Apple's Shiny Quarter

What a nice time to be an Apple (Nasdaq: AAPL  ) shareholder! Not that I am one, but for those of you who are, the company just reported another shiny, shiny quarter.

Apple's accomplishments included record Mac sales, nearly 10 million iPods pushed through the retail channels, and iTunes becoming the third-largest music retailer in the U.S., with a 9.8% market share. Only Wal-Mart (NYSE: WMT  ) and Best Buy (NYSE: BBY  ) can lay claim to a larger territory there. (Wait -- what happened to the music stores?)

Oh, but you don't want to read about that, do you? You came here looking for iPhone numbers. That's OK, because I've got some.

For a product that went on sale only 30 hours before the end of the quarter, the iPhone turned in an impressive number of units sold indeed. AT&T (NYSE: T  ) and the Apple retail stores combined to take delivery of 270,000 phones in the quarter, and 146,000 of them were activated by the period's end. Apple hopes to sell a cool million of the things before turning the calendar to October, and 10 million in 2008 alone.

If you thought the iPod success story was impressive, consider that it took nearly two years to sell the first million of those, not one quarter. Given Apple's tendency to offer earnings and sales guidance worthy of a Deal or No Deal? appearance -- low, low, low! -- perhaps we should expect more out of the unit sales forecast as well. If so, that's a spicy item indeed, especially if you look at the intensity of competition in the cell phone market vs. that in the digital music player arena.

I've been churlish toward Apple before, but the various product lines are all proving to be serious growth drivers, and Jobs keeps coming up with new ones. I'm still concerned about what happens once the Great Leader is gone, although that event is likely many years away today, and the stock price keeps rising faster than earnings. So I'm not going to jump in at this point, even with my affinity for Rule Breaking investments. But like I said, it's a great time to already own this stock. Enjoy that shiny new quarter. Heck, call it a silver dollar.

Further Foolishness:

Wal-Mart and Best Buy are two of our Motley Fool Inside Value recommendations, and Best Buy also hangs out on the Stock Advisor scorecard.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdings if you like. Foolish disclosure wants to live in an iPhone -- just for a week or two. The other Foolish guidelines would be so green with envy.


Read/Post Comments (0) | Recommend This Article (11)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 532645, ~/Articles/ArticleHandler.aspx, 9/22/2014 6:38:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement