they are basically where they were 1,5 years ago. Which isn´t bad but it also means that they dont outperform other companies.
Regarding the iPod it´s also nothing new, since the introduction the market share of hdd iPods always moved between the 70 and 90%. Actually in the SDD market apple is a small player. Sure they sell a lot but the ammount of cheap players in Asia as well in Europe overtakes way that share. Though it seems that Apple is moving more and more into the software where they generate serious income compared to the hardware which seems to be lacking more and more.
Generic Microsoft sucks comment.
In 2009 it should read:
Generic Apple sucks comment.
generic your comments suck comment
Generic "Linux sucks" comment, just to keep the thread going (^^)
*Generic gravity sucks comment*
-generic everything but what you write about suckzors comment-
I'm so sorry I have to do this
I'm really happy for you and I'mma let you finish, but actual comments are the best comment of all time, OF ALL TIME!
Obvious generic "your mom sucks" comment...
I also apologize for my poor grammar. Bollocks
Generic richb93 comment coming along and ruining the thread =(.
Generic Detox comment bashing Microsoft, but God forbid if we ever bring up one of Apple's failures
Generic running and hiding comment, because he's coming this way
Generic Engadget is a Generic Fanboy comment.
*face palm*
Didn't someone comment something similar on Joystiq the other day, only less.. awkward?
Generic C-C-C-Combobreaker.
Sorry in advance..
C-C-C-C-COMBO BREAKER!
Doh!
Generic racist, sexist, bigoted comment where the user as no idea what race, gender, or orientation of another user because anonymity is the favorite choice of the Internet.
^Generic Winner of the thread, forevar.
First.
Ignorance is going to be the death of you...
Very good news in general.
Only a 7% increase in iPhone sales is disappointing in such a growth market though. That's below the industry average.
what do you expect when there's gazillions smartphones with better features from the likes of Sony, Samsung, HTC, Acer, Dell, AND everyone else who wants a piece of the smartphone market....
........yes and including Mr. Do No Evil.
Actually it's not bad at all considering Nokia dropped 6% although it suggests Apple have filled demand in their current markets. China should bolster numbers but they'll need to be on their toes for the next version to keep public interest going.
I'd like to think China would bolster demand...but I just don't see it. Maybe I'll be proven wrong though.
The 3GS was supposedly constrained in many markets. Of course, its naturally constrained in the US by the pathetic network.
Google and the "do no evil" BS will, in the fullness of a few years make chancellor palpatine look like he was actually the apprentice.
There's an old saying about offering up info that wasn't asked for. Did we ask if you were evil Google, hmmm
anyway, that commentor threw me off on a tangent
Not surprising considering a $1,000 laptop with 2 GB of ram and 160 GB hard drive that probably costs $400 tops to make is a 'cool' thing to have.
Yet people are still buying them :)
@Ben,
Because it's cool and trendy to have them right now, just like it was HP/Dell before them and Gateway even before them. The question is if Apple will be able to continue when the fad dies.
@Ben, A lot of people in this world are still morons! Even Einstein knew that.
@ Matt
If what you say is true, then during this huge economic recession sales of Macs should have dropped like a rock. But as you can see, the opposite happened:
Consumers are choosing to buy more and More Macs instead. They are realizing that the Mac experience is far more than a collection of specs and that the quality of Macs and the quality of OS X is the superior choice. Consumers now see that they no longer need to put up with that bag of problems called Windows.
>> Would one of them happen to include some sort of, say, tablet PC?
Shouldn't that be table Mac :)
"I'm a PC" :)
Wonder if Stevo has the names "TabletMac or TMac" already registered with the Trade office for use on future Tablet...Mac....
The Apple Hating Commentators.
Wrong about the Laptop Hunter Ads. Wrong about how Apple would do in a recession. Wrong about the Pre. Wrong about Android eating Apple's lunch. Wrong about WinMo 6.5.
You guys have been wrong about everything. Remember that.
WOW....What recession?
aapl trading at all time high.
Or maybe your just listening to the wrong people...
The loudest are rarely the correct ones...
Are ipod sales down because there's no one left in the world who doesn't have at least ONE?
I never purchased or was given an iPod. I would consider my iPod exposure time (using interface) at less than 30mins since 2001
I do have an iPhone though. iPod never interested me. I had a Sony NZ90 back in 02 which was barely bested by the original iPhone.
NZ90 was nice! My fave though was the UX50. Wish Sony wasn't in bed with Ericcson, so we could have seen something like that with a phone back in the day.
The Clie line was spectacular.
Apple said it's because iPod Touch sales are cannibalizing the standalone iPod players.
http://www.engadget.com/2009/07/21/apple-asks-what-recession-records-best-non-holiday-quarter-i/
They weren't wrong about you being unable to stay away, Chapel.
How long before this account gets nuked?
mac tablet - great new product
smaller iPod Shuffle with no buttons, IPhone and Ipod Touch with very marginal differences over the previous generation - great new product?
maller iPod Shuffle with no buttons, IPhone and Ipod Touch with very marginal differences over the previous generation - product.
thats better
THE RECESSION IS MAKING PEOPLE STUPIDER!!!!!!!
Clearly
very good assumption.. either that or apple is cooking the books
Now everyone knows you could counter your "Apple Hating Commenters" with "Windows Hating Commenters" so lets not go there.
Congrats to Apple and their success.
Good job on the Q4, Apple. Too bad about the iPod sales, I guess it's because a lot of people wanted a camera in their Touch. But that's a road we don't want to go down again...
By the way Darren, Mac Tablet ain't happening; it's just an e-reader. Get a Modbook. Trust me you won't be disappointed =).
When they say iPod, aren't they referring to the iPod classic mostly though? I see tons of kids with iPod Touches.
Nah, it's the entire iPod line - that's why I find the results a bit surprising.
Actually iPod Touch sales are UP 100% year-over-year.
http://bit.ly/3IwVL6