Apple also beat most analysts' expectations of its unit sales in its core businesses for the quarter. The company sold 2.6 million Macs, up 4 percent from a year ago, and 5.2 million iPhones, a 626 percent leap from a year ago. And even though the company's 10.2 million iPods sold during the quarter was better than expected, it's also Apple's first yearly drop in iPod sales, declining 7 percent.
Mac sales were very impressive for the quarter. Data provided by market research firm IDC showed the entire PC industry down more than 3 percent for April, May, and June, but Apple sold 4 percent more computers this quarter than it did during the same quarter in 2008. The company's laptops were responsible for that surge: MacBook and MacBook Pro shipments were up 13 percent.
Apple confirmed that much of that came late in the quarter after it transitioned to calling all of its unibody laptops MacBook Pros and cut prices across the board.
During the third quarter, Apple sold 10.2 million iPods, compared with 11 million a year ago. It turns out that the shifting appeal of the Shuffle, Nano, and Classic model iPods are to blame. But Apple apparently saw this coming. Those declining sales are "the reason we developed the iPod Touch," Oppenheimer said. "We expect our traditional MP3 players to decline overtime as we cannibalize ourselves with iPod Touch and iPhone."
Sales of the iPod Touch, on the other hand, grew 130 percent from the year before, he said. It reflects the growing emphasis Apple has been putting on the device that has become practically the same product as the iPhone, sans wireless phone service. It also drives revenue in a way that traditional MP3 model iPods do not: besides having access to the iTunes Store, iPod Touch users can also make purchases in the company's growing App Store.
Despite that positive outlook for the iPod Touch, the iPhone is clearly still the star of the company's lineup. The 5.2 million iPhones sold during the quarter was better than what many analysts were anticipating, although the 626 percent jump from a year ago is misleading--Apple didn't update the iPhone until July last year.
As predicted, Apple also put more money into the bank during the quarter, adding $2.2 billion to bring its cash holdings to $31.1 billion total. That's second only to Cisco Systems in the technology industry. But Oppenheimer didn't seem itching to spend it, on a company or on a broad new capital-intensive project, saying, "We continue to focus on the preservation of capital, which has served us well in the current environment," he said.
As usual, Cook did not have too much to add about future products coming from Apple. He did confirm that the updated Snow Leopard operating system is on track to be released later this summer.
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