Elliott C. Back: Technology FTW!

Apple’s 2006 Q4 Earnings

Posted in Apple, Finance, iPod by Elliott Back on January 17th, 2007.

You can go read about their 2006 Q4 earnings from their release–the highlights:

The Company posted record revenue of $7.1 billion and record net quarterly profit of $1.0 billion, or $1.14 per diluted share. These results compare to revenue of $5.7 billion and net quarterly profit of $565 million, or $.65 per diluted share, in the year-ago quarter. Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter.

Apple shipped 1,606,000 Macintosh® computers and 21,066,000 iPods during the quarter, representing 28 percent growth in Macs and 50 percent growth in iPods over the year-ago quarter.

At work there was a vibrant discussion about whether iPod sales were growing or shrinking, so I decided to produce a graph of iPod sales:

ipods-sold.jpg

The yellow line denotes the moving average across four quarters, so we can factor-out Christmas and seasonal disruption. Oh yes, iPods are a growing product line! I attribute this to the innovation in the low end with shuffles and nanos.

If that isn’t decisive enough, take a look at this graph of ipod $ value sales v.s. Apple’s desktop/notebook combined $ value sales. The moving yearly average is in yellow, again:

ipods-vs-computers.jpg

You can see that for the last year, Apple has been making more money on their iPod hardware alone than on all their computer hardware. Wow. You’ll note that they’re hoving around the 1:1 ratio, but that for the least year they’ve been above the line. It stands to reason, then, that this Spring they’ll fall behind on iPod sales, but make it up with the release of the iPhone this summer, and possibly a new iPod later this year.

For all you fact checkers, I’ve put my data into a Apple Q4 2006 on Google spreadsheets. Update: I missed Q4 2006 but it doesn’t change the results.

This entry was posted on Wednesday, January 17th, 2007 at 8:42 pm and is tagged with google spreadsheets, q4 earnings, fact checkers, macintosh computers, nanos, diluted share, quarterly profit, iphone, google, gross margin, shuffles, moving average, ipods, checkers, disruption, macs, 1 billion, computer hardware, graph, quarters. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.

 

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