• End of conference call.
• How short on iPad and iPhone 4 demand? Cook: “Apple does not have enough supply, so there’s no way to know for sure how large demand is… We’re confident we can pick up the supply.”
• Oppy: With iPhone 4, we have been very aggressive with the price point. It has a higher cost structure than the previous model.
• Cook: “We are very happy to be a partner with AT&T… They’ve been a first class partner… That’s all I have to say about that.”
• Does Apple see iPad halo effect? Cook: “We focus on the synergy between [products]… iPod created a halo for the Mac… Could that happen on iPhone and iPad? … Mac has outgrown the market for 17 straight quarters, but the Mac’s share is still low, so there’s quite the opportunity there… This is why it’s great to have a low share because if it turns out that the iPad cannibalizes personal computers, there’s a lot of PCs to cannibalize.” (More of then Windows than Macs).
• Spain will go from exclusive iPhone carrier model to 3 carriers.
• Mac sales grew 144% in China 184% in Korea, 59% in Spain where the economy was tough.
• Cook: In Asia pacific, mac sales grew 73% YOY. “Phenomenal”
• Cook: Our growth of the company – we’re growing faster internationally than in U.S., however, to put it into perspective, the Americas are growing at 40%.
• Cook: Total cellphone market will increasing become a smartphone market
• FaceTime on Macs, PCs, etc? Cook won’t answer: “We’ll save that for another day.”
• Mac mix: Cook, “There’s clearly a move to mobility.”
• Cook: We value the input of every developer; we are very open to any kind of feedback
• Cook: Most of us do not want pornography and graphic images on the platform
• Cook: Vast majority of apps are approved within 7 days of submission
• 225,000 apps, over 5 billion downloads, $1 billion in payments to developers, iAd’s primary objective to deliver revenue to developers.
• Cook: $15 per month data plans (to start), no contract and a low initial device price seems to be what the customer wants
• Cook: Anecdotally, iPad is beyond early adopter situation; this is the fastest he’s ever seen that happen for any product with which he’s been involved.
• Android competition? Cook: “iPhone sales were up 61% despite inventory drawdowns and product transition. IDC forecast 38% growth for smartphone market, so Apple is growing substantially faster than the market.
• iPhone bumper give away impact? Oppy: Defer revenue for iPhone 4 units that Apple sells where bumpers have not been delivered/where they have not heard from customers. Will record that as revenue in Dec. quarter. Apple will expense the cost of the bumpers as they ship them to customers.
• iPad margins to increase? Oppy: “We were purposely aggressive on iPad [prices] coming out of the chute… We are always working on becoming more efficient and ride down the cost curves.”
• iPad cannibalizing iPod touch? ASP down about $7 sequentially, driven by start of Back to School promo
• Cook on iPhone 4: “We are selling units as quickly as we can make them. We have more work to do [on balancing supply and demand].
• 1.4 million iPhone 3GS and 3G units in channel on June 26th (end of quarter). Currently, Apple has materially less than that.
• Oppy: North Carolina data center is on schedule. Expect it to be completed by the end of calendar 2010 and then Apple expects to use it.
• iPad cannibalization of other Apple products? Cook: “We’ve only been selling for 3 months, so it’s too early to tell. We are thrilled to have had record Mac unit sales in same quarter as iPad launch. For us, that’s a jaw-dropper.”
• Apple will not disclose the splits between iPad Wi-Fi and iPad Wi-Fi + 3G models. Overall ASP for iPad: $640.
• Cook: “Our guts tell us than this [iPad] market is very big. We are working very hard to get iPad out to as many people as we can.”
• Cook: We honestly don’t know when iPad and iPhone 4 supply/demand will come into balance.
• Cook: iPhone 4 “returns are less than iPhone 3GS.”
• Cook: “My phone is ringing off the hook from people who want more [iPhone 4] supply.”
• Cook: “We are selling every iPhone 4 unit we can make currently.”
• We are working very hard to meet iPhone 4 demand.
• Why does Apple still have shortages of iPhone? Cook: “We do not purposely create a shortage for buzz. Demand for iPhone 4 is absolutely stunning.”
• 2.45 million iPhone units in channel at end of quarter with about 1 million of those units in transit, not available for sale
• Cook: We greatly reduced shipments of iPhone 3GS, so we had significantly lower sales after iPhone 4 debut on June 7 until product launched.
• iPhone 4 has a higher cost structure than previous product, so margins are lower for iPhone 4 than for 3GS
• iPhone 4 and iPad will negatively impact gross margins due to supply chain and other product costs that will increase in Q4
• Cook: iPhone 4: We are still ramping and increasing volume
• Cook: We are increasing iPad capacity as quickly as possible; confident they will be able to ramp to meet demand
• Cook: “High demand is never a problem.”
• Apple working around the clock to get supply and demand in balance for both iPad and iPhone 4
• iPad and iPhone 4: Appel not able to fill demand; selling both products as fast as they can make them
• Mac and iPod: no significant supply/demand issues last quarter or currently
• Oppy: Higher iPhone and accessory sales boosted revenue about prior guidance
• Cook: 50% of Fortune 100 deploying or testing iPad
• Mac had an incredible quarter; we are seeing businesses having increasing interest in Macs. Mac unit. sales grew 33% YOY
• Corporate adoption: COO Tim Cook: iPhone up to more than 80% of Fortune 100, 60% of Fortune 500 deploying or piloting iPhone
• Apple is very pleased with market share gains for iPhone, Macs, and iPods
• Q410 guidance: Revenue of “about $18 billion” and diluted earnings per share of “about $3.44″
• Free Bumper cases mean Apple will defer revenue of about $175 million to be realized in Q111
• Preservation of capital remains Apple’s focus
• 26.5% expected tax rate in Q410
• 24.2% tax rate for the quarter; lower than expected due better mix of foreign earnings
• 24 more stores coming this quarter around the world
• 293 stores open at end of quarter
• About half of Mac sold to customers who’d never owned a Mac before
• Apple Retail Stores sold 677,000 Macs, up 38% YOY
• July 23: iPad comes to 9 more countries
• $640 iPad ASP
• 100 million iOS device milestone surpassed during quarter
• iPhone currently on 154 carriers in 88 countries
• iPhone and iPhone-relaed revenue during quarter was $5.33 billion vs. $3.06 billion YOY, 76% increase $595 ASP
• 1.7 million iPhone 4′s sold in countries in which it was launched during the quarter
• Over 5 billion apps downloaded from App Store.
• iTune Store revenue exceeded $1 billion revenue in quarter
• iPod touch grew 48% YOY. ASP grew 12%. Total iPod revenue growth 4%
• Apple CFO Peter Oppenheimer: “We are extremely pleased.”
• AAPL, after-hours, 5:03pm EDT, +$8.47, +3.36%, $260.36 per share.
• 3.27 million in first quarter on market
• 9.41 million iPods, 8% decline YOY
• 8.4 million iPhones, 61% growth YOY
• 3.47 million Macs during the quarter; new quarterly record; 33% unit increase YOY
• $3.51 per diluted share (vs. $2.01 per diluted share in Q309)
• Net quarterly profit of $3.25 billion (vs. $1.83 billion in Q309)
• Record revenue of $15.7 billion (vs. $9.73 billion in Q309)
5 Day Most Commented