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Wednesday, July 14, 2004, 02:10 pm PT (05:10 pm ET)

Conference Call: Apple confirms new iMac will sport G5 processor

Apple CFO Peter Oppenheimer confirmed that the company's new iMac will be powered by G5 processor while speaking to analysts and press during the company's Q3 FY04 conference call this afternoon. Oppenheimer said that Apple typically does not talk about unannounced products, but IBM's G5 manufacturing problems are also at fault for the new iMac delay. Earlier today, AppleInsider reported on a separate issue that sources say slowed the development of the new iMac.

An analyst later alluded to today's AppleInsider iMac report on heating issues, asking Oppenheimer if heat issues were also to blame for the delay of the new iMacs, or if the issues stemmed exclusively from chip constraints. Oppenheimer would not deny the heating reports, but chose not to discuss the them, stating only that the processor constraints are the "most critical issue." Oppenheimer later reiterated the aforementioned statement when pressed further about heating problems in the new iMac.

Overall, Apple had a wonderful quarter. Some additional notes of interest from the conference call include:

  • Apple had a record setting quarter in terms of unit shipments, shipping 876,000 Macs, its highest quarterly total in 3 years.

  • Macintosh-based revenue up 19%.

  • Apple also had a record quarter for portable shipments, which included 240,000 iBooks and 220,000 PowerBooks.

  • Apple shipped only 173,000 Power Mac G5 models during the quarter due to processor constraints.

  • Apple sold $60 million dollars worth of music accessories or other music related item.

  • The average sell price of the iMac declined from $1067 to $967 due to fewer shipments of flat-panel iMacs.

  • Apple believes IBM's G5 manufacturing problems will also affect the company's quarter ending September, but it is confident that everything is "under control."

  • Supply of 1.8 and 2.0 GHz Power Mac G5s are expected to remain constrained this month, but should catch up to demand in August. Meanwhile, Apple says the 2.5 GHz Power Macs will be available in limited supply for the duration of the current quarter.

  • Apple Retail Store revenue rang in at 270 million, generated from 5.8 million visitors to its 80 stores during the quarter.

  • Apple plans to close out the year with 100 operating Apple retail stores, including a store in Osaka, Japan, and one on Regent Street in London.

  • Apple's higher education sector saw a 40% increase in sales from the year-ago quarter, while K-12 sales rose 3%, resulting in a combined 16% increase in education sales.

  • Apple sold 13,000 Xserves, a quarterly record for the company.

  • Apple confirmed the Best Buy CPU pilot program has ended and there are no further plans to market Apple CPUs in Best Buy stores. Best Buy will continue to sell iPods, however.

  • iPod mini supply will be significantly higher this quarter, with "staggering" demand in the United States and unprecedented demand internationally.

  • The company saw a decline in peripherals due to the transition in its display product-line.

  • Apple remains a debt-free company with $4.96 billion in cash.