US computer maker Apple has posted its best third quarter results in eight years, with its flagship iMac computers and its iPod portable music players leading the pack. However, production problems remain an issue.
The company posted a net profit of $61 million (R360 million), or $.16 per diluted share. These results compare to a net profit of $19 million (R120 million), or $.05 per diluted share, in the third quarter a year ago.
Revenue for the quarter was $2.014 billion (R12 billion), up 30% from the year-ago quarter. The gross margin was 27.8% compared with 27.7% in the year-ago quarter. International sales accounted for 39% of the quarter`s revenue.
Apple shipped 876 000 Macintosh units and 860 000 iPods during the quarter, representing a 14% increase in CPU units and a 183% increase in iPods over the year-ago quarter. Its iTunes online music store has had 100 million songs downloaded at $0.99 each since it opened a year ago.
"Our Mac-based revenue grew a healthy 19%, and our music-based revenue grew an incredible 162%," says Steve Jobs, Apple`s CEO.
However, Apple is experiencing problems with the delayed launch of the new version of its iMac premium desktop model. It has announced it will stop manufacturing the current version, but it will only start shipping the new version in September, due to production problems at IBM in manufacturing the processors.
Apple is only expected to showcase the new product later this month.
Bruno Verolini, head of Apple`s South African operations, says the delay should not impact this country, although there is no indication of when the new iMacs will start to arrive.
"The iMac is a consumer and professional product, it is not really aimed at the educational sphere, where the eMac is targeted," he says.
While education has been a key Apple market in the US, it has made little headway in the South African market, largely due to price constraints.
"We have developed good relationships with the higher education institutions, but in the grade 0 to 12 (K12 in industry parlance), we still have a lot of work to do," Verolini says.
Apple does not release details of country sales outside the US, but Verolini says the South African operation has beaten the local industry averages of units and revenue growth during the past year.
"Non-traditional Apple users have begun to buy the products, especially the laptops," he says.
The strength of the rand has also helped Apple`s South African sales as the local currency has appreciated by 40% against the dollar during the past year.
Related story:
Mini iPod due in SA by end-July
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