Apple Reports Record Q1 Profits, But Outlook Disappoints Market

Authored by Jay Baage on January 17, 2007 - 5:51pm.

San Jose, Ca - Apple, with CEO Steve Jobs, on Wednesday reported that earnings for the fiscal first quarter rose 78 percent because strong holiday sales of its iPod music players and Mac computers. The record profit of $1 billion, as compared to $565 million for the same period last year, beat Wall Street estimates. However, the second-quarter outlook fell below analyst expectations because of slightly lower gross margins and slower expected software sales as customers wait for the new Leopard operating system to be released later this spring.

According to the report, Apple shipped 1.6 million Mac computers and more than 21 million iPods during the quarter. These numbers represent a growth of 28 percent and 50 percent respectively from the year-ago holiday season.

Shares of Apple lost $2.15 to close at $94.95 on the Nasdaq Stock Market as technology stocks in general took a tumble on Wednesday. In the extended trading following its report, Apple shares initially jumped by about 4.5 percent then declined by 1 percent to $94, according to AP.

Joakim Baage

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