Apple Q4 2004 Financial Results: Revenue Up 37 Percent

soulseek

soulseek

It's set to groove
http://www.macrumors.com/pages/2004/10/20041013172731.shtml

In its Q4 2004 financial report, Apple announced revenue of $2.35 billion, a gain of 37% over the same quarter last year. International sales were 37% of revenue. Net profit was $106 million, up from $44 million for Q4 2003.

During the quarter, Apple shipped 836,000 Macintosh units and 2,016,000 iPods, up 6% and 500%, respectively, over Q4 2003.

In annual results, Apple reported net income of $276 million (compared to $69 million in 2003) on revenue of $8.28 billion (compared to $6.21 billion in 2003).

"We are thrilled to report our highest fourth quarter revenue in nine years," said Steve Jobs, Apple's CEO. "We shipped over 2 million iPods, our Retail store revenue grew 95 percent year-over-year, and the new iMac G5 has received phenomenal reviews and is off to a great start."
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Apple's net profit margin's are actually quite low. 276 mil profit over 8.28 bil revenue yields about 3%. Dell has a much higher profit margin. Perhaps this means that Apple isn't over charging for their products, unlike other PC manufacturers.
 
Maybe Dell has a greater range of suppliers for parts where any third world producer can be involved in the greater good of Dell.
 
I think one of Apple's biggest faults is that it doesn't package some kind of monitor with the Power Mac G5.

Doesn't matter anyway we've all done our part I'm sure. Me and my sister might be getting an iPod mini each soon anyway ;)
 
Not bad for a quarter that was supposed to be a mess because of the delayed new G5 iMacs and shortages of the old ones. The fine print says they sold 2 million iPods... Between the regular trading session and the after hours session, AAPL stock was up over 10%.

Regarding Apple's net margins, the company (by design) has a lot of overhead costs which drive down the net (but not gross) margins: they run an expensive advertising campaign and have a massive R&D budget, which are the price of being "cool" and innovative, respectively. They also have built an infrastructure which supports a company many times their size to be able to grow the company with relatively little incremental cost.

Looking forward to the next quarter. It sure looks like there will be an iPod in every stocking this Christmas, wonder if that will translate into a G5 iMac under every tree...
 
Viro said:
Apple's net profit margin's are actually quite low. 276 mil profit over 8.28 bil revenue yields about 3%. Dell has a much higher profit margin. Perhaps this means that Apple isn't over charging for their products, unlike other PC manufacturers.
Click to expand...
Actually, Apple's 'operating' profit, which is a better guage of how they are doing, is higher then Dell's.
But keep in mind, Dell doesn't just sell hardware. They are also a North American Microsoft Large Area Reseller (LAR) and an EMEA (Europe, Middle East, Africa) LAR. So their revenues are also generated by the selling of licenses to their enterprise customers.
 
I wonder if higher market share (i.e. economy of scale) would help drive these "overhead" costs down?

Hmmm...

Kudos to Apple, though, for a pretty darned good quarter! It's great to see things looking that much brighter.
 
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