Apple reports record revenue, but iPods show little growth

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Apple reports record revenue, but iPods show little growth

Cupertino (CA) – Apple posted another solid quarter, showing substantial year-over year growth. Most of the added revenue comes from surging notebook sales as well as the iPhone. For the very first time, iPod sales very virtually flat and contributed little to the additional revenue.  

Apple said that its first quarter (fiscal Q2) revenue came in at $7.51 billion, compared to $5.26 billion last year. The profit was $1.05 billion, exceeding the firm’s Q2 2007 of $770 million.

According to the company, 2,289,000 Macintosh computers, 10,644,000 iPods and 1,703,000 iPhones were shipped during the quarter.

 “We’re delighted to report 43% revenue growth and the strongest March quarter revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters.”

However, the result appears to be a mixed bag of good and bad. On the positive side, notebook sales surged from 891,000 units in Q2 2007 to more than 1.4 million this year. Notebook revenue climbed $1.4 billion to $2.1 billion. Desktop units also increased, albeit on a slower pace (626,000 to 856,000 units).

The iPhone sales are still not at the level Apple would need to hit its 10 million-per-year-target. 1.7 million phones, however, brought in $378 million, which was more than what the company saw coming in from 2.3 million iPhones in the preceding quarter ($241 million).

Concerns could be emerging over Apple’s iPod sales, which are showing negligible unit growth over the year. 10,644,000 iPods compare to 10,549,000 million iPods in Q2 2007. Revenue from iPods, however, increased from $1.7 billion to $1.8 billion, which indicates that able was successful in raising the average selling price of iPods and convincing more people to purchase the more expensive iPod touch instead of Nano models.