Apple Earnings Blowout

Apple's 2nd quarter earnings numbers are amazing. No commentary or analysis can really do it justice, the numbers speak for themselves:

$ 5.26 Billion in revenue - 56% from the sale of Macs, 44% from sale of iPods and music
$ 770 Million in Profit - up 88% from 2Q2006
$ 35.1% Gross Margin - up from 29.8% from 2Q2006
1.5 Million Macs Sold - up 36% from 2Q2006
10.5 Million iPods Sold - up 34% from 2Q2006

Analysts had predicted profit of 64 cents per share. Apple annouced profit of 87 cents per share.

Some interesting tidbits:

- Mac sales growing faster than iPod sales (so much for the iPod is the only thing holding the company up).
- iTunes sales are up (no numbers offered though).
- Sales through the retail stores grew 79% (alot of Apple's profit is coming from retail sales).
- Apple's going to account for sales and earnings from the iPhone and Apple TV on a subscription basis for 24 months after the sale of a unit. This is very intersting. Apple said that the reason for this is because they are going to be offering new software features for free for the iPhone and Apple TV.
- Notebook sales up 79% from 2Q2006. Guess 2007 is the real year of the laptop.
- Apple has $12.6 Billion cash on hand. No mention as to what they are going to do with that huge war chest.