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Last Updated: Wednesday, 18 January 2006, 22:12 GMT
Apple enjoys ongoing iPod demand
Apple's iPod music player
Apple's iPod continues to be fantastically popular
Apple sold more than 14 million of its iPod personal music players in the last three months of 2005, helping to almost double its quarterly profits.

Releasing its results for its fiscal first quarter, it made a net profit of $565m (320m), up from $255m a year earlier. Revenues rose 64% to $5.75bn.

Sales of Apple's computers totalled 1.25 million during the quarter, below market expectations.

Apple also disappointed with its second quarter results projections.

Forthcoming products

"We are thrilled to report the best quarter in Apple's history," said Apple's chief executive Steve Jobs.

Apple boss Steve Jobs at the recent MacWorld event
Some analysts believe Apple needs to renew its focus on computers

"We are working on more wonderful products for 2006, and I can't wait to see what our customers think of them."

The reaction of analysts to the results was however more mixed.

While many were impressed with the figures, others cautioned that Apple still wasn't seeing enough growth in sales of its computers.

Over-reliance?

"Historically, the Mac [computer] has been the primary revenue generator - even though all the news has been about the iPod [over the past few years]," said Nitin Gupta, analyst with the Yankee Group.

"At this rate of growth, the Mac is not going to be their primary revenue driver.

"If they become too dependent on iPods and digital audio players that's a risk over the long terms.

"It's going to be hard to maintain those iPod shipment numbers."

Apple also disappointed analysts with its predictions for its current second quarter.

It estimates it will achieve revenues of $4.3bn, below market expectations of $4.8bn.

As a result, Apple shares fell in after-hours trading in New York.

The computer and electronics firm has now sold about 42 million iPods since their introduction in October 2001.

Apple, whose shares more than doubled in 2005, also recently announced that its computers would soon be using Intel processors for the first time.


SEE ALSO:
Snooping fears plague new iTunes
13 Jan 06 |  Technology
Apple debuts Intel-powered Macs
10 Jan 06 |  Technology
Rivals to take bite out of Apple
08 Jan 06 |  Technology
Apple faces iPod patent dispute
08 Dec 05 |  Technology
Intel deal for iPod memory chips
21 Nov 05 |  Business
Levi makes iPod controlling jeans
11 Jan 06 |  Business
Apple iPod sets sights on video
13 Oct 05 |  Technology


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