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Wednesday, January 18, 2006

Apple 1st Quarter Predictions

O.K., posted this late waiting for the conferance call.
Lets start this,

Macintosh computer sales where up 20% year over year. Apple sold 1.254 million macs, 667,000 where desktop systems and 587,000 where laptops in quarter 1 (Q1) and saw lower than expected Intel shift effect on Mac computer sales.

Apple's new Laptop called the MacBook Pro will ship in February, but Apple said they may not be able to meet the "overwelming" demand. Apple hopes to meet demand of the new iMac Intel Core Duo which is now shipping. When asked if Apple will discount non Intel-based Macs? Oppenheimer replied, "we will continue to ship iMac G5, Power Mac G5 at this time".
Apple will sell iMac G5 and PowerBook G4 15-inch as "while supplies last".

Also Tim Cook added "we saw a pause in sales as we approached Intel transition. But Mac sales exceeded expectations in 1st Quarter".

It seems Apple is also getting plenty of orders for both Intel based iMac and Macbook Pro. It seems Apple is transitioning to Intel already, and will continue to open retail stores and make "the best personal computers on the planet".

And WALTER S. MOSSBERG seems to agree saying
"It's still the best consumer desktop on the market. It still runs crisply, still is free of viruses and spyware, still has the best operating system and the best built-in software of any desktop we've tested. Given how smoothly the new machine works, and how likely it is to get even better, we would prefer it today over the iMac G5, which Apple is still selling for the same price until inventories are gone. The G5 is still a fine machine, but the Intel model has a brighter future."

With all the positive being said, Apple will be opening Retail Stores in U.S., Canada, UK, and Japan in 2006. Apple is said to be investing in long-term growth. And for us to expect Apple to invest in advertising, marketing, engineering, and more retail stores.

Apple quarterly revenue surpassed all of fiscal 2002. Making $565 million in profits $90 million from retail on over $5.75 billion in revenue. 49% of Apple revenue was from Web and Apple Retail Store sales, with Apple saying Web sales were "significant" in Q1.

iTunes music and video sales have exceeded Apple's expectations. Apple says the iTunes Music Store operated "above break-even." The iTunes Music Store which is in 21 countries covers over 90% of worldwide music market and Holds 83% share of the market.

This could not be said about the failing Napster. Reports are coming out from digital music news that "a dire company situation have emerged". According to their sources inside the organization, a substantial round of layoffs is expected within weeks. and their sources also noting that executives at the company are also reportedly considering various exit options, including a fire sale or liquidation.

All that happening while iTunes gift certificates/cards and direct purchases are selling at 3 million per day. With iPods in over 35,000 outlets, Apple sold over 14 million iPods in 1st quarter. This was accomplished while at the same time replacing two of three iPod lines. iPods are in over 35,000 outlets. Apple could not keep up with supply and demand in certain channels at certain times in Q1 2006.

Apple is targeting a second-best quarter ever of $4.3 billion in Q2 2006, 33% year over year growth. I can see this happening with Apple now will be making a Arabic version of the iPod that will hit the market soon, officials have revealed.

"Apple is working on this. A prototype has already been made available to us," said Elias Abou-Rustom, general manager of Arab Business Machine, Apple's independent marketing company for the Middle East.

"This could be launched in the Middle East in the coming months."

By the way of those wondering about came out as a controversial feature in Apple’s recently updated iTunes (v6.0.2) with it's iTunes MiniStore, which tries to make suggestions for what to buy from the iTunes Music Store based on you’re listening to. Now the MiniStore will only operate if you give it permission first. Now there is a button that provides users with the ability to activate the feature. An arrow also shows users how they can turn the MiniStore on or off whenever they want by clicking a button on the iTunes interface.

The MiniStore now gives an explanation of what it does before you activate it:
The iTunes MiniStore allows you to discover new music and videos right from your iTunes Library. As you select items in your Library, information about that item is sent to Apple and the MiniStore will show you related songs or videos. Apple does not keep any information related to the contents of your music Library.

With Lots of New and good things coming down the pipe, 2006 will be "The Year of the Mac"!!

Don't forget to watch or listen in to Your Mac life tonight and every Wednesday evening from 5:30pm to 8pm PT or from 8:30pm to 11pm ET.
Tonight there will only be a audio feed as their video equipment comes home.


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