Apple Mac HQ

Apple released their 4th quarter financial results today after the market closed. If you don’t want to listen to the entire report, here are some numbers or points I found interesting. My comments are in parentheses.

B = Billion
M = Million
FY = Fiscal Year

Revenue/Financials
-Revenue of 6.22B; a 29% increase over year ago quarter
-Net income of 904M, up 67% over year ago quarter
-Mac products and services accounted for 62% of total quarterly revenue
-36% of quarterly revenue were from music related products
-Revenue of 118M was recognized from iPhone sales, iPhone accessories, and payments from AT&T
-Apple Stores averaged revenue of 6.6M based on an average of 190 stores
-33.6% total company gross margin
-Capitalized 22M of software development expense related to Leopard in 4Q
-15.4B in cash balance to end the quarter
-24B in revenue FY 2007
-3.5B in net income for FY 2007
-Direct sales were 57% of total company revenue in 4Q

Mac
-Shipped 2.16M Macs in 4Q; which is a new quarterly record
-34% Mac growth over year ago quarter
-Driven by the iMac redesign; 31% year over year growth in desktop systems
-Sales of Macbook and Macbook Pro increased 37% over year ago quarter
-62% of Macs sold were Macbook and Macbook Pro
-Q4 ended with less than 3 weeks channel inventory; which is below average
-7M Macs sold in FY 2007
-Around 8700 Mac sales points

iPhone
-Sold 1.1M iPhones during 4Q; 1.4M to date
-iPhone was the fourth highest selling handset in the US during the 4Q according to market research
-Apple anticipates most iPhone $100 credits to be recorded by end of calendar year 2007
-Working with Salesforce.com on their iPhone software
-On target to enter Asia in 2008 with iPhone
-Apple estimates 250K iPhones sold to individuals wishing to unlock them
-No update on previously mentioned iPhone testing in the Enterprise (maybe with Active Sync?)
-No news on new iPhone model. Apple did not comment on entering Asia with a 2.5G phone. (Could this point to the Asia 2008 launch for a 3G iPhone?)

iPod/iTunes
-10.2M iPods sold in 4Q; 17% growth over year ago quarter
-Other music revenue grew 33% year over year (iTunes, anything else?)
-In the US, iTunes accounts for over 85% of purchased and downloaded music according to the latest available Soundscan data
-Over 3B songs and 100M TV shows sold to date
-52M iPods sold in FY 2007
-Over 40K iPod sales points
-Over 120M iPods shipped to date

Apple Stores
-Apple Stores reported 1.25B in revenue, which was a 42% year over year growth.
-Q4 ended with 197 Apple Stores
-Over 50% of in store Mac sales were to new Mac customers
-31M visitors to Apple Stores in 4Q
-40 new Apple Stores to open in the coming year
-Beijing, China store to open next Summer
-Apple Stores hosted over 100M visitors in FY 2007

Other
-In the first half of calendar year 2007, 17% of global music sales are digital according to IFPI
-Analysts were surprised that Apple released guidance above Wall Street estimates
-230 Best Buy mini stores operating at end of 4Q; with more than 270 expected to be in operation by the end of 2007
-Added over 2000 storefronts to Mac distribution in the last year; this includes partners and Apple Stores
-47% unit growth in Europe year over year
-Japan is still toughest major market for Apple
-21M potential Leopard customers; Macs shipped in the last 4 years that meet system requirements
-100M in revenue on Tiger sales in first quarter of launch

As you can tell by the numbers above, Apple had a remarkable quarter. The holiday season is always the biggest iPod quarter, and with Leopard coming this week the next quarter is looking good as well.

Disclosure: I own an insignificant number of Apple, Inc (AAPL) shares.

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