If I were a stockholder, I would be worried about Steve's compensation and its dilution of easrnings. Also, stock price usually is lowered after earnings release as people take profits(but on the rumor, sell on the news).

What diluted earnings? No mention was made of diluted earnings or how Job's compensation dilutes them.

As for the stock price, after hours trading prices are pointless unless you actually can trade after hours. The big question is whether the price will stay that high come 930 tomorrow.

And, actually, you should be pointing up the $53 million, as that's the real profit ('the street' looks at the numbers before the one-time gains/losses, as those give incorrect ideas on the actual performance - sort of like when Apple would sell ARM stock to boost their income for a quarter by 10 million or so).

Well, looks like those guys who said the iPod would be a flop because of price were right on, huh?

I distinctly recall an avalanche of nasty criticisms about the iPod mini when it was announced. "Too expensive." "Competing products will crush it." "Should have been $100 cheaper." Where all these nut cases now? A sizable portion of the population is willing to pay a premium price for a premium product. As Apple says, they're out to increase revenue, not market share. But market share will come as more people see the quality. I hope-to-god there's NEVER a $499 Macintosh on the market.

I find Apple's insistence that "Market-share isn't important" -- troubling! Every day we read that another long time third-party who has stopped supporting the Mac platform.

Especially when all those teensie weensie iPods EACH sell for almost as much as Dull or GetaWay is getting for a basic CPU -
We will get our systems, and a G5 PowerBook, soon enough...

...and not one mac system.

But I know zilch about economics:)
Having said that *a bit off-topic, I know* but I wonder if there is a way to trace the sales of used Macs? Does Apple receive any of those profits and are they noted? I mean, I know resells are a major thing-our household has brought three new Mac and one used one....
hmm....

"Small profit" from iTunes Music Store

"What diluted earnings? No mention was made of diluted earnings or how Job's compensation dilutes them."

Of course not. You think Apple would talk about something that their boss did and that action how dilutes their EPS at their earning call? Have you listened to much earning calls at all except those of Apple?

Furthermore, how will the EPS will change once/if FASB's proposed rule change require that employers recognize compensation expense for the fair value of stock compensation (including stock options), on the grant date? Yes, EPS will go down.

Lastly, system sale of 5% increase is good but it must be compared ot the industry. Sure, if I told 5% more widgets compared to last qaurter last year and everybody else sold 20% more, sure, Apple fans will still say that is wonderful but not Apple and everyone else! Hence the declining marketshare # that has been so often debated here.

didn't Steve say they were not going to be making hardly any money off of the store anyway. Not a huge shock to me.

Of course not. You think Apple would talk about something that their boss did and that action how dilutes their EPS at their earning call? Have you listened to much earning calls at all except those of Apple?


Well based on that philosophy, they wouldn't talk about anything, as everything they do dilutes EPS. Damn, all those people they pay to man the tech support center hurts EPS. R&D hurts EPS. Everyone's salaries hurt EPS.

Furthermore, how will the EPS will change once/if FASB's proposed rule change require that employers recognize compensation expense for the fair value of stock compensation (including stock options), on the grant date? Yes, EPS will go down.


Of course it will go down. Just like EPS will go down on all companies that use stock options as compensation (except microsoft, who fudge their books well enough that they always beat expectations). Intelligent investors aren't going to look at any company and just dump stock because their EPS went down due to accounting changes. Idiots, sure. But this is why the smart ones ignore the 'diluted' gains and look at the number before one-time gains/losses. Because that's a real barometer. The stock options stuff isn't a big deal.

... you are interested in those numbers, sure. But don't forget, this revenue is suqeezed from a relatively small market - you and me and all of us Apple die hards - paying, again and again, way over the top prices for stylishly designed equipment.

So, in other words, we all pay heavily to keep that stock value up. Now, please enlighten me, where is the great news here?

" But don't forget, this revenue is suqeezed from a relatively small market - you and me and all of us Apple die hards "

It is not just the Apple die hards buying iPods. This revenue is from a very large market.


" paying, again and again, way over the top prices for stylishly designed equipment. "

iPod prices are not way over the top. iPod profit margins are not particularly high either. They are competitive with the rest of the industry.

"Now, please enlighten me, where is the great news here?"

As Apple expands their market, production costs and profit margins will go down and thus the prices that we pay to have these luxuries will be less

> Having said that *a bit off-topic, I know* but I wonder if there is a way to trace the sales of used Macs? Does Apple receive any of those profits and are they noted?

Come on man, can you be serious??? How would Apple receive profits from the sale of used macs????? I know you aren't an economist, but come on!