Apple's music and retail revenue grow
updated 08:10 pm EDT, Wed April 23, 2008
Music and retail grow
Music products and services made up 36-percent of Apple's second quarter, while revenue in the company’s retail stores grew dramatically, with over 33.7 million visitors to its 208 stores over the quarter. Apple reports that it sold 10.6 million iPods, up 1-percent from the year ago quarter, which reflects the same seasonal rate of decline which it observed from last year's December quarter. Overall iPod market share grew worldwide in almost every global market, while the US share was 73-percent of all MP3 players sold.
iPod revenue is up 8-percent from last year thanks in part to the international success of the iPod touch, which contributed to a higher average selling price in all geographic areas. Apple also credited the SDK with attracting additional attention, and will broaden the product's overall appeal.
The iTunes store recently surpassed Walmart to become the largest music store in the country, with over 50 million customers and 85-percent of all legally purchased and downloaded digital music.
Apple's retail stores saw a 74-percent growth in revenue, coming out with $1.45 billion, and moving 458,000 Macs over the quarter – an increase of 67-percent year over year. Average revenue per store was $7.1 million, up 48-percent from last year, and operating profits doubled from $164 million to $334 million. The stores also offered 580,000 1-hour personal training sessions to customers, while half of all Mac sales went to customers new to the platform.
Apple opened its 15th store in the UK, and is reportedly looking forward to its operations expanding to Australia, China, and Switzerland, which will contribute to 45 planned store openings during Fiscal 2008.
