Apple Retail Financials Rebound

Apple´s third-quarter Retail segment performance was led by an impressive increase in CPU sales, while revenues were up only slightly and profit remained flat. Financial analysts saw the Retail computer sales jump as part of the company´s overall move to depend less on the iPod for its revenue, and more on its core computer products. Retail revenues for Q3 totaled $715 million, up 12% from the previous quarter, and up 29% compared to the same quarter of 2005. Sales of computers at the 150+ stores was even more substantial–up 40% to 216,000 units compared to the previous quarter, and up 50% compared to the same quarter of 2005. The stores continued to see more Windows users come into the stores, with “nearly 50 percent” of store buyers classified as new to Mac, a slight increase over the previous quarter. Prior to this quarter, analysts had believed that Apple had become dependent upon the iPod for new revenue, and that slowing iPod sales were dragging down the company´s financial results. The improved retail store figures helped renew investor´s faith in the stock, which zoomed up about 15% after the results were announced on Wednesday.