Apple iPod boom slows down

Investors had expected stronger growth for Apple's iconic music player

Apple's iPod digital music player has helped the company to record revenues and profits, but quarter-on-quarter demand for the iconic range of media players has disappointed industry analysts.

The manufacturer reported profit of $430m on sales of $3.68bn in its last quarter of the fiscal year.

Compared to the same period last year, sales were up 56.6 per cent and profit grew by 306 per cent. Fiscal 2005 showed sales of $13.93bn and profit of $1.34bn.

Apple chief executive Steve Jobs touted the result as the best year in Apple's history. But the figures were positively affected by a one-time tax charge.

The iPod remains a red hot item in Apple's books. Consumers purchased 6.45 million of the devices in the quarter ending 24 September, up 220 per cent year-over-year.

Although this surpassed sales in the previous quarter when Apple sold 6.16 million units, investors had expected stronger growth. Following the earnings release, Apple stock fell almost 10 per cent in after-hours trading.

The iPod Nano, introduced in early September, proved to be an overwhelming success, selling more than one million units in its first 17 days. The Nano is currently sold out and Apple could not say when it expects to catch up with demand.

The earnings announcement came the day before a much anticipated Apple media event, at which the company is rumoured to be unveiling a video iPod. 

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Sales of Apple's desktop and laptop computers showed a mixed picture. While overall sales increased 48 per cent year-over-year to 1.24 million units, desktop shipments fell relative to the past quarter.