Apple Posts Another Strong Quarter, but iPods Slide

Today, Apple announced that it posted a profit of $1.23 billion on revenues of $8.34 billion for the quarter ending June 30, 2009. The company posted slightly improved (and record-breaking) Macintosh sales and weak iPod sales, but iPhone sales were through the roof.

"We're proud to report the best June quarter for both revenue and earnings in Apple's history," Apple CEO Steve Jobs said. "We set a new record for Mac sales and we think we have a real winner with our new iPhone 3G." (It's unclear whether Jobs means the iPhone 3GS, which is the new iPhone model.)

Apple sold 2.6 million Mac computers in the quarter—a 4 percent increase over the 2.49 million it sold in the same quarter a year before. Mac sales were helped by the introduction of new Macbook notebook computers.

Sales of iPhone were up big-time, but artificially so: Apple sold 5.2 million iPhones in the quarter, up dramatically from the 717,000 units it sold in the same quarter a year ago. But last year, customers stopped buying iPhones in Q2 because of the pending July 2008 launch of the iPhone 3G. This year, Apple introduced a new iPhone 3GS and lowered iPhone 3G prices during the quarter.

Sales of iPod were a dark spot, down 7 percent year-over-year to 10.2 million units. "We \[expect\] the traditional MP3 category to decline over time as we cannibalize ourselves with the \[iPod\] touch and the iPhone," Apple CFO Peter Oppenheimer explained. Sales of the iPod touch, which offers much of the functionality of the iPhone, were up a massive 130 percent, he added.

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