Apple ups Q3 revenue, but net income falls

Apple Computer has increased its third-quarter revenue 8 per cent while net income fell, compared with last year's third quarter.

Revenue rose to $US1.55 billion in the quarter ended June 28, as compared to revenue of $1.43 billion in the third quarter of fiscal year 2002. But net income fell to $US19 million from $US32 million in last fiscal year's third quarter.

Analysts surveyed by Thomson First Call had expected the company to post revenue of $US1.49 billion.

The company increased the number of Macintosh PCs and other hardware it shipped on a sequential basis, going from 711,000 units in the second quarter to 771,000 units in the third quarter. Shipments were lower on a year-over-year basis, down from 808,000 in the third quarter of fiscal year 2002.

Poor sales of the iMac desktop were the primary reason for the overall shipment decline, with shipments falling from 378,000 in the third quarter of last fiscal year to 287,000 units in this fiscal year's third quarter. However, shipments of Apple's PowerBook notebooks were up 71 per cent, and revenue from peripherals such as the iPod was up 93 per cent, helping to boost the overall numbers.

Apple's business, like the rest of the PC industry, is shifting toward a greater percentage of mobile computers. Of all Macintosh units sold in its third quarter, 46 per cent were mobile PCs, an Apple record, chief financial officer, Fred Anderson, said.

Music played a significant role in the increased third-quarter revenue figures.

Apple sold 5 million songs through its iTunes music store in the quarter, and has sold a total of 6.5 million to date, Anderson said.

This was the first quarter of the music store, and Apple was very pleased with the results so far, he said.

The company sold 304,000 iPod music players in its third quarter, Anderson said.

Apple introduced the latest version of its iPod in the quarter.

For the fourth quarter, Apple expected an increase in both revenue and net income on a sequential basis, Anderson said.

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