Apple execs answer analyst questions

Following Apple's announcement of yet another record-breaking quarter, several executives highlighted the success of several product divisions, including Macs and the iPod touch, during a conference call for investors. Although overall iPod shipments were down for the quarter, the company reported a 55 percent jump in iPod touch sales compared to the same quarter last year. The shift helped boost average selling prices by approximately 9 percent.

The company also performed well in a variety of international markets, which now account for over half of all revenue. Mac sales doubled in China, with Australian buyers pushing a 70 percent increase. Apple's computers also showed at least 40 percent growth in Italy, France, Spain and Switzerland.

Traffic in Apple's retail stores reached 50.9 million visitors in the recent quarter, marking an increase of 9 percent. Following a similar trend to earlier quarters, half of all Mac customers in the retail outlets were first-time buyers of Apple's computer platform. The company plans to add 40 to 50 additional stores in its fiscal-year 2010, with half of the locations placed internationally.

The iPhone also provided a boost to Apple's international performance, with Japanese customers driving 400% growth compared to the same quarter last year. Overall sales in the Asia Pacific region showed strength, as the iPhone was extended to new carriers in countries such as Korea.

Tim Cook answered analysts' questions regarding criticism aimed at AT&T over poor iPhone service. He defended the exclusive relationship, claiming the carrier has informed Apple of plans to remedy the issues in several cities. Company executives are allegedly satisfied with the situation, although Cook did not provide specific details.

Despite the notion of a beneficial partnership with AT&T, Cook admitted that the iPhone has achieved significant market-share growth in countries that sell the device through multiple carriers. He cautioned, however, that Apple does not view non-exclusive distribution as the best strategy for every market.

As expected, the executives remained reticent to speak about new product categories such as the rumored tablet. Tim Cook claimed he did not want to "spoil the surprise" that will be the focal subject of Apple's media event on Wednesday.

by MacNN Staff