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Sunday, July 23, 2006

Computer Business News: Music Makes Up 50% of Apple’s Business

Computer business Apple enjoyed the second most profitable quarter in its 30 years of business when its music business expanded to comprise almost 50% of the company’s total revenues. iPod, iPod accessories and downloaded tracks sales from iTunes now make up 45% of the computer business’ sales, and have helped Apple increase its profits 46% to $470 million.

From April to July of this year, Apple sold 8.1 million iPods globally, which is a 32% year growth in digital music and video player sales. These figures are an astounding year’s increase, but the overall numbers were actually down from 8.5 million the quarter before. This is only the second time that the computer business has not increased its sales in the past four years.

Because music products are so much of Apple’s business, the Beatles’ Apple Corps record label, recently losing a lawsuit with the computer business over it had broken an agreement to stay out will experience disappointment.

A lot of the computer business’ profit came from its sole computer business, which also did very well, selling over 1.3 million Mac computers last quarter. This growth can be attributed to a change to Intel-based systems that allow Apple to run Microsoft’s operating system.

CEO Steve Jobs said he is very excited about Apple’s growth and that over 75% of the Macs sold this past quarter were those with Intel processors, meaning a very smooth transition to new products. While the earnings were congruent with expectations, the markets were pushed further upwards at the news in New York, increasing Apple shares by 12.5%.

Added By: Computer Consulting Kit