Apple reports record quarterly Mac sales

Wednesday, July 25th, 2007 | Apple News

This afternoon Apple Inc. reported record revenue, profit and Mac sales in its history. Mac sales growth has even outpaced that of iPod’s at 33%. iPod sales growth came in at 21% compared to the same quarter last year.

Although Apple reported record earnings—outperforming analysts’ estimates by 26 cents per share—the market showed signs of disappointment with iPhone sales figures. In after-hours trading Apple stock fell as low as $134.20 during the press call. However, soon after the press call was over, the stock jumped by more that $12 a share in after-hours trading to a new record high. Analysts estimated that Apple sold 400,000 to 500,000 iPhones in the 30-some hours before the close of the 3rd quarter, however Apple reported only 270,000 units sold.

I think Wall Street has put too much emphasis on the iPhone sales. Yes, the product was extensively hyped up and Apple set a lofty goal of selling 10 million units by the end of calendar year 2008. However, one must keep in mind that there were only 30 or so hours left in the 3rd quarter when the iPhone went on sale and the initial sales numbers may not be a good indicator of future success.

Apple’s 3rd quarter earnings indicate that their superior financial performance does not depend on iPhone, especially in such a short time span. The numbers clearly show that Apple’s other products are generating the bulk of its revenue and profits. The iPhone will add to the revenue growth, but will not replace the contribution of other products, such as the Mac and iPod.

So, those of you investing in Apple, I believe we will see great performance in the quarters to come and increasing return on your investment.