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Apple Selling More Macs, iPhones; Fewer iPods

By - Source: Tom's Hardware US | B 21 comments

No matter what it sells, Apple rakes it in.

The iPod isn't as much of a holiday hit as it used to be.The iPod isn't as much of a holiday hit as it used to be.

In the days leading up to Apple's special event, the company released its most recent quarterly results, which it was proud to boast as being the all-time highest in revenue and profit.

Apple posted revenue of $15.68 billion and a net quarterly profit of $3.38 billion, or $3.67 per diluted share. These results compare to revenue of $11.88 billion and net quarterly profit of $2.26 billion, or $2.50 per diluted share, in the year-ago quarter. Gross margin was 40.9 percent, up from 37.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.

Apple sold 3.36 million Macintosh computers during the quarter, representing a 33 percent unit increase over the year-ago quarter; sold 8.7 million iPhones in the quarter, representing 100 percent unit growth over the year-ago quarter; and sold 21 million iPods during the quarter, representing an eight percent unit decline from the year-ago quarter.

"If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company," said Steve Jobs, Apple’s CEO. "The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about."

Stay tuned for coverage of Apple's reveal of a new product at tomorrow's event.

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  • 2 Hide
    XD_dued , January 26, 2010 9:52 PM
    All i can really say is, good marketing. It might not be truthful marketing (ie macs are better than pcs considering macs ARE pcs now) but then again what marketing is, and it certainly makes me mad, but it really does do a good job to the common person. People like shiny lol.
  • 0 Hide
    Impulse Fire911 , January 26, 2010 9:52 PM
    In other news:
    Mac users realize Macs are overpriced and are shocked to discover that pc's can actually be customized affordably.
  • -4 Hide
    vant , January 26, 2010 10:02 PM
    Porsches are overpriced on paper, but that doesn't stop them from posting big gains.

    The main 'spec' that all these paper comparisons miss is the ones you can't see until you use it.

    For example, lift up the new ENVY13 from HP and then compare that to an MBP13. It should be an immediate occurrence of which laptop is higher quality.

    Apple also provides retail locations for warranty repairs, something that other manufacturers lack. No one likes to spend time on the phone waiting and explaining something they can do in person.

    Apple laptops also have strong resale value, something that other laptops lack. My girlfriend just sold her 2007 Macbook for $730 on craigslist (Powercord with no box). Thats just ridiculous. It changes the cost to own immensely, which if you care about that topic, macs are actually far cheaper to own than PCs.
  • 6 Hide
    tacoslave , January 26, 2010 10:43 PM
    My desktop would cost around 6k the way i configured it if i bought it from apple and actually it outperforms it by an immense ammount. In games(lulz @ mac and game in same sentence)it will kill any mac out there guaranteed. I for one believe in building it myself and saving around 5k for a high performance build. Besides if i install osx for around 80 bucks on a $500 build it would outperform a 1k mac guaranteed.
  • 1 Hide
    masterjaw , January 26, 2010 11:18 PM
    No need to bash Apple nor Macs.

    If people want to buy Macs, then do so. Same with people who like PCs. Its just that people are more compelled to buy Macs, especially those who aren't familiar with the specs. As long as the smooth running Mac OS is there, they won't care what's under the hood. But for enthusiasts, what's under the hood are the ones that matters.
  • 5 Hide
    Abrahm , January 26, 2010 11:39 PM
    "Apple sold 3.36 million Macintosh computers during the quarter, representing a 33 percent unit increase over the year-ago quarter;"

    While they tried their best to make this sound impressive and beyond normal, when you consider that the entire computer market saw a 31% increase over the same quarter last year, that number is less impressive.

    Macs aren't taking over, they are just enjoying a rebounding economy, like everyone else.
  • 0 Hide
    jfem , January 27, 2010 3:52 AM
    It should be expected for the ipods to decrease in price based on the law of supply and demand, I plan to buy one this year.
  • 1 Hide
    mj4358 , January 27, 2010 5:11 AM
    "All i can really say is, good marketing."
    Marketing only goes so far; Just accept that fact that people like what Apple Offers.
  • 0 Hide
    jonnyboyC , January 27, 2010 5:12 AM
    Good job to apple I'm personally a pc guy but they sure do make a quality product. Sure it may be overpriced but it's not lightweight on hardware, and it's easy to use and usually have very useful user friendly software. And sure OSX is pretty much a highly modified linux which i didn't even realize till i started messing around with ubuntu. But as a company apple pwn most of what's out there
  • -1 Hide
    mj4358 , January 27, 2010 5:24 AM
    For those who attribute marketing to Apples success.....
    http://brainstormtech.blogs.fortune.cnn.com/2009/10/28/apples-2009-ad-budget-half-a-billion/
  • 0 Hide
    vant , January 27, 2010 5:50 AM
    Keep in mind that Apple's marketing is spread across 3 product lines (Computers, MP3 players, and Phones). Dell only has one (Computers).

  • 2 Hide
    JonathanDeane , January 27, 2010 6:28 AM
    My guess is that as smart phones get more and more capacity the iPod will sell less and less. (iPod touch may offset this since its pretty cool) I mean why have an iPod if I can listen to MP3's on my phone with a 16GB microSD card?

    *looks at his iPod classic* don't worry my phone will never be able to store 120GB's of files like you do.... at least not for a few years.
  • 1 Hide
    Anonymous , January 27, 2010 9:35 AM
    Cant bash macs... If you do your research right and know what you want and what you are going to do with it. Pro mac desktop for photoshop... "no thank you" I build my desktop for $2000 RAID,Insane GPU Core i7 Lots of RAM, Crap load of HDD's or can opt for SSD. Apple will just about rob you blind in this case. How about laptop 14-13" something with decent screen (LED back lit) sturdy design innovation... for about 1300 i was looking at a Think Pad. Being a long time think pad user i went with Uni. MacBook Pro. I went for OS still got windows in it and extremely happy with it. Hey my 2 cents.
  • 0 Hide
    vant , January 27, 2010 9:51 AM
    I agree, the desktops are not a good value. The laptops however is a different story.
  • 2 Hide
    WyomingKnott , January 27, 2010 11:40 AM
    In other news, Ford is selling more Tauruses than Model Ts.
    I think that the iPhone is a sort of iPod killer, eating the high-end model for iPods.
  • 1 Hide
    socrates047 , January 27, 2010 2:29 PM
    What i find ironic about Mac ads is that they try to make it seem as if macs are tailored to your needs, where as under the hood its the same specs; whereas PCs can be really tailored to the individual.
  • 1 Hide
    scryer_360 , January 27, 2010 5:34 PM
    In related news: phones have been capable MP3 players for years, with just as terrible audio quality (speaking to an MP3, specifically).

    I think its safe to say that the MP3 player market just isn't the revenue-pot that it once was.
  • 0 Hide
    zuke , January 27, 2010 7:24 PM
    While I'm a huge PC fan/PowerUser/builder, I can appreciate the rise in Apple's sales. I could just do without the usual snootiness/snobbishness that seems to come standard with ownership.

    Also, a 41% profit margin? Are you kidding me? Wow, Jobs really is a genius for maintaining premium prices & promoting fan-boyism!
  • 0 Hide
    Dirtman73 , January 28, 2010 1:20 AM
    MP3 players are still popular. The problem is that the iPod is an overpriced piece of shit, sound-wise and hardware-wise. Now that there is a glut of competing players out there, people are just getting smarter about choosing which brand they use.
  • 0 Hide
    Dirtman73 , January 28, 2010 1:27 AM
    I'm not surprised at all that Apple is selling less iPods. Consumers are finally realizing that the iPod is an overpriced piece of shit. With all of the competing MP3 players available today, there are dozens and dozens of cheaper models that are superior in every way, including sound and price.
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