Apple Sales Soar 64% in Q2

By Jeff Malester On Jan 30 2006 - 8:00am

Sales of iPod music players during the past holiday selling period boosted fiscal first-quarter revenue at Apple Computer 64 percent, climbing to $5.7 billion, up from $3.5 billion in the same three months in 2004.

Net income nearly doubled for the quarter ended Dec. 31 — when Apple shipped 14 million iPods — coming in at $565 million, a 92 percent rise over the $295 million posted in the first quarter a year earlier. Gross margin in the quarter was 27.2 percent, down from 28.5 percent.

“We are thrilled to report the best quarter in Apple's history,” said CEO Steve Jobs. “Two highlights of an incredible quarter were selling 14 million iPods and getting ready to launch our new Macs with Intel processors five to six months ahead of expectations.”

The 14 million iPods sold in the first quarter accounted for $2.9 billion in revenue, a 140 percent increase over the $1.2 billion reported year-on-year. Shipments of iPods in the year-ago quarter reached 4.6 million.

The Americas posted an 8 percent rise in CPU units shipped in the first quarter, climbing to 515,000, up from a year-earlier 476,000. Revenue for CPUs shipped in the Americas during the first quarter rose 65 percent, to $2.7 billion, from $1.6 billion year-on-year.

The company reported sales of over $1 billion in its Apple retail stores, a first-time event. Total stores reached 135 locations, with 11 added worldwide last year. Revenue per store hit $8.3 million in the first quarter, a 41 percent increase, said Apple.

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