iPod sales propel Apple to best-ever quarter

12 Oct 2005

The remarkable turnaround in Apple’s fortunes continues on the back of iPod sales that are now outselling Macs by a factor of more than 5:1, helping the computer maker record the highest revenue and earnings in its history.

Apple posted revenue of US$3.68bn and a net quarterly profit of US$430m, or US$.50 per diluted share, for the fiscal 2005 fourth quarter ended 24 September 2005. These results compare to revenue of US$2.35bn and a net profit of US$106m, or US$0.13 per diluted share, in the corresponding quarter last year. Gross margin was 28.1pc, up from 27pc in Q4 2004, while international sales accounted for 40pc of the quarter’s revenue.

Earnings per share benefited by US$0.12 from several tax items related to net deferred tax assets, tax reserves, and a revision to the full-year tax rate estimated in prior quarters.

Apple shipped 1,236,000 Macs and 6,451,000 iPods during the quarter, representing 48pc growth in Macs and 220pc growth in iPods during Q4 2004.

For fiscal 2005, the company generated revenue of US$13.93bn and a net profit of US$1.335bn, a jump of 68pc and 384pc, respectively, and representing the highest annual revenue and net profit in the company’s history.

Welcoming the sparkling set of results, Apple CEO Steve Jobs said the performance was “the direct result of our focus on innovation and the immense talent and creativity at Apple”. He added that there were more exciting products in the pipeline for 2006.

The company said it expected revenue of about US$4.7bn in the first quarter of fiscal 2006.

By Brian Skelly