Apple First Quarter 2008 Earnings: Best. Quarter. Ever. (But Still Not Good Enough) [So Much Money]
Holy crap, Apple made a lot of money this quarter: $9.6 billion in revenues for $1.58 billion in profits. Or, in English, the most bank ever in Apple history. But it wasn’t enough to appease Wall Street’s insatiable hunger for green, ’cause the stock is bombing out in after-hours trading.) Contributing to that massive pile of loot were 2.3 million Macs, 22.1 million iPods and 2.3 million iPhones—just in the last three months, all of which broke past records. We’re in the conference call that’s supposed to start um, now, so we’ll be updating as it rolls with anything juicy.
iPod’s share for MP3 players is the same as last year—not outpacing the competition in growth despite branching out with multiple lines of iPod, in other words. Also interesting, 57 percent of customers buying Macs this quarter were new to Mac, so Justin Long is apparently appealing to someone. Questions now.
•Effect of iPhone rebate redemptions: “Customers really appreciated it…The [financial] impact of that at this point is largely behind us.”
•”We view the iPod market as bigger than the market for just simple music players,” it’s why they developed the iPod touch. They want iPod to be “the first mainstream Wi-Fi mobile music platform.”
•Objective with iTunes movie rentals is to “run it a little above break even.” They still view it as helping them sell more iPods and Macs.
•Surprise! Contract terms with carriers still aren’t up for discussion. Note to self: Slap the dude who asked.
•Don’t ask about the 3G iPhone either! Bad analyst. No future product talk.
And that’s it.
Best Quarterly Revenue & Earnings in Apple History
Mac, iPod & iPhone Sales Break Previous Records
CUPERTINO, California–January 22, 2008–Apple® today announced financial results for its fiscal 2008 first quarter ended December 29, 2007. The Company posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share. These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 31.2 percent in the year-ago quarter. International sales accounted for 45 percent of the quarter’s revenue.
Apple shipped 2,319,000 Macintosh® computers, representing 44 percent unit growth and 47 percent revenue growth over the year-ago quarter. The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 2,315,000.
“We’re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks.”
“Apple’s revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter’s record-breaking results,” said Peter Oppenheimer, Apple’s CFO. “Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $.94.” [Apple]



I have the patience of a four year old. I don’t want to know about things available in six months, I want it now. OK, really I wanted it five minutes ago, but you get my drift. CES is all about the future and that is fine, but what about things you can take away now? Here is my list of cool things I took away:
Archos TV+ - I got some one-on-one time with the COO of Archos at CES. I’ve got an interview coming up, but will spill some of the beans here. This thing is awesome. Fully WiFi, it taps into your home network and opens up a whole world of possibilities. No longer just some odd French company, Archos is kicking up the competition and will give Apple TV (take 1 or 2 or 3 or whatever) a run for their money. And they’ve got some secrets that will add to make it even more amazing. ($249 80GB/$349 160GB)
MX Revolution Mouse: I’ve been reviewing this gem for a little over a week now and am amazed how much I like this curvy, sexy-looking thing. My impression of Logitech has changed so much in the past 6 months, from a maker of me-too products to one of an organization that is focussed not only making things look good, but also perform flawlessly. Look at this thing: it looks like a sports car to me. Sexy. $99 (though, Amazon has it for $79).
iPod Touch: One of the few products almost everyone displayed except, you know, the maker who didn’t show. It seems everyone had an iPod dock or something made specifically for the iPod touch. It became the ubiquitous device of the show and you really couldn’t swing a dead cat without hitting a touch display. But that really wasn’t the deciding factor, it was watching my Gadgetell mates move swiftly through their applications on their iPhones that cinched it for me. Too much of my info is on Google, which my Blackjack quasi-smartphone just doesn’t like to get at. The iPhone and therefor touch can access the info easily and in a much more viewable fashion. Calendar/Gmail/RSS is all so easy, within WiFi range of course. The touch has become an indispensable tool for me now.
IT Reviews has a review of the Nokia E51 and writes, “This is a 3G handset with HSDPA support for fast data downloading, but no front-facing camera for two-way video calling. You can make video calls, but you have to use the back-facing 2-megapixel camera, so can only show the caller what you can see rather than your own face. Some might think that a blessing!”
Portal’s Weighted Companion Cube was the real Gadget of 2007, but it lacked that essential "If God Then Necessarily God"-quality of actual existence. No more! Created by Magnus Persson, the metacrate of our dreams is now a fully-functional Mini-ITX computer, with 2GB of RAM and a 250GB hard drive.