Apple has just released its Q1 2007 financial results. The company has posted a profit of $1 billion and revenue of $7.1 billion, easily beating even the highest analysts' estimates.
This quarter was marked by both strong iPod sales which boosted Apple's revenue and profits to historic highs. The company was helped by holiday sales, especially regarding iPod sales which represents one of the most requested christmas gift.
Apple sold over 21 million iPod and 1.6 million Macs. While iPod's sales represent a significant increase over last years' record of 14 million units, Mac sales are up only 28% since last year and flat compared to last quarter's.
The company's profits' significant upside of more than 78% from the year-ago quarter is also due to this quarter's gross margin which was 31.2 percent, up from 27.2 percent in the year-ago quarter. Revenue was not only boosted by iPod sales but also by strong sales outside the USA, which represented 42% of Q1's revenue.
Guidance for Q2 remains very conservative though, as Apple's CFO, Peter Oppenheime, is projecting revenue of $4.8 to $4.9 billion.
Apple's shares were down 2.21% at $94.95 during today's regular trading session on the Nasdaq.
MacScoop will be providing a live-updated summary of Apple's Financial Conference webcast which starts at 2.00 pm (PST).
Article being updated...
Webcast coverage:
2:06 pm (PST) - Event starts
- pleased to report stellar financial results
- summary of the financials (as reported above) $7.1 revenue, $1 billion ($1.14 per share)
- Macs growth 28% (3 times IDC's PC growth)
- 57% of revenue for music business
- Apple very pleased of demand on all three iPod models
- 72% of the market share for the iPod according to NPD
- sales doubled for iTunes (over past year's quarter), over 2 billion songs sold
- stores: successful (figures)
- gross margin 3 points higher than guided
- Total cash $11.9 billion
- Guidance: between $4.6 to $4.8 billion of revenue, profit between $0.58 to $0.64 (not sure)
- Very excited about Apple's forthcoming products for this year
- Question on guidance (factoring any pause in demand?): iPod will slow down due to seasonality, and maybe because of iPhone announcement ("too soon to tell").
- Question: any commentary from the SEC on Apple's investigation regarding stock-option issue? No misconducts on Apple's current management, no formal comments from the SEC.
- Question on commodities: "Great time to be a buyer"... "favorable pricing on LCDs and Flash"
- Question on the retail: Apple improved world supply distribution this year, resulting to better sales.
- Question on margin? Is it sustainable? Exceptional margin for this quarter, exceeding guidance
- Question Why Cingular? Because it's the largest carrier, distribution channel...
- Question on Mac sales: we did three times the market growth, we have very very competitive products, it should keep growing
- 2nd Question Mac on sales, share gains? should continue to grow
- Question on gross margin. Can it be sustained in the long term? what about next December? Guiding 29.5 for the March quarter. Among bigger drivers was commodity environment, also used so as to calculate guidance
- Question on iPod sales: We did grow iPod sales faster outside the US. 5 countries with more than 50% of market share, not counting US. Other countries going well.
- Question on the iPhone: guidance counts the anticipated iPhone shipment (may slow down iPod sales)
- Question on iPod sales: very happy with the three models' sales
- Question on Leopard: we continue to schedule Leopard's release in spring, a lot of people working on it.
- Question on unannounced products: "nothing to share with you today".
- Question: Mac sales slowing down in anticipation of Leopard's release? working on expanding the distribution. No signs of major slowing down due to Leopard
- Question Store revenue : 6.7 millio revenue average for this quarter.
- Question: how many distribution points? 40000 for the iPod and 7500 for Macs
- Question on margin iPod/Mac comparison: we don't comment on products specific gross margin
- Question on inventory: Does it include all distribution points? Yes
- Question on the iPhone (battery): We'll provide more details in June
- Question on iPhone's sales expectations: we're targeting 1% of the (1 billion) market. More details as we get closer to the launch.
- Question on Apple TV's opportunity (sales): We'll see as we move forward, it's really too early to tell.
- Question on Mac sales: intend to buy a Mac is increasing. We're thrilled on (Mac sales) numbers
- Question on iPhones cannibalization on the iPod sales: too soon to tell, hard to project, we believe we got a great line-up of iPods shipping today, for the needs of different consumers
- Same Question on the longer term: seeing the iPhone as a significant line-up of new products
- 50% of all macs sold this quarter to PC users? the thing that it's new is that it has expanded out of the Apple retail channel.
- Factors of gross margin: commodities
- Question on balance sheet cash: We maintain out balance sheet cash, for further developments on acquisitions.
- Question on Pro sales: Pro sales met our expectations internally. some pros waiting for adobe to be released, beta released, final coming during second calendar quarter
- Question on product releases strategy: december is a very key month.
- Question on Cisco law suit: Cisco's lawsuit is silly, other companies using the trademark for VoIP, CIsco's trademark is tenuous at best.
- Question on iPod pricing during next months: There is no price issue on iPods (21 million sold)
- Why are you expecting the margins to fall so much? different product mix with the full quarter of shuffle sales, itunes gift cards and software.
- Question on Retail: 42 million profit in the quarter
- Question on iLife release (January): we don't announce future products but stay tuned
- Shan Wu Question. Guidance: we're very confident in our business & strategy
- Charlie Wolf. Boot Camp to become virtualization? will it support 3rd party? : we support parallels today
- Employees head count : 21500 for apple overall, 5 stores opened, we expect to open 7 in the march qtr, 35 in fiscal 07.
- iPod margin question: better commodity environment for all of our commodities. Very strong Macbook Pro quarter, helped the margin.
- video iPod margin? we don't provide individual product margins. iPod video certainly played a role.
Event ends.
(Notice we might rephrase or post some inaccuracies, sorry for the inconvenience occasioned)