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July 18
More on Apple's Financials: Pro Sales Hit 463,000 Units
CFO Anderson attributes slowing iMac sales to consumer anticipation of new products

by David Nagel
Executive Producer
[email protected]

Apple took no questions from members of the press today at its financial results conference call and chose to remain tight-lipped about tomorrow's product announcements, despite leaks from two of its vendors already. Earlier today Apple revealed that it had brought in a profit of $200 million for the quarter ended July 1 on revenues of $1.825 billion. The company now has $3.8 billion in cash and short-term investments. (View the financial results press release here.)

The big news was that iMac sales had begun to slow in the quarter, which CFO Fred Anderson attributed to anticipation of a new product launch. He said iMacs haven't received a major upgrade in nine months and that, in the future, he'd like to see more frequent product introductions.

ATI earlier today released an announcement about its graphics chips appearing in Apple's new iMacs, which Apple still hasn't announced. None of the analysts in the conference call bothered to ask for Apple's response to ATI's premature announcement, despite Apple's threats of legal action against journalists who have been reporting on the new machines for some time now, such as Macintouch, Apple Insider and Mac Rumors. Anderson fell short of confirming specific product announcements but did say that there would certainly be some tomorrow—one of the rare times Apple itself has so much as hinted that it would be making new product announcements tomorrow at all.

Sales of G4 systems hit 350,000 in the quarter, and PowerBooks sold 113,000 units, bringing pro-level sales to nearly 46 percent of total unit sales of 1,016,000.

The other big news was that Circuit City will begin carrying Apple's consumer desktop, notebook and wireless networking products (iMac, iBook and AirPort) in 570 stores. Circuit City stores will display digital video cameras connected to an iMac DV.

Although nothing particularly new or exciting was announced at today's conference call, this quarter did mark the 11th-consecutive quarter of profit for Apple. And though profits were down by about $3 million compared with the same quarter a year ago, revenues were up about 17 percent, much of which can be attributed to stronger sales of machines. The more exciting news will come tomorrow during Steve Jobs's keynote address, at which time he's expected to make several new product announcements. We'll keep bringing you coverage of the show and new product announcements throughout the week. Please check here for continuing updates.


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