Key Metrics from the Quarter:

Notes and Executive Comments:

Opinions:

Shipments of over 1 million Macs is a great metric considering that the entire line has not been transitioned to Intel based processors and the shipping delays following the announcement of the MacBook Pro.  Furthermore, Apple even mentioned that it's sales associates have not discouraged customers from waiting for Intel based systems. 

Take the 4 percent growth into context.  Of the seven Mac variants, only three have been transitioned to Intel based processors, the iMac, the Mac mini, and the MacBook Pro.  The entry level notebook, currently called the iBook has yet to be transitioned, the same holds true for the professional PowerMac desktop and the Xserve and Xserve RAID servers.  My belief is that if the iBook would have been transitioned to Intel during the quarter, the 4 percent growth would have been much higher.  I expect Apple to release a new consumer notebook to replace the iBook prior to the already referenced education buying season.  I expect an acceleration of Mac unit sales once that notebook is released.  Furthermore, I expect additional MacBook Pro sizes to be released prior to July which will add additional momentum to Mac unit sales.

Increased Macintosh sales are a key metric as the unit sale increase points to Apple's ongoing strengh.  The strong Mac sales lead me to believe that more consumers and businesses are making the switch and that the trend will gain momentum during 2006 and beyond as Apple completes the transition to Intel processors.  I expect Apple to add a significant number of users to it's base and to expand its market share.

My view is that Apple's compelling OS X operating system, quality hardware, innovation, and vision are driving the transition. The migration to OS X and Macs is just beginning.