Of logic-defying account books and netbooks

Many have been surprised by Apple's impressive quarterly financial result.

Apple has just revealed its latest year-quarter revenue: US$9.87 billion (over $14 billion NZD) and a net quarterly profit of US$1.67 billion, or US$1.82 per diluted share.

In the same year-ago quarter, Apple's revenue was almost US2 billion lower, at $7.9 billion, with a net quarterly profit of US$1.14 billion.

Apple's gross margin was 36.6 per cent, up from 34.7 per cent in the year-ago quarter. Of course, Apple's stock went up.

Peter Oppenheimer, Apple's Chief Financial Officer, also mentioned Apple's full year results: "For the full year, we grew revenue by 12 per cent and net income by 18 per cent in extraordinarily challenging times."

The profit took many analysts by surprise. Bob O'Donnell, IDC's vice president of clients and display, said last week that everyone was guessing at Apple's numbers.

"Here's the interesting thing. Last month we called Apple [sales] low, and we got it wrong. I take full blame for that," O'Donnell admitted. "I thought, 'How can they possibly maintain share?' But they defy logic."

Apple's share of the US PC market has also grown. According to IDC, Apple accounted for 9.4 per cent of all US computer sales in the third quarter. In the period prior, Apple had just 7.6 per cent of sales.

It's never easy to get much detail on where Apple sells what, but it appears international sales accounted for 46 per cent of the quarter's revenue. AppleInsider has posted that  Apple Americas accounted for 1.252 million Mac sales (US$4.297 billion). That's a 12 per cent year-over-year increase, and an additional 20 per cent in revenue from the same frame a year prior.

Apple Europe represented 761,000 Mac sales (US$2.491 billion). That's a year-over-year increase of 25 per cent in sales.

Apple sold 79,000 Macs in Japan (US$4.34 million). That was only a one per cent increase year-over-year for the region.

Other segments, including Asia Pacific and FileMaker Inc, which includes New Zealand, saw a 42 per cent increase in shipments and 39 per cent growth in revenue based on 291,000 Mac sales generating $7.81 million in revenue.

Overall, Apple's latest profits came from sales of 3.05 million Macs (up 17 per cent year-on-year).

Meanwhile the sales of 10.2 million iPods represent a decline as the iPhone eats into the popularity of the music player. iPod sales were down 8 per cent down year-on-year.

Indeed, year-on-year, iPhone sales were 7 per cent up (7.4 million iPhones sold).

It looks like even the US government is starting to look seriously at Apple gear. The US Army has four video surveillance installations based on Apple OS X, and using Apple servers. A "large US government entity" had just initiated an all-Apple installation, according to Security System News.

But what of the future? New iMac rumours are still going around. Steve Jobs, Apple's CEO, said at the earnings call "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

Mysteriously, Apple execs noted they were expecting increased air freight costs that were "nothing to do with iPhone", and "are about getting units into the channel for the holiday."

Units of what? Cult of Mac has more info on this little teaser, which to me once again points to new iMacs (but once again, my hope may be tipping the balance of reason). And in the pipeline for 2010? Maybe some tablet thang.

Needless to say, Apple still feels pretty confident about the future. Unlike Dell. Michael Dell last week criticised both his own products and Microsoft, for Vista, although he praised the imminent Windows 7.

The Dell CEO largely dismissed netbooks as a category and said a "fair amount" of buyers were unhappy with them for both their smaller screens and performance issues. Existing notebook owners in particular feel disappointed as they lose what they liked about their larger portables. Does this surprise anyone? I mean, great that you can carry a netbook so easily, and great it may have cost you peanuts, but if all you can do is surf the net and read email, I can imagine the fun palling pretty quickly. Of course, and despite Michael's critique, Dell offers many netbook models.

Windows PC builders have been keen to tout increased shipments of the little laptops but have often suffered revenue drops due to general low prices and the belt-tightened profit margins. These margins have mostly failed to make up for recession-related losses in regular notebook sales.

Apple has been criticised for not offering a netbook at all, and has been one of the few major computer brands to actively resist entering the category. Apple reckons netbooks are slow, small and uncomfortable, reports Electronista.

Meanwhile, Apple made Number 3 on the AT Kearney Global Champions list.

Nintendo is top, followed by Google. No other PC companies made the list. Now, where shall I put that new iMac?

- Mark Webster mac.nz http://web.me.com/mac.nz