Apple Fiscal Q2 2013 Earnings Call : April 23, 2013Fiscal Q2 earnings conference call
5:20 - Tim Cook begins the call, "a lot of news to share with you today" including an increase to Apple's capital-return program.
5:20 - Over $43.6 billion in revenue, net profit over $9.5 billion.
5:20 - 37.4 million iPhones sold, 19.5 million iPads.
5:20 - "Although we've achieved incredible success, we acknowledge that our growth rate has slowed."
5:20 - Fiscal 2012 performance was very strong, making comparisons difficult with fiscal 2013.
5:20 - Flat revenue year-over-year guidance for June quarter.
5:20 - "Most important objective for Apple is creating innovative products, and that is completely within our control."
5:20 - "Our teams are hard at work at new hardware, software and services."
5:20 - "Relentless focus on making world-class products that change people's lives."
5:20 - $100 billion to be returned to shareholders by 2015, majority in share repurchases.
5:20 - $4.4 billion (11%) revenue increase over last year's quarter. Strong revenue from iTunes, iPhone and Mac.
5:21 - 37.4 million iPhones for the quarter, up 7% from last year's quarter.
5:21 - Oppenheimer - 65% increase in iPad sales, particularly strong growth in China and Japan.
5:21 - iPod share continues to hold over 70%, more than half of which are the iPod touch.
5:22 - Oppenheimer - "The market suggests iPad Mini purchasers are first-time iPad customers."
5:23 - Desktop Mac growth helped offset decline in MacBook sales.
5:23 - iTunes revenue jumped by 28 percent year-over-year.
5:23 - App downloads surpass 45 billion.
5:23 - Year-over-year iOS app revenue more than doubled.
5:24 - Retail store revenue - $5.2 billion, up 19%, driven by iPhone and iPad.
5:24 - 30 new stores expected to open in fiscal 2013, at least 20 to be remodeled.
5:25 - 91 million visitors, up from 85 million
5:26 - $1.95 billion share repurchase in December, 4 million shares repurchased
5:27 - $50 billion increase in the buyback program, totaling $60 billion (initial promise was $10 billion)
5:28 - Dividend to jump from from $2.65/share to $3.05/share, payable mid May. Annual payments over $11 billion.
5:30 - Revenue forecast between $33.5 billion to $35.5 billion, compared to $35 billion in last year's quarter.
5:31 - Gross margins expected to fall between 36% and 37%
5:31 - The call is now open to analyst questions.
5:34 - Oppenheimer answers questions about margins, says iPad Mini and changes to service policies contribute to lower margins.
5:38 - Cook answers a question about China - Apple had its best-ever quarter in China, with $8.8 billion in revenue, sees a "significant opportunity" in the country, "it's a great market." China has a large number of first-time buyers, driving the company to adapt its approach.
5:40 - Cook on competition "Smartphone market is always competitive... names of competitors change. Today it's Samsung married to Google on the operating system side. They're tough competition, but we've got the best products by far, the best ecosystem, and we're going to keep making it better and better."
5:40 - Cook declines to talk specifics about launch timing for new products, but notes "great stuff coming in the fall and across 2014."
5:45 - Oppenheimer on declining cost curves - Apple is making progress on cost curves, with iPhone ASPs down $28 due to the mix of iPhone 4 and iPhone 5 shipments.
5:50 - Cook on potential loss of smartphone market share - Apple only declined 15% while the broader market fell by 30% from December (IDC numbers). "You have to look at sell-through to look at underlying demand." The company doesn't view market share as the "only measure of our health, we look at customer satisfaction, loyalty and repurchase rates."
5:51 - "Market share is important and unit numbers are important, but these other things are extremely important. That said, we see a lage number of first-time smartphone buyers coming to market in countries around the world."
5:55 - Cook on 5" smartphones - "My view continues to be that the iPhone 5 has the absolute best display in the industry, and we always strive to create the very best display for our customers." Competitors made sacrifices to resolution, white balance, color quality, screen longevity, portability.
5:55 - "We wouldn't ship a larger iPhone while these tradeoffs exist."
5:59 - Cook on fragmentation - "We are not fragmented like our competition; we can update an OS with a major release and a substantial number of our customers update to the latest software."
5:59 - "Because iOS usage is much higher, when we integrate things well, people use them more."
6:00 - Cook on Mac sales - "Market for PCs is incredibly weak... we sold 20 million iPads, and it's true the iPads cannibalized some Macs. I don't think it's a huge number, but it's some."
6:01 - "I don't think [the computer] market is a dead market or bad market by any means. We're going to keep innovating."
6:05 - Cook on staggered launches - "I don't spend a lot of time looking back, frankly if we could do it over, I would have announced the iMac after that time of year.
6:05 - "For the iPad Mini, I would not have done that differently. We got the iPad Mini out to millions of customers. We did a lot... fortunately our teams can do a lot."
6:06 - The conference call has come to an end.