Apple Q1: The iPod Has Left The Building

Apple Q1: The iPod Has Left The Building

We'll let SAI's Henry Blodget explain the pros and cons of paying attention to quarterly numbers, guidance, and whisper numbers tomorrow. And we're not going to try to analyze why AAPL is plummeting in after-hours trading. But we can explain how Apple's business units performed in the last quarter. (See our spreadsheet.) The short version: The iPod, which helped Apple revive its fortunes just five years ago, is on its way out. And Apple is becoming a computer company again.

Apple sold 22.1 million iPods during the holiday quarter; the division's $4 billion in revenue was 42% of the company's $9.6 billion total. But as we pointed out last week, iPod unit sales growth is anemic. (See chart below.) Apple sold just 5% more iPods last quarter than it did in the year-ago quarter -- its fourth straight quarter of decline in year-over-year unit sales growth. That's okay for now -- Apple still sold more iPods last quarter than ever before, and revenue was up 17% y/y. But that revenue growth number was down a hair y/y, and the company will increasingly rely on its iPhone and Mac businesses for growth.

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