Apple Profit Rises 27%; Stock Jumps

This is great news for the faithful, as well as anyone desiring to own a world class computer!

By LAURIE J. FLYNN
New York Times
October 19, 2006

SAN FRANCISCO, Oct. 18 — Apple Computer said Wednesday that strong sales of its Macintosh computers and iPod portable music players led to a 27 percent rise in its fiscal fourth-quarter profit.

The results, released after the market closed, caused Apple’s shares to jump as much as 6 percent in late trading as the company surpassed Wall Street forecasts.

Apple said a brisk back-to-school season was a major force behind the better-than-expected results. But executives cautioned that the report was subject to revision, as an investigation into the mishandling of stock option grants was likely to require a restatement of previous results.

The company, which is based in Cupertino, Calif., reported net income of $546 million, or 62 cents a share, in the quarter, up from $430 million, or 50 cents a share, a year earlier. Revenue was $4.84 billion, an increase of nearly 32 percent from $3.68 billion the year before.

Analysts surveyed by Thomson Financial had forecast Apple to report earnings of 51 cents a share on $4.7 billion in revenue.

Macintosh sales accounted for 58 percent of revenue in the quarter, spurred in part by the new school season’s huge demand for notebook computers, the company said. In September, Apple expanded its line of Macs and completed a transition to Intel-based microprocessors.

In a conference call with analysts, the chief financial officer, Peter Oppenheimer, spoke of “the best Mac shipments by far in any quarter in Apple’s history.”

So What's the 'Next Big Thing' for Apple?

By Tim Yarbrough
MacDoor Editor
zxmac8384@yahoo.com

With the runaway success of the iPod we can only wonder what the "next big thing" will be from our friends in Cupertino.

The 2004 Christmas shopping season will be known as the "Year of the iPod" just as in past years were known for the Cabbage Patch doll and Tickle Me Elmo.

What's different is the iPod is a utility device that will bring millions of users years of music enjoyment and a reason to access Apple's iTunes store to buy new music.

In the months to come we'll know if the iPod phenomenon is for real. Apple may see increased computer sales as millions of people experience Apple and its innovative products. The company continues to get good press on the quality and stability of its OS X operating system and how Macintosh is immune to many viruses that bombard Windows every day. But selling a few more computers is only part of the iPod story.

Steve Jobs isn't sitting on his laurels. Rumor sites are sizzling with speculation that a new iPod flash and an increased capacity iPod Mini will be introduced in January. But what else does Jobs have under his hat?

Whatever "it" is won't be introduced in January, I'm sure of that. I think Apple could very well be working on new products that further integrate home or personal media. What that is, I can only speculate.

However, Jobs knows all too well that computers won't keep Apple afloat. Rather, it will be the creation of innovative products that make peoples' lives better and more enjoyable.

Only time will tell what products Apple will debut on the world stage. One thing is for certain, on the heels of a monster hit like the iPod, there will be a lot of folks taking notice.