Recently computer business Apple experienced a huge increase in sales for the holiday quarter.  This boost in sales from the California-based computer business can be attributed to sales of iPod mp3 players and Mac personal computers.  Its per-share profit increased by 75% from last year at this time and sales rose 24% to $7.1 billion for the quarter ending December 30, 2006.

Experts in the industry expect that good things will continue to happen for Apple.  However, the computer business itself predicted much lower quarterly results in the second quarter, and its shares lowered as a result.  Before this recent report was released, Apple’s shares fell 2%.  After the report, its shares hit a record high.

Mac computers and iPods represented a 28% and 50% growth in sales vs. a year ago.  Apple’s music business, such as iPods and iTunes music store were 57% of the company’s sales.  Last week, Apple presented the first version of its iPhone smart phone and Apple TV set-top box as well.  CEO Peter Oppenheimer is very pleased with the results.

Computer business Apple still faces challenges.  As it shifts from a computer company to a consumer electronics company it will have some obstacles to overcome.  Recent federal investigations of its stock option policies and questions about Steve Jobs and his credibility will also cause some uncertainty.  Computer business Apple stated on December 29 that it will take charges of $84 million related to improper accounting of stock option grants in the years 1997 – 2002.

Despite recent scandals over stock options, analysts believe that Apple’s big product launches will take the front seat and cause growth.  This coupled with improvement of its Mac computers and other existing products will help put it at the forefront of the computer industry.  Computer business Apple’s retail strategy could help it get ahead as well.

Blogged By:  Computer Consulting Kit