MacDailyNews presents live notes from Apple’s Q415 Conference Call with analysts starting at 5pm EDT/2pm PDT today.
Apple will provide live audio streaming of its FY 15 Fourth Quarter Results Conference Call using Apple’s industry-leading QuickTime multimedia software.
The live webcast will begin at 2pm PDT/ 5pm EDT on Tuesday, October 27, 2015 at here.
Apple today announced financial results for its fiscal 2015 fourth quarter ended September 26, 2015. The Company posted quarterly revenue of $51.5 billion and quarterly net profit of $11.1 billion, or $1.96 per diluted share. These results compare to revenue of $42.1 billion and net profit of $8.5 billion, or $1.42 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 38 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.
Apple Inc. Q4 2015 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Live notes from Apple’s Q415 Conference Call in reverse chronological order:
• End of conference call
• AAPL After Hours : 114.22 Down 0.33 (0.29%) 5:59PM EDT
• Cook: We would like to make things as easy as possible for the customer, working with service providers to offer iPhone Upgrade Program
• Cook: The iPhone 6s is the most popular iPhone we sell today
• AAPL After Hours : 114.10 Down 0.45 (0.39%) 5:55PM EDT
• Luca on ASPs: Commodity environment has been quite favorable and we expect it to remain favorable; new products naturally cost more when they are first introduced
• Cook: In China, over 50% of those who bought an iPhone 6/Plus/6s/Plus were buying their first iPhone. As you go down in iPhone models (5s, etc.), that number increases.
• Luca: With price increases due to currency exchange rates, iPhone sales have remained strong. So far, Apple is encouraged.
• In China 68% of people who purchased an iPad were purchasing their first tablet. Some 40% of those were buying their first Apple product. This could lead to future Apple product purchases
• Cook: We want to add a lot more people to the iOS ecosystem
• Cook: 69% of iPhones users who do not yet have newer iPhones is tremendous headroom, much potential
• Cook clarifies on Android switchers: For customers who purchased an iPhone last quarter and who owned a smartphone prior, 30% came from Android which is the largest percentage Apple has ever recorded since they began measuring it 3-4 years ago.
• AAPL After Hours : 114.22 Down 0.33 (0.29%) 5:46PM EDT
• Cook: Frankly, if I were to turn off the media and just look at how many customers are coming into our stores, online, sales trends, I wouldn’t know there was any issue with China’s economy. I think the west misinterprets CHina’s economy sometimes. You really can’t tell the difference at the consumer level for Apple in China. Cook expects China to become Apple’s top market in terms of sales, developers, ecosystem.
• Cook: Greater China saw 87% growth. The rest of the market actually shrank.
• Cook: I do not envision Apple having a large enterprise direct sales force
• Cook on the enterprise: iOS continues to get more and more enterprise features. That will continue, perhaps with a little more intensity.
• AAPL After Hours : 114.79 Up 0.24 (0.21%) 5:40PM EDT
• Maestri: The guidance we’ve provided is actually incredible given the currency headwinds
• Cook: The upgrade programs, the LTE penetration on emerging markets, the Android switcher rates, new iPhone headroom – all will affect iPhone growth
• Cook: iPhone Upgrade Program and other such programs will help compress the iPhone upgrade cycle (expect to begin seeing meaningful results a year from now)
• Cook: Virtually everywhere I look, I see significant opportunity
• Cook: Very happy with Apple Music uptake, subscription levels
• Cook: The enterprise business is not to be underestimated
• Cook: Apple TV is off to a great start. Apple Watch is just getting going.
• iPhone 6/Plus and 6s/Plus only comprises some 30% of iPhones in use, so there is plenty of headroom
• Cook: We recorded the highest rate on record for Android switchers at 30%
• Cook: Consider the currency headwinds. Apple’s growth is actually quite good in Q116.
• AAPL After Hours : 114.86 Up 0.31 (0.27%) 5:25PM EDT
• Apple’s board of directors has declared a cash dividend of $.52 per share of AAPL common stock payable on November 12, 2015 to shareholders of record as of the close of business on November 9, 2015.
• $14 billion in share repurchases, over $3 billion in dividends paid during the quarter
• Apple exited the quarter with $205.7 billion in cash and marketable securities. $197 billion located outside the U.S.
• 463 total Apple Retail Stores now open, 195 outside the U.S. Apple plans to open or replace between 40-60 stores over the next year
• “Other Products” grew strongly, thanks to Apple Watch; now available in 32 countries and over 5,000 locations
• $5.1 billion in services revenue, mainly due to strong growth from apps
• Apple very excited about potential of iPad Pro in the enterprise
• Over 55 apps in IBM MobileFirst for iOS program
• AAPL After Hours : 115.88 Up 1.33 (1.16%) 5:18PM EDT
• iPad 74% share of U.S. commercial tablet market
• iPad customer metrics remain extremely positive: 97% consumer satisfaction rate; 95% corporate sat. rate
• 5.7 million Mac is an all-time quarterly record. Mac growth driven by MacBook. MacBook Pro sales also remain strong
• We returned $17 billion to our investors during the quarter through share repurchases and dividends, and we have now completed over $143 billion of our $200 billion capital return program
• Apple’s record September quarter results drove earnings per share growth of 38% and operating cash flow of $13.5 billion
• International sales accounted for 62 percent of the quarter’s revenue
• Growth was fueled by record fourth quarter sales of iPhone, the expanded availability of Apple Watch, and all-time records for Mac sales and revenue from services
• Severe currency headwinds. without them, 800 basis points higher
• Luca Maestri: Apple posted quarterly revenue of $51.5 billion and quarterly net profit of $11.1 billion, or $1.96 per diluted share. These results compare to revenue of $42.1 billion and net profit of $8.5 billion, or $1.42 per diluted share, in the year-ago quarter
• Cook thanks employees and customers
• Apple News just launched in Australia and the UK
• Nearly 40 million people are reading Apple News
• ResearchKit continues to grow
• Over 50 automobile models incorporating CarPlay
• Over 50 HomeKit products on the market
• Over 1,600 HealthKit apps
• Apple partnering with AMEX on Apple Pay in select countries around the world
• Apple Pay continues to see double digit growth month after month
• Apple Music arrives on new Apple TV this week
• Apple Music: Over 15 million users with over 6.5 million paying subscribers
• iOS 9: 61% of iOS devices now running it within first 5 weeks
• Next month, iPad Pro ships
• Apple TV preorders began strongly this week
• Cook: On track to achieve 40 stores in China by year end
• Cook: I’ve personally heard from customers who credit Apple Watch with saving their lives
• Today, there are over 13,000 Apple Watch apps and over 1,3000 native Apple Watch apps
• Exited quarter with iPhone 6s/Plus demand outstripping supply; working hard to get into balance
• Momentum for iPhone 6s/Plus continue to be strong, strong interest around the world
• Record-breaking September quarter
• Cook: Apple Watch in the very early innings. Call Apple Watch “a promising new part of our business.”
• Cook: Our growth in one year was greater than the revenue generated by 90% of the companies in the Fortune 500
• Tim Cook: “A very strong finish” to the fiscal year
• Nancy Paxton starts call with the usual disclaimers
• Start of conference call
• AAPL After Hours : 116.69 Up 2.14 (1.87%) 5:00PM EDT
• Even with massive buybacks and dividends ($17 billion during the quarter), Apple’s cash and investments jumped to $206 billion, a whopping 33% increase YOY
• AAPL After Hours : 116.41 Up 1.86 (1.62%) 4:54PM EDT
• 
• CNBC: Apple shares climb after top and bottom line beat
• AAPL After Hours : 117.77 Up 3.22 (2.81%) 4:46PM EDT
• Awaiting start of conference call.