How do you like them Apples?

Apple Reports Fourth Quarter Results
Quarterly Mac Sales Set New Record Quarterly iPhone Sales Exceed One Million

CUPERTINO, Calif., Oct. 22 -- Apple® today announced financial results for its fiscal 2007 fourth quarter ended September 29, 2007. The Company posted revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share. These results compare to revenue of $4.84 billion and net quarterly profit of $542 million, or $.62 per diluted share, in the year-ago quarter. Gross margin was 33.6 percent, up from 29.2 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue.Apple shipped 2,164,000 Macintosh® computers, representing 34 percent growth over the year-ago quarter and exceeding the previous quarterly record for Mac® shipments by 400,000. The Company sold 10,200,000 iPods during the quarter, representing 17 percent growth over the year-ago quarter. Quarterly iPhone(TM) sales were 1,119,000, bringing cumulative fiscal 2007 sales to 1,389,000.

"We are very pleased to have generated over $24 billion in revenue and $3.5 billion in net income in fiscal 2007," said Steve Jobs, Apple's CEO. "We're looking forward to a strong December quarter as we enter the holiday season with Apple's best products ever."

"Apple ended the fiscal year with $15.4 billion in cash and no debt," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the first quarter of fiscal 2008, we expect revenue of about $9.2 billion and earnings per diluted share of about $1.42."

Apple will provide live streaming of its Q4 2007 financial results conference call utilizing QuickTime®, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Monday, October 22, 2007 at http://www.apple.com/quicktime/qtv/earningsq407/ and will also be available for replay.

This press release contains forward-looking statements about the Company's estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include potential litigation and government enforcement actions that may result from the matters investigated by the special committee of the board of directors and the restatement of the Company's consolidated financial statements; unfavorable results of legal proceedings; the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; continued competitive pressures in the marketplace; the Company's reliance on sole service providers for iPhone in the U.S., U.K., Germany and France; the continued availability on acceptable terms of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the effect that product quality problems could have on the Company's sales and operating profits; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company's dependency on the performance of distributors and other resellers of the Company's products; the Company's reliance on the availability of third-party digital content; and the potential impact of a finding that the Company has infringed on the intellectual property rights of others. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended September 30, 2006, its Forms 10-Q for the quarters ended December 30, 2006, March 31, 2007, and June 30, 2007, and its Form 10-K for the year ended September 29, 2007 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award- winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

© 2007 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.



UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share amounts)

September 29, September 30, 2007 2006 ASSETS: Current assets: Cash and cash equivalents $9,352 $6,392 Short-term investments 6,034 3,718 Accounts receivable, less allowances of $47 and $52, respectively 1,637 1,252 Inventories 346 270 Deferred tax assets 782 607 Other current assets 3,805 2,270 Total current assets 21,956 14,509

Property, plant and equipment, net 1,832 1,281 Goodwill 38 38 Acquired intangible assets, net 299 139 Other assets 1,222 1,238

Total assets $25,347 $17,205

LIABILITIES AND SHAREHOLDERS' EQUITY:

Current liabilities: Accounts payable $4,970 $3,390 Accrued expenses 4,329 3,053 Total current liabilities 9,299 6,443 Non-current liabilities 1,516 778 Total liabilities 10,815 7,221

Commitments and contingencies

Shareholders' equity: Common stock, no par value; 1,800,000,000 shares authorized; 872,328,972 and 855,262,568 shares issued and outstanding, respectively 5,368 4,355 Retained earnings 9,101 5,607 Accumulated other comprehensive income 63 22 Total shareholders' equity 14,532 9,984

Total liabilities and shareholders' equity $25,347 $17,205



UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share amounts)

Three Months Ended Twelve Months Ended September September September September 29, 30, 29, 30, 2007 2006 2007 2006

Net sales $6,217 $4,837 $24,006 $19,315 Cost of sales (1) 4,127 3,425 15,852 13,717 Gross margin 2,090 1,412 8,154 5,598 Operating expenses: Research and development (1) 207 179 782 712 Selling, general, and administrative (1) 823 625 2,963 2,433

Total operating expenses 1,030 804 3,745 3,145

Operating income 1,060 608 4,409 2,453

Other income and expense 170 113 599 365

Income before provision for income taxes 1,230 721 5,008 2,818

Provision for income taxes 326 179 1,512 829

Net income $904 $542 $3,496 $1,989

Earnings per common share: Basic $1.04 $0.63 $4.04 $2.36 Diluted $1.01 $0.62 $3.93 $2.27

Shares used in computing earnings per share (in thousands): Basic 870,881 854,187 864,595 844,058 Diluted 895,666 878,757 889,292 877,526

(1) Stock-based compensation expense was allocated as follows: Cost of sales $10 $5 $35 $21 Research and development $21 $13 $77 $53 Selling, general, and administrative $37 $22 $130 $89



UNAUDITED CONSOLIDATED SCHEDULE OF DEFERRED REVENUE

(in millions)

September June March September 29, 30, 31, 30, 2007 2007 2007 2006 Deferred revenue-current: iPhone and Apple TV $346 $92 $10 $- AppleCare 430 399 373 333 Other 634 572 520 385 Total deferred revenue-current 1,410 1,063 903 718

Deferred revenue-non-current: iPhone and Apple TV 290 88 10 - AppleCare 495 435 392 355 Other 45 38 31 28 Total deferred revenue-non-current 830 561 43 383

Total deferred revenue $2,240 $1,624 $1,336 $1,101



Apple Inc. Q4 2007 Unaudited Summary Data

Q3 2007 Q4 2006 Q4 2007 CPU Rev CPU Rev CPU Rev Operating Segments Units K $M Units K $M Units K $M Americas 824 $2,680 781 $2,348 965 $2,928 Europe 393 1,160 342 988 499 1,339 Japan 81 258 62 286 72 255 Retail 330 915 323 884 473 1,251 Other Segments (1) 136 397 102 331 155 444 Total Operating Segments 1,764 $5,410 1,610 $4,837 2,164 $6,217

Rev Rev Rev Units K $M Units K $M Units K $M Product Summary Desktops (2) 634 $956 624 $869 817 $1,195 Portables (3) 1,130 1,577 986 1,344 1,347 1,908

Subtotal CPUs 1,764 2,533 1,610 2,213 2,164 3,103 iPod 9,815 1,570 8,729 1,559 10,200 1,619 Other Music Related Products and Services (4) 608 452 601 iPhone and Related Products & Services (5) 270 5 - - 1,119 118 Peripherals and Other Hardware 308 297 346 Software, Service and Other Sales 386 316 430 Total Apple $5,410 $4,837 $6,217

Sequential Change Year/Year Change CPU CPU Operating Segments Units Revenue Units Revenue Americas 17% 9% 24% 25% Europe 27% 15% 46% 36% Japan - 11% - 1% 16% - 11% Retail 43% 37% 46% 42% Other Segments (1) 14% 12% 52% 34% Total Operating Segments 23% 15% 34% 29%

Sequential Change Year/Year Change Units Revenue Units Revenue Product Summary Desktops (2) 29% 25% 31% 38% Portables (3) 19% 21% 37% 42%

Subtotal CPUs 23% 23% 34% 40% iPod 4% 3% 17% 4% Other Music Related Products and Services (4) - 1% 33% iPhone and Related Products & Services (5) NM NM NM NM Peripherals and Other Hardware 12% 16% Software, Service and Other Sales 11% 36% Total Apple 15% 29%

(1) Other Segments include Asia Pacific and FileMaker. (2) Includes iMac, eMac, Mac mini, Mac Pro, PowerMac and Xserve product lines. (3) Includes MacBook, iBook, MacBook Pro and PowerBook product lines. (4) Consists of iTunes Store sales, iPod services, and Apple-branded and third-party iPod accessories. (5) Units consist of iPhone handset sales; revenue is derived from handset sales, carrier agreements, and Apple-branded and third-party iPhone accessories.

Source: Apple

Apple and Starbucks Announce Music Partnership

Apple and Starbucks Announce Music Partnership

Wirelessly Find and Buy Music at Starbucks

Apple® and Starbucks today announced this week an exclusive partnership that lets customers wirelessly browse, search for, preview, buy and download music from the iTunes® Wi-Fi Music Store at Starbucks onto their iPod® touch, iPhone(TM) or PC or Mac® running iTunes while at a participating location. When a customer enters a participating location, their device will automatically recognize the iTunes Wi-Fi Music Store using a high-speed Wi-Fi wireless network with no connection fee or hotspot login. Customers will be able to browse, search and freely preview millions of songs, including a new "Now Playing" service which displays the name of the song playing in the Starbucks store at that moment, then easily buy and download songs or albums directly to their device. Prices and selection on the iTunes Wi-Fi Music Store are the same as on the regular iTunes Store. The service will make its debut at more than 600 Starbucks company-operated locations in New York and Seattle on October 2. "Getting free access to the iTunes Wi-Fi Music Store and the 'Now Playing' service at Starbucks is a great way for customers to discover new music," said Steve Jobs, Apple's CEO. "Imagine walking into a participating Starbucks, hearing a great song, and being able to instantly download it onto your iPod or iPhone. We think this is very cool."

"With this partnership, we're bringing Apple's leadership in digital music together with not only our retail footprint, but the unique Starbucks experience, to offer customers a world-class digital music experience," said Howard Schultz, chairman, Starbucks Coffee Company. "Introducing this new service is a natural extension of our music strategy which only enhances the retail coffee experience for customers by helping them discover and acquire new music instantly."

After its debut in New York and Seattle on October 2, the iTunes Wi-Fi Music Store will continue its national rollout to 350 Starbucks stores in the San Francisco Bay area on November 7; 500 stores in Los Angeles in early February 2008; 300 stores in Chicago in March 2008; and additional markets throughout the US later in 2008.

The iTunes Wi-Fi Music Store at Starbucks will run on the robust T-Mobile HotSpot Wi-Fi network which is available at participating Starbucks locations across the US.

With Apple's legendary ease of use, pioneering features such as Cover Flow(TM), integrated podcasting support, iMix playlist sharing, seamless integration with iPod and iPhone, and the ability to turn previously purchased songs into completed albums at reduced prices, the iTunes Store is the best way for PC and Mac users to legally discover, purchase and download music and video online.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award- winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Starbucks Coffee Company provides an uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time. To share in the experience, visit http://www.starbucks.com.

100 Million ...No its Not Dr. Evil - Apple sold its100 millionth iPod.

News out that Apple announced the sale of its 100 millionth iPod- sinces its launch in 2001 has everyone talking in the music industry. 100 Million...
Followed by more impressive stats that iTunes has sold 2.5 billion songs, 50 million TV shows and over 1.3 million movies

Music to Apple, Inc. (AAPL) investor ears that have seen a 52 week range of 52wk Range: 50.16 - 97.80

Technorati Profile