World of Apple
This is a static archive of World of Apple, published by Alex Brooks between 2005 and 2015. Nothing here is live or updated since original publication.

Quarter Four 2006 Financial Results Summary

  • Best Mac sales on any quarter ever
  • Profit margin 12.4%
  • Macs were 54% of total revenue
  • Unprecedented demand for portable computers, over 60% of total Mac shipments were portable Macs
  • Channel inventory of iPods was within range of 5-6 weeks
  • iTunes accounts for 85% of songs downloaded in the US
  • Apple Retail Stores revenue increased by $1 billion, 165 stores open
  • Average revenue per store $5.9 million
  • 50 percent of customers in stores were new to the Mac
  • Most successful Back-To-School quarter ever
  • Tax rate for Quarter 24%
  • Cash balance is $10.1 billion
  • 5.3 million Macs sold in the year and over 39 million iPods sold

Questions and Answers

  • Very confident of future product pipeline, confident that customers will be pleased
  • Expect music sales on iTunes Store to pick-up pace into the Christmas season
  • Opened 41 Retail Stores in 2006
  • Apple not pleased with Mac sales activities in Japan, working on improving this
  • Strong iPod sales continue in Japan
  • iTunes Store still run at break even level
  • Expected to regain Mac inventory levels before the Christmas season, no forecasting available
  • Leopard will be shipping in the Spring
  • Customer reception to new iPod nano "exceptional"
  • "Blow out Mac Quarter"
  • iPod gross margin above 20%
  • Over 1 million downloads of Boot Camp
  • Apple continues to believe that "video will be big"
  • iTunes Store operates in 21 countries
  • 5800 employees in Retail Stores