An Apple a second, or so

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Apple held their financial call today, and – as expected – they killed. They actually killed far more than analysts had expected. Below are some salient details from Apple Insider related to Apple’s music biz.

While I wish Apple would break out the number of songs sold on iTunes, given the revenue that was reported on another part of the call, it looks to me like they’re selling quite a few songs per second.

This will likely increase dramatically if the rumors are true about the Beatles coming to the iTunes store.

Here are the details from the call:

Apple’s Music Business
Apple sold 21.066 million iPods during the quarter, representing a 50 percent increase in units and 18 percent increase in revenue year-over-year. Sequentially, iPods grew 141 percent in units and 120 percent in revenue.

All three iPod models did exceptionally well during the quarter.

The iPod share of the US digital music player market was 72 percent in December, according to NPD.

During the quarter, the iPod gained share in every international country for which data is available.

iTunes continues to lead the legal download market, with an over 85 percent share.

The iTunes Store now contains over 4 million songs, 350 television shows, and 250 movies.

Channel inventory of iPods increased by 200,000 units related to channel fill for the iPod shuffle. Apple ended within its range of 4-6 weeks.

Apple won’t break down iPod gross margin (and never has), but said the players were “key” to the overall corporate gross margin.

Apple won’t break out Apple TV sales next quarter and will instead lump them into its “Other Music Related Products and Services” category. We’ll never know how many are actually sold unless Apple makes a separate announcement.

Apple expects a higher seasonal decline in iPod sales from the December to the March quarters than it witnessed last year. Part of this has to do with the supply and demand balance achieved during the December quarter this year. Last year, demand for iPods exceeded supply during the December quarter, which resulted in some pent-up demand spilling into the March quarter.


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