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Some of you will remember that I posted earlier that 2007 was going to be Apple’s year. I listed some of the reasons for my prediction. I ommitted the iPhone partly because I didn’t think it would be a reality. I mean, how many times can we predict that it would happen and then be disappointed? Well, that’s how it goes I suppose. But, in case you missed it, Apple came out with its second quarter results. The report was, well, a little encouraging **wink wink.
It seems that Apple is enjoying a very nice position these days. I laughed out loud when I saw the recent commercial with the bloated PC. Could he take up more of the screen? And when they announced an 88% increase in profits over 2nd quarter last year, I about fell out of my chair. Included in their financial report was this quote: “The Company posted revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share. These results compare to revenue of $4.36 billion and net quarterly profit of $410 million, or $.47 per diluted share, in the year-ago quarter. Gross margin was 35.1 percent, up from 29.8 percent in the year-ago quarter. International sales accounted for 43 percent of the quarter’s revenue. Apple shipped 1,517,000 Macintosh® computers and 10,549,000 iPods during the quarter, representing 36 percent growth in Macs and 24 percent growth in iPods over the year-ago quarter.” Um, that’s not too shabby.
If this momentum continues, Apple will really start taking a bite out of market share. They have smartly aligned themselves as offering easy to use digital media products. They offer what people want in a way that is sleek and sexy. It will be interesting to see how the iPhone, Apple TV, and iTunes progresses.
Source: Apple Financial Report, April 25, 2007
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Apple is cool again. On the other side of the fence is Microsoft who have lost control. I have had problems with IE7, problems with Messenger and I hear about problems with Vista. They are chasing IPOD with not a prayer of catching it. If I had shares I would sell them and buy Apple, but then I already own Apple.
Life is good.