Originally Posted by swise

Last quarter, when 7 million iPods were sold in 3 months, the iPods accounted for about a third of revenue. Profit margin on them is, of course, significantly less than the margin on CPUs. CPU sales increased more than 50% year-over-year (compared to, I think, 17% for the industry). The quarter before was much the same, as was the quarter before that. Yes, the iPod is boosting revenue and to a lesser extent profit, but Mac sales are also going through the roof and ultimately contribute much more to the bottom line.