Apple on the rise with Macintosh and iPod sales

Apple Inc. has announced a profit jump of 88 percent in the second quarter, a rise in profit margins, which have gone beyond even the most exaggerated of forecasts. The company has shown a net income of $770 million this year as compared to the same quarter last year which was $410 million.

This climb in profits is attributed mainly to the huge Mac book laptops and iPod digital media player sales. The company’s shares rose 8 percent due to this stupendous sales volume.

These results came in after the scandal of backdating stock options, which also involved the company’s chief executive officer Steven P Jobs. The board of directors had given their complete confidence and support to the CEO in this regard, declaring him not guilty in this case.

Due to this enormous increase in profit margins, Apple’s price per share has also amplified from 47 cents per share to 87 cents per share. Apple has sold 100 million iPods in the last five years and like wise, which amounts up to 70 percent of the total market share.

Apple had sold 1.52 million Macintosh computers and 10.5 million iPods in the first quarter of this year, which is up by 36 percent in computers and 24 percent in iPod, from the last year. "It was the most profitable quarter in Apple's history," Steve Jobs, Apple’s CEO said in a telephone interview. "We're thrilled with it. The Mac is clearly gaining market share."

Apple’s Macintosh computers have been selling like hot cakes as compared to the overall market sales. According to the market statistics, the sales of personal computers have only increased 11 percent in the last quarter.

“The Mac is clearly gaining market share, with sales growing 36 percent — more than three times the industry growth rate,” Mr. Jobs said.

Apple’s tremendous sales success relies on lower component costs and up to a large extent on the increase in demand of notebooks and laptops among people, as a major portion of revenue came from the sales of Macintosh laptops.

Apple said that this was its most profitable quarter; usually sales slow down in the second quarter, because of the period between the holidays and school buying session, but this time it was a completely different situation.

This second quarter success in sales for Apple came in as a absolute surprise for the Wall street analysts. While commenting on this gigantic success, Eugene A. Munster, an analyst at Piper Jaffray said, “They’re defying the laws of gravity when it comes to profitability”.