10/19/2006 - Apple Shows Strong iPod Sales During Recent Quarter

Apple sold 8.73 million iPods during its latest fiscal fourth quarter, slightly above market expectations. The tally represents a 35 percent jump over year-ago figures, and a 7 percent increase sequentially. During the previous quarter, Apple shifted 8.11 million players. Overall, the company posted revenues of $4.84 billion, and a net quarterly profit of $546 million, or $.62 per diluted share. That surpassed market consensus figures, and represents a 31.5 percent revenue increase over the year-ago quarter. Profits jumped 27 percent.

The iPod increase happened without a new product in the marketplace, reflecting sustained demand. Heading into the holiday quarter, Apple could be poised for an iPod boom, even though the company merely refreshed its existing lineup ahead of the season. Meanwhile, Apple sold 1.61 million Macs, a 30 percent gain over figures from last year. "Selling more than 39 million iPods and 5.3 million Macs while performing an incredibly complex architecture transition is something we are all very proud of," said Steve Jobs, pointing to figures for the fiscal year. The company finished its fiscal year with over $10 billion in cash, and CFO Peter Oppenheimer projected current quarter revenues of between $6.0 to $6.2 billion, and earnings per diluted share of between $.70 to $.73.

Story by news analyst Alexandra Osorio.