Apple's Q3 2007 Earnings - Mac Sales rise to 1.764 Million Units

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By: switchtoamac at: 3:43 PM on July 25, 2007 | Comments (0)
On Wednesday July 25, 2007, Apple Inc. released financial results for its fiscal 2007 third quarter (Q3 2007).  Apple sold a total of 1.764 million Macs during the quarter representing 42 percent growth in  Mac sales versus the year ago quarter (Q3 2006).

From Apple's Press Release
"Apple shipped 1,764,000 Macintosh computers, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac shipments by over 150,000. The Company also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter."

“We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO. “iPhone is off to a great start—we hope to sell our one-millionth iPhone by the end of its first full quarter of sales—and our new product pipeline is very strong.”

“We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65.”

1,764,000 Million Macs Sold

The breakdown of Mac shipments type was as follows:

  • Portables sales: 1,130,000
  • Desktop sales: 634,000

Note that portables include the MacBook, iBook, MacBook Pro and PowerBook product lines. Desktops include the iMac, eMac, Mac mini, Mac Pro, PowerMac and Xserve product lines.

Mac Unit Breakdowns by Region and Operating Segment:

  • Americas: 824,000
  • Europe: 393,000
  • Japan: 81,000
  • Retail: 330,000
  • Other Segments: 136,000
Key Metrics from Q3 2007
  • Shipments of 1,764,000 Macintosh computers, a 32.9 percent increase versus the 1,327,000 units sold during the year-ago quarter (Q3 2006)
  • Up from the 1,517,000 units sold last quarter (Q2 2007), an increase of 247,000 units
  • Portables sales: up 42 percent compared to the year ago quarter, an increase of 332,000 units
  • Desktop sales: up 20 percent compared to the year ago quarter, an increase of 105,000 units
  • International sales accounted for 50 percent of the quarter's total revenue
Sales of the iPhone contributed minimally to the earnings as it went on sale on June 29 resulting in only two days of sales applied to the quarter.  It's important to note that revenue related to the iPhone will be booked as subscription revenue over a period of two years, the minimal length of a subscription contract via AT&T.

Apple's financial results will be discussed via an earnings call that starts at 2pm PDT/5pm EDT.  You can read the press release in full here.

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