Apple Stock Up On Record Earnings Growth
Tuesday, October 23rd, 2007
Shares of Apple, Inc. rose in after hours trading yesterday as the tech bellwether announced record quarterly earnings growth. Driven by gains in its personal computer business and iPod sales, the company grew earnings by 67% to $904 million. Apple’s computer business accounts for about 62% of revenue, and grew at about twice the rate of the overall personal computer market (around 34%). Desktop sales grew 31% while laptops increased 37%.
Music Products & Services Up
Growth in music products and services revenue also came in strong, as the company launched a new line of iPods ahead of the holiday season. iPod sales grew 17%, while other music revenues (i.e., iTunes) surged 33%. iTunes continues to monopolize the US download market, accounting for a whopping 85% of songs downloaded. This is quite a footprint, as research shows the digital download space continues to grow.
iPhone Growth
As for the iPhone, sales growth and customer satisfaction continue to be high, especially in response to a reduction in the sales price of handsets to $399. According to Apple, their research shows that 95% of Apple customers would recommend the iPhone to other customers.
