| Never mind the iPhone, what about the record Mac sales? |
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| Written by Stephen Withers | |
| Thursday, 26 July 2007 | |
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Mac unit growth of 33 percent on the year-ago quarter was four times IDC's estimate for US market growth and 2.5 times worldwide market growth, said CFO Peter Oppenheimer. Notebook growth was especially strong at 42 percent. He said the overall margin of 36.9 percent was helped by low commodity costs and an increased proportion of direct sales. The company predicts that will fall to 29.5 percent in the September quarter due to costs associated with the 'back to school' promotion, higher commodity costs (notably flash memory and LCD panels), and "product transition" - presumably the expected iMac revamp. The music business accounted for 40 percent of revenue. iPod sales were up 21 percent on the year-ago quarter, and other music revenue (largely iTunes Store sales) was up 33 percent. The iTunes Store is now the third largest music retailer in the US. Although the quarter included just 30 hours of iPhone sales, 270,000 units were shipped. Apple has elected to recognise iPhone revenues over a 24 month period, and no revenue from AT&T was booked for the quarter. The company remains mum about the nature of its arrangements with the carrier. While it took seven quarters to sell one million iPods, Apple expects to reach that milestone for the iPhone during the current quarter, and officials reiterated the expectation of shipping 10 million units during 2008. The iPhone will go on sale in certain European countries before the end of the year, and more details will be provided by September.
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