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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: OrionX who wrote (49475)11/27/2005 3:23:57 AM
From: Cogito  Respond to of 213182
 
>>Revenue from Macs: $1.6B
Revenue from iPods: $1.212B
and other music products (I would guess iTunes downloads): $265M

So, while most would be assumed to be 50% or higher, we have 1.6B from Macs and $1.477B from iPod related sales. That works out to 40% of iPod related sales from the total revenue of $3.678B. A staggeringly large portion of revenues. With Apple's target of $4.7B this qtr, I betting that the iPod and iTunes revenues will approach or surpass the 50% mark. Hence my previous comments.<<

Orion -

So by the published numbers and using the accepted definition of the word "most", most of Apple's revenues do not come from the iPod. Another thing you should not forget is that Apple gets a higher profit margin on computers than on iPods, and almost no profit from the sales of music. So from this we know that an even larger portion of their profits come from products other than the iPod. Then there's software, which generates the highest profit margins of all.

You can assume, if you want to, that Apple may derive most of their revenue and profits from the iPod in this quarter, but that's just supposition on your part.

And by the way, the competition has yet to mount a credible threat to Apple's dominance of this market. They've had four years. What's the holdup?

- Allen