Live notes taken during Apple’s conference call discussing Q3 06 financial results in reverse chronological order.
– End of conference call.
– Once again: Apple is very confident in and excited about the products in the pipeline.
– Music phones aren’t ready to compete with iPod now, but that is likely to change in the future. Apple is “not sitting around doing nothing.”
– Apple is very confident in their ability to compete and excited with what’s in the product pipeline.
– Apple hopes that governments will be hands-off and let the market decide on music players and online services.
– Apple has seen no impact from Sony products on iPod that they can comment on.
– Apple will not comment on iPod shipments on a geographic basis.
– It takes longer to deploy a new product (MacBook for example) in Europe than in USA.
– Schiller is interim Japan marketing chief.
– Is Japan performing up to expectations? Apple looks to improve in Japan. Japan marketing team will report to Phil Schiller.
– Will there be any surprises at WWDC? Apple says you’ll have to wait and see.
– Has action in France posed any threat to iTMS? Apple thinks such actions will result in “state-sponsored piracy.”
– Boot Camp makes the Mac “even more appealing” for them to switch.
– Boot Camp downloads are “significant.”
– Apple broke 50% iPod share in Japan.
– Apple saw iPod share gains in several countries in Europe.
– Apple does not break out individual products for competitive reasons.
– Apple does not disclose information about the size of the “Pro” market.
– Mac OS X Tiger sales were “good.”
– Apple believes that Mac OS X is the best operating system and a reason why they’re gaining share.
– Best Buy pilot program in a “few” of their stores underway for “about two months” with Apple employees in the stores. Pilot program still be evaluated.
– Mac with free iPod promo not significant to iPod sales for the quarter.
– Apple very happy with Intel processors.
– MacBook supply vs. demand looks balanced for Q4.
– Apple will continue to be “aggressive” in Mac and iPod pricing.
– iPod gross margin up sequentially in the quarter due to favorable commodity market. Same for Macintosh.
– Approx. 7,000 Macintosh reseller distribution points worldwide.
– Approx. 40,000 iPod reseller distribution points worldwide.
– Total revenue from stores up 29%.
– Apple looks forward to showing Mac OS X Leopard at next month’s WWDC.
– Apple does not discuss unreleased products.
– Apple Computer shares up over 8.0% to $58.44 in after hours trading on heavy volume of 8.23 million shares.
– Macs in retail were up 40% year-over-year. Strong MacBook Pro and MacBook sales.
– Education: College Students Buy a Mac & get a free iPod nano promo doing very well.
– Pro customers are waiting for pro apps (read: Photoshop) that are Universal and for an Intel-powered desktop “Pro Mac.”
– Very robust consumer and higher education demand.
– DRAM market is “relatively balanced” market.
– NAND flash, flat panel displays, hard drives are favorable.
– Apple going into first full quarter of MacBook availability.
– Apple expects favorable commodity market to continue.
– Apple extremely excited about future iPod products in pipeline.
– Apple very confident of products in pipeline.
– Apple pleased with Intel transition.
– Apple expects GAAP earnings per diluted share of about $.46 to $.48, including an estimated $.03 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.49 to $.51.
– Apple expects revenue of about $4.5 to $4.6 billion for Q4 2006.
– Apple education sales highest in a decade.
– 154 Apple retails Stores now open with 14 opened during quarter.
– 50% of Mac buyers at Apple Retail Stores are new to Mac.
– A total of 17 million customers visited stores during quarter.
– $715 million revenue from Apple Retail Stores.
– iTunes Store has 85% market share according to Nielsen/Soundscan.
– Apple feels Mac ad campaign is working.
– iPod continued to earn a US market share of over 75 percent.
– Intel-powerd Pro Mac and Xserve due by end of 2006.
– International sales accounted for 39 percent of the quarter’s revenue.
– Gross margin was 30.3 percent, up from 29.7 percent in the year-ago quarter.
– Apple shipped 1,327,000 Macintosh computers and 8,111,000 iPods during the quarter, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.
– The Company posted revenue of $4.37 billion and a net quarterly profit of $472 million, or $.54 per diluted share.
– Second highest earnings and revenue in Apple’s history.
– Apple CFO Peter Oppenheimer and Apple COO Tim Cook are present for the call.
– Apple Computer shares have surged 7.7% to $58.25 in after hours trading on heavy volume.
– Awaiting beginning of conference call.
‘Fantastic quarter’ helps Apple double share of U.S. retail notebook market to 12% – July 19, 2006
Apple reports third quarter results: $0.54 per share on $4.37 billion in revenue – July 19, 2006