Apple today announced financial results for its fiscal 2006 first quarter ended December 31, 2005, reporting the highest revenue and earnings in the Company's history. Apple posted revenue of $5.75 billion and a net quarterly profit of $565 million, or $.65 per diluted share, in the 14-week December quarter. These results compare to revenue of $3.49 billion and a net profit of $295 million, or $.35 per diluted share, in the year-ago quarter. Gross margin was 27.2 percent, down from 28.5 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter's revenue. Apple said it shipped 1,254,000 Macs and 14,043,000 iPods during the quarter, representing 20 percent growth in Macs and 207 percent growth in iPods over the year-ago quarter.
"We are thrilled to report the best quarter in Apple's history," said Steve Jobs, Apple's CEO. "Two highlights of an incredible quarter were selling 14 million iPods and getting ready to launch our new Macs with Intel processors five to six months ahead of expectations. We are working on more wonderful products for 2006, and I can't wait to see what our customers think of them." "We're very pleased to report year-over-year revenue growth of 65 percent and net income that was nearly twice the year-ago level," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the second quarter of fiscal 2006, we expect revenue of about $4.3 billion. We expect GAAP earnings per diluted share of about $.38, including an estimated $.04 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.42."

Well, it looks like the Classic Environment is now dead. Initial reports indicate that 'Classic' AKA OS 9 doesn't work on the new iMac Intel Core Duo, or the Macbook Pro.

update* this has now been confirmed.

Major Upgrade Features New Versions of iPhoto, iMovie HD, iDVD & GarageBand and Introduces iWeb

MACWORLD EXPO, SAN FRANCISCO—January 10, 2006—Apple® today announced  iLife® ‘06, the most significant upgrade to Apple’s award-winning suite of digital lifestyle applications ever. iLife ‘06 features iPhoto® 6 with blazing performance, new printed books, calendars and cards, and Apple’s innovative new Photocasting™ for sharing photos over the Internet; iMovie® HD 6 with new motion themes for adding spectacular production value to your movies; iDVD® 6 for authoring custom DVDs for today’s widescreen TVs; and GarageBand™ 3, now the complete solution for creating professional-quality Podcasts. iLife ‘06 also introduces iWeb™, a new iLife application that makes it super-easy to create amazing websites with photos, blogs and Podcasts and publish them on .Mac for viewing by anyone on the Internet with just a single click.

“This is the most exciting iLife upgrade ever,” said Steve Jobs, Apple’s CEO. “Apple pioneered applications to serve our emerging digital lifestyle and then consolidated them into the iLife suite. With this major upgrade to iLife, we’re leaping even further ahead of anything available for the PC.”

iLife ‘06 introduces iWeb, the easiest way to create professional-looking web pages, online photo albums, blogs and Podcasts in minutes. Apple-designed templates help create stunning websites and the iLife media browser makes adding photos, movies, music or playlists as simple as drag and drop. Powerful editing tools make it easy to customise websites without having to know HTML. iWeb works seamlessly with other iLife ‘06 applications as a complete solution for creating photo albums, blogs and Podcasts that can be published to the Internet with one click using .Mac.

iPhoto 6 offers blazing performance, support for up to 250,000 photos and introduces Photocasting, an innovative new way to share photos directly from within iPhoto via .Mac to friends and family. Photocasting is like Podcasting for photos where anyone can subscribe to a published photo album and automatically receive full quality photos directly within iPhoto 6 or on a PC. Pictures automatically update when the owner adds, edits or deletes a photo within the published album. Photos can be viewed on Apple’s stunning displays with new full-screen edit and compare mode without menus or windows to distract from the image. Up to eight photos can be compared simultaneously and adjusted with a one-click image enhancements and effects panel. Professional-quality books, calendars and greeting cards are created easily by adding photos to Apple-designed themes.

iMovie HD 6 introduces revolutionary new Apple-designed motion themes that let users add Hollywood-style production value to their movies in minutes. Effects can be previewed without waiting with new real-time Core Video effects, while cinematic titling gives users flexibility to create incredible text effects. New audio enhancement tools and sound effects make movies sound as good as they look. Multiple projects can now be opened at once in iMovie HD 6 and clips can be moved among projects. iMovie HD is the easiest way to make a video Podcast which can be published with iWeb for the whole world to experience.

iDVD 6 allows users to take content shot with the latest HDV and widescreen DV cameras and author custom DVDs with widescreen menus, movies and high resolution slideshows that fill every inch of the newest widescreen TVs. iDVD 6 features 10 new Apple-designed menu themes in both widescreen (16:9) and standard (4:3) formats. iDVD 6 themes include new autofill drop zones to make customizing menus even easier.  In addition, iDVD 6 can burn using compatible third-party DVD burners. iDVD 6 also includes new Magic iDVD, the easiest way ever to make a DVD. With just a few clicks, users select a theme and choose their movies and photos, Magic iDVD then automatically creates a complete DVD that’s ready to burn.

In addition to being the best way to make music on a computer, GarageBand 3 is now also a complete solution for creating professional quality Podcasts. Voices can easily be recorded using the built-in expertise of an audio engineer and Podcasts can be enhanced with radio-style sound effects and music jingles, chapter artwork and URL links. Talk show Podcasts are created easily by interviewing one or more guests simultaneously in iChat AV and recording directly into GarageBand 3. Podcasts can be posted for the world to enjoy on .Mac and submitted to iTunes® using iWeb. In addition, a new video track makes it easy to create music to score iMovie projects.

MacBook Pro with Intel Core Duo Processor Up to Four Times Faster Than PowerBook G4

MACWORLD EXPO, SAN FRANCISCO—January 10, 2006—Apple® today unveiled its new MacBook™ Pro notebook computer featuring the new Intel® Core™ Duo processor which delivers up to four times the performance of the PowerBook® G4. The new MacBook Pro, the first Mac notebook based on an Intel processor, features a stunning aluminium enclosure just one inch thin, weighs only 5.6 pounds, includes a built-in iSight™ video camera for video conferencing on-the-go, and the Apple Remote and Front Row™ software for a simple, intuitive and powerful way for users to enjoy their content wherever they go. The new MacBook Pro, available in February, also features Apple’s new patent-pending MagSafe™ magnetic power connector, designed especially for mobile users.

“MacBook Pro delivers dual-processor desktop performance in a thin, sleek notebook,” said Steve Jobs, Apple’s CEO. “The new MacBook Pro, with its Intel Core Duo dual-core processor, delivers the performance of not just one, but two G5 processors in the world’s most stunning one inch thin design.”

MacBook Pro features the new Intel Core Duo processor which delivers dual-core performance in a breakthrough power-efficient design, making it ideal for use in MacBook Pro’s thin and lightweight design. MacBook Pro is up to four times faster than the product it replaces, the PowerBook G4, running industry standard benchmarks.*

Every new MacBook Pro comes with a built-in iSight video camera for video conferencing on-the-go using Apple’s award-winning iChat AV, or recording a video Podcast or iMovie® using iLife® ‘06. MacBook Pro also includes Photo Booth, Apple’s fun-to-use application that lets users take quick snapshots with the built-in iSight video camera, add entertaining visual effects and share their pictures with the touch of a button.

The new MacBook Pro is the first notebook to feature Apple’s breakthrough Front Row media experience and the Apple Remote, turning MacBook Pro into a portable theatre.  Front Row gives customers a simple way to enjoy their content wherever they go— including songs from their iTunes® music library, photo slideshows from iPhoto, videos including Podcasts, iMovies and DVDs, and popular movie trailers streamed from apple.com—all from up to 30 feet away.

The new MacBook Pro also debuts Apple’s patent-pending MagSafe magnetic power connector, designed especially for mobile users. The MagSafe power connector makes charging the notebook’s battery easier than ever by magnetically coupling the power cord to the MacBook Pro. The MagSafe power connector safely disconnects from the notebook when there is strain on the power cord, helping to prevent the notebook from falling off its work surface when the power cord is inadvertently yanked.

The new MacBook Pro features a 67-percent brighter 15-inch display, which is now as bright as Apple’s Cinema Displays, and offers a completely new system architecture for faster performance, including a 667 MHz front-side bus that is four times as fast as the PowerBook G4 and 667 MHz DDR2 SDRAM memory expandable to 2GB that is twice as fast as the PowerBook G4. Each MacBook Pro comes standard with ATI Mobility Radeon X1600 PCI Express graphics, with either 128MB or 256MB of dedicated GDDR3 graphics memory. Each MacBook Pro includes built-in Bluetooth 2.0+EDR (Enhanced Data Rate), integrated AirPort Extreme 54 Mbps 802.11g WiFi wireless networking,** a scrolling TrackPad and Apple’s Sudden Motion Sensor that is designed to protect the hard drive in case of a fall.

The new MacBook Pro includes iLife ‘06, the next generation of Apple’s award-winning suite of digital lifestyle applications featuring major new versions of iPhoto®, iMovie HD, iDVD®, GarageBand™ and introducing iWeb™, a new iLife application that makes it super-easy to create amazing websites with photos, blogs and Podcasts and publish them on .Mac for viewing by anyone on the Internet with just a single click. All the iLife ‘06 applications are Universal applications that run natively on the new Intel-based MacBook Pros for maximum performance.

Every new MacBook Pro comes with the latest release of the world’s most advanced operating system, Mac OS® X version 10.4.4 “Tiger” including Safari™, Mail, iCal®, iChat AV, Front Row and Photo Booth, running natively on Apple’s first Intel-based notebook. Mac OS X Tiger includes an innovative software translation technology called Rosetta that lets customers run most Mac OS X PowerPC applications seamlessly.***

Availability
The new 15-inch MacBook Pro will be available in February .

The 1.67 GHz, 15-inch MacBook Pro includes:
• 15.4-inch widescreen 1440 x 900 LCD display with 300 cd/m2 brightness;
• 1.67 GHz Intel Core Duo processor;
• 512MB of 667 MHz DDR2 SDRAM, expandable to 2GB;
• 80GB Serial ATA hard drive running at 5400 rpm, with Sudden Motion Sensor;
• a slot-load SuperDrive™ (DVD±RW/CD-RW) optical drive;
• PCI Express-based ATI Mobility Radeon X1600 with 128MB GDDR3 memory;
• DVI-out port for external display (VGA-out adapter included, Composite/S-Video out adapter sold separately);
• built-in Dual Link support for driving Apple 30-inch Cinema HD Display;
• built-in iSight video camera;
• Gigabit Ethernet port;
• built-in AirPort® Extreme wireless networking and Bluetooth 2.0+EDR;
• ExpressCard/34 expansion card slot;
• two USB 2.0 ports and one FireWire® 400 port;
• one audio line in and one audio line out port, each supporting both optical digital and analogue;
• scrolling TrackPad and illuminated keyboard;
• the infrared Apple Remote;
• 60 Watt hour lithium polymer battery; and
• 85W AC power adapter with MagSafe magnetic power connector.

The 1.83 GHz, 15-inch MacBook Pro includes:
• 15.4-inch widescreen 1440 x 900 LCD display with 300 cd/m2 brightness;
• 1.83 GHz Intel Core Duo processor;
• 1GB of 667MHz DDR2 SDRAM, expandable to 2GB;
• 100GB Serial ATA hard drive running at 5400 rpm, with Sudden Motion Sensor;
• a slot-load SuperDrive (DVD±RW/CD-RW) optical drive;
• PCI Express-based ATI Mobility Radeon X1600 with 256MB GDDR3 memory;
• DVI-out port for external display (VGA-out adapter included, Composite/S-Video out adapter sold separately);
• built-in Dual Link support for driving Apple 30-inch Cinema HD Display;
• built-in iSight video camera;
• Gigabit Ethernet port;
• built-in Airport Extreme wireless networking and Bluetooth 2.0+EDR;
• ExpressCard/34 expansion card slot;
• two USB 2.0 ports and one FireWire 400 port;
• one audio line in and one audio line out port, each supporting both optical digital and analogue;
• scrolling TrackPad and illuminated keyboard;
• the infrared Apple Remote;
• 60 Watt hour lithium polymer battery; and
• 85W AC power adapter with MagSafe magnetic power connector.

New iMac is Twice as Fast as Predecessor

MACWORLD EXPO, SAN FRANCISCO—January 10, 2006—Apple® today unveiled the new iMac® featuring Mac OS® X running on the new Intel® Core™ Duo processor, delivering performance that is up to twice that of its predecessor.* The widely praised iMac design now features dual-core processors, a built-in iSight™ video camera for video conferencing out-of-the-box, and the breakthrough media experience of Front Row™ with the Apple Remote for a simple, intuitive and powerful way for consumers to enjoy their content from across the room. Starting at just £929 (inc. VAT), every new iMac comes with iLife® ’06, the next generation of Apple’s award-winning suite of digital lifestyle applications featuring major new versions of iPhoto®, iMovie® HD, iDVD®, GarageBand™ and introducing iWeb™, a new iLife application that makes it super-easy to create amazing websites with photos, blogs and Podcasts and publish them on .Mac for viewing by anyone on the Internet with just a single click. The new iMac is shipping today, and is the first of a new generation of Macs featuring Intel processors that Apple will roll out during 2006.

“The iMac has already been praised as ‘the gold standard of desktop PCs’, so we hope customers really love the new iMac, which is up to twice as fast,” said Steve Jobs, Apple’s CEO. “With Mac OS X plus Intel’s latest dual-core processor under the hood, the new iMac delivers performance that will knock our customers’ socks off.”

The new iMac features Apple’s breakthrough Front Row media experience and the Apple Remote, a simple way for customers to enjoy the content they have on their iMac—including songs from their iTunes® music library, photo slideshows from iPhoto, videos including Podcasts, iMovies and DVDs, and popular movie trailers streamed from apple.com—all from across the room.

Every new iMac comes with a built-in iSight video camera for out-of-the-box video conferencing using Apple’s award-winning iChat AV software, or recording a video Podcast or iMovie using iLife ‘06. The built-in iSight video camera takes advantage of the Intel Core Duo processor to deliver up to four times the resolution over the previous model. Each iMac also includes Photo Booth, Apple’s fun-to-use application that lets users take quick snapshots with the built-in iSight video camera, add entertaining visual effects and share their pictures with the touch of a button.

The new iMac comes standard with a SuperDrive™ for burning professional-quality DVDs, 512MB of 667 MHz DDR2 SDRAM memory expandable to 2GB, hard drive storage capacity up to 500GB, and ATI Radeon X1600 PCI Express-based graphics with 128MB of GDDR3 memory for outstanding graphics performance and realistic game play. With the latest high-performance connectivity options, the new iMac includes built-in 10/100/1000 BASE-T Gigabit Ethernet for high-speed networking, built-in AirPort® Extreme for fast 54 Mbps wireless networking,** built-in Bluetooth 2.0+EDR (Enhanced Data Rate), a total of five USB ports (three USB 2.0) and two FireWire® 400 ports. The new iMac now includes mini-DVI video output to connect up to a 23-inch Apple Cinema HD Display. With mini-DVI and the new iMac’s extended desktop mode feature, users can more than double their available screen real estate.

The new iMac was designed to be the perfect computer for iLife ‘06, the next generation of Apple’s award-winning suite of digital lifestyle applications featuring major new versions of iPhoto, iMovie HD, iDVD, GarageBand and introducing iWeb, a new iLife application that makes it super-easy to create amazing websites with photos, blogs and Podcasts and publish them on .Mac for viewing by anyone on the Internet with just a single click. All the iLife ‘06 applications are Universal applications that run natively on the new Intel-based iMacs for maximum performance.

Every new iMac comes with the latest release of the world’s most advanced operating system, Mac OS X version 10.4.4 “Tiger” including Safari™, Mail, iCal®, iChat AV, Front Row and Photo Booth, running natively on Apple’s first Intel-based desktop. Mac OS X Tiger includes an innovative software translation technology called Rosetta that lets customers run most Mac OS X PowerPC applications seamlessly.***



The new 17-inch 1.83 GHz iMac includes:
• 17-inch widescreen LCD display;
• 1.83 GHz Intel Core Duo processor;
• 512MB of 667 MHz DDR2 SDRAM expandable to 2GB;
• 8x SuperDrive with double-layer support (DVD+R DL/DVD±RW/CD-RW);
• PCI Express-based ATI Radeon X1600 with 128MB GDDR3 memory;
• built-in iSight video camera;
• built-in AirPort Extreme wireless networking & Bluetooth 2.0+EDR;
• 160GB Serial ATA hard drive running at 7200 rpm;
• mini-DVI out (adapters for DVI, VGA and Composite/S-Video sold separately);
• built-in stereo speakers and microphone; and
• the infrared Apple Remote, Mighty Mouse and Apple Keyboard.

The new 20-inch 2.0 GHz iMac includes:
• 20-inch widescreen LCD display;
• 2.0 GHz Intel Core Duo processor;
• 512MB of 667 MHz DDR2 SDRAM expandable to 2GB;
• 8x SuperDrive with double-layer support (DVD+R DL/DVD±RW/CD-RW);
• PCI Express-based ATI Radeon X1600 with 128MB GDDR3 memory;
• built-in iSight video camera;
• built-in AirPort Extreme wireless networking & Bluetooth 2.0+EDR;
• 250GB Serial ATA hard drive running at 7200 rpm;
• mini-DVI out (adapters for DVI, VGA and Composite/S-Video sold separately);
• built-in stereo speakers and microphone; and
• the infrared Apple Remote, Mighty Mouse and Apple Keyboard.