An apple a day keeps the doctor away. But laughter is the best medicine, and last night's earnings report from Apple
The company shipped 1.6 million Macs in the quarter, most of them notebooks sold during the back-to-school season, compared with 1.2 million in the year-ago period. iPod shipments reached 8.7 million, up from 8.1 million, though the average selling price there declined by $7 to $178 per unit and the resulting iPod revenue was rather flat. The iTunes service saw the biggest boost of all with a 71% rise in revenue, and iTunes is set to overtake the desktop computer segment in revenues by next year at these rates.
Thanks to the iPod/iTunes combo and the boutique flavor of its computer systems, Apple runs at wider margins than competitors like Dell
It's also worth noting that last night's report covered preliminary financial results, because the company is still busy calculating the financial impact of stock options shenanigans from years past. Apple is still technically delinquent in its SEC filings until the final adjustments are made and proper 10-Q and 10-K statements are filed for the past three quarters.
The stock is very unlikely to get delisted from the Nasdaq over these infractions, thanks to the lengthy appeals process and demonstrated efforts to correct the problems, just as CEO Steve Jobs probably won't lose his grip on the company over financial issues that never benefited him personally. Still, it's all part of the scenery and worth keeping in mind when evaluating the company.
Macs with Intel
A final word of warning, though: Should the company dare to stumble along the way, you're looking at very steep drop-off, as this company is nothing without a steady stream of home-run products.
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