Apple Rocks Our World
We spoke last week about how smooth an earnings machine Apple has become.That was part of our breaking story on Apple's decision to enter the cell phone business.
The digital music juggernaut is in talks with Motorola as we speak.
We don't know yet when the new Gizmos will roll out.
That's ok.
Apple is printing money without them.
The company announced Thursday that they've boosted revenue by 75 percent and hit record profits in the last quarter.
For the three months ended June 25, Apple’s net income rose to $320 million, or 37 cents per share, up from the $61 million and 8 cents per share the company reported in the year-ago quarter.
Sales grew to $3.52 billion from $2.01 billion last year.
In short, Apple keeps on blowing away the Street's expectations.
As you can imagine, most of the revenues stem from the iPod mania - Apple has sold 20 milion to date.
Analysts are terming Apple's growth a "halo effect," meaning consumers are buying everything else Apple has to offer besides the ubiquitous iPod.
The halo effect syndrome actually derives from psychological parlance:
The halo effect occurs when a person's positive or negative traits seem to "spill over" from one area of their personality to another in others' perceptions of them. A common example of the halo effect is when a person is assumed to be smart or nerdy because he or she is wearing spectacles. In marketing, a halo effect is one where the perceived positive features of a particular item extend to a broader brand.That's good news for Apple.
Wall Street has been known to retaliate against one-trick ponies after the hysteria settles.
But with the way things are going, I don't think Apple's execs will be losing sleep anytime soon.
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