Apple profits soar on strong iPod, Mac sales

Stan Beer
Thursday, 19 October 2006 05:46

IT Industry - Strategy

Apple Computer finished off its fiscal year in spectacular fashion, posting a 27% jump in net profits for its fourth quarter compared with the previous year and smashing through the forecasts of analysts. The results were posted on the back of strong growth in iPod and Mac sales.

The US$546 million net profit on revenues of US$4.84 billion compare with a profits of $430 million and $3.68 billion for the previous corresponding quarter, driven by massive 30% and 35% growth in in Mac and iPod sales respectively.

Apple moved an impressive 1.61 million Macs and nearly 8.73 million iPods in the quarter. The year's figures were just as impressive, with 5.3 million Macs and 39 million iPods sold.

Although Apple has set ambitious targets for Q1 2007 of $6-6.2 billion revenue and earnings of 70-73c a share, it would take a brave analyst to publicly doubt that Apple will hit its marks next year.