Apple keeps digital music grip in Q3

Apple’s grip on the digital music player market remains strong, while its landgrab on the mobile device space through the iPhone remains a serious contender.
The company announced its quarterly results yesterday. While the accounting period didn’t include all the recent sales of the much-hyped iPhone 3G, Apple confirmed sales of 717,000 iPhones during the quarter.
Apple’s iPod throne remains solid, while growth rates have slowed, the company still sold 11,011,000 iPods for $1.678B in revenue.
Unit shipments climbed 12 per cent year-over-year while revenues rose by 7 per cent. And there’s two schools of purchaser – the entry-level music fan picking up an iPod shuffle, and the more advanced consumer, moving to purchase an iPod touch, which is Apple’s first WiFi-equipped iPod, capable of running many iPhone applications.
Apple holds over 70 percent of the digital music player market in the US and Australia, the company revealed. It also holds over 60 per cent of the market in Canada, and over 50 per cent of those in Japan, Switzerland, and the UK. It has “strong” double-digit share elsewhere, Oppenheimer observed. US iPod sales climbed 10 per cent, internationally, sales climbed 15 per cent.
Over 25 million applications have been downloaded from the App Store in 10 days; with over 900 applications now available.The company will launch iPhone 3G in 20 additional countries on August 22nd, bringing the total to over 40. The remaining 30 will be ready before the end of the calendar year. iTunes now offers 8 million songs, 20,000 TV shows, and 2,200 movies, with 450 of those movies offered in HD.
Apple also warned of a looming product transition in the next quarter, warning this would impact profit margins. Apple didn’t say if the new “advanced” device would be a computer, an iPod, a phone or a combination of all three, but September/October is a traditional point at which the company upgrades its music players.
On Apple CEO Steve Jobs’ health, the company says: “Steve loves Apple. He serves at the pleasure of Apple’s board. He has no plans to leave Apple. Steve’s health is a private matter.”
Apple will launch iPhone 3G in 20 additional countries on August 22nd, bringing the total of countries served to over 40.

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