Apple Fiscal Q3 2013 : July 23, 2013

Apple's financial results conference call.
5:02 - CFO Peter Oppenheimer will start off the call, followed by CEO Tim Cook in the Q&A session.
5:03 - Oppenheimer: "We established a new June quarter record for iPhone sales ... total revenue reaching $35.3 billion."
5:04 - Net profits at $6.9 billion.
5:04 - 31.2 million iPhones, compared to 26 million in the same quarter last year.
5:04 - iPhone sales were "ahead of our expectations."
5:05 - "iPhone 5 remains by far the most popular iPhone, but we were also happy with sales of iPhone 4 and 4S."
5:05 - iPhone unit sales up 51% in the US.
5:06 - iPhone is the #1 smartphone in Japan (IDC numbers) and the #1 or #2 smartphone in a range of other markets.
5:08 - Oppenheimer highlights iPhone and iOS popularity in private companies and government agencies, DoD approval.
5:08 - 14.6 million iPads in the quarter, compared to 17 million in the same quarter last year.
5:09 - iPad ranked #1 in consumer satisfaction (JD Power).
5:10 - iPad used in major pharmaceutical companies, government agencies (USDA).
5:12 - Mac share up, as general PC sales slide by 11%.
5:13 - LA schools are planning iPad rollout for all students by 2014.
5:13 - $2.4 billion in App Store revenue.
5:13 - $4 billion in total revenue from iTunes software and services.
5:15 - 800,000 TV episodes, over 350,000 movies downloaded each day.
5:15 - Over 50 billion downloads on the App Store.
5:17 - Apple store revenues $4.4 billion, equal to same quarter last year.
5:17 - 408 stores total, 156 outside of US, nine expected to open next quarter.
5:17 - $10.1 million average revenue per store.
5:18 - 84 million visitors, 16,000/store per week.
5:18 - $146.6 billion in cash at the end of the quarter, up $1.9 billion.
5:19 - $2.8 billion distributed through dividends.
5:20 - Outlook: revenue between $34-$37 billion, margins between 36-37%.
5:21 - Oppenheimer is done with the numbers, moving on to analyst questions.
5:23 - Oppenheimer declines to shed more light on gross margin forecast for Q4.
5:23 - Tim Cook: iPhone and iPad inventory reduced significantly. iPad down 700k, iPhone down over 600k.
5:24 - "As you know .. we typically don't try to have any more inventory than we need."
5:24 - "We also had slight decreases for the Macintosh and the iPod."
5:25 - "From a growth point of view, our key catalyst will always be new products and services, in existing categories and new categories. In addition to this, we have opportunities in distribution."
5:26 - "We also have a market expansion opportunity ... so we have lots of growth opportunity. I don't prescribe to the idea that the high-end market has peaked."
5:27 - "If you look year-over-year [iPad sales], we had a 2.2 million unit decline, but 80% of that were just due to changes in channel inventory."
5:27 - "We hid in the midpoint of the range we expected for iPad sales, so it wasn't a surprise for us."
5:28 - "If there are lots of other tablets being sold, we don't know what they're being used for." (In reference to iPad's 84% web share numbers)
5:28 - "We had double-digit growth for iPad in Japan, India, China ..."
5:32 - "We were down 4% year over year on iPhone ASPs, about $27, primarily due to the mix of the product we're selling. As we anticipated, iPhone 4 sales accelerated ... sequentially it was down $32, again due to mix." - Oppenheimer
5:33 - "We saw very strong sales in several of the emerging markets and prepaid markets, India up over 400% ... in addition we also saw very strong sales in developed markets. " - Cook
5:34 - "Sell-through in China was only down 4% from the year-ago quarter. Hong Kong was down more significantly than that, mainland China was up. The economy there doesn't help us nor does it help others."
5:36 - Regarding trade-in programs. Cook - "We haven't announced anything regarding trade-in programs. The reason it's so attractive around iPhones is the residual value of the iPhone ... but we haven't announced anything." "We're not opposed to it, and we like the environmental aspect of it."
5:38 - Cook on China again - "Our revenue in China is about 14% of our total revenue ... it's a huge business for us. Underlying the results, if you look at iPads, the sellthrough was up ..."
5:39 - "We now have over 500,000 developers in China, up 70% we're continuing to invest in distribution." "China is a huge opportunity for Apple, and we're not discouraged by a 90-day type of cycle."
5:44 - Cook on Russia - "If you look at the Russian market, over 80% of phones are sold through retail ... We sell through a number of national chains; our iPhones set a record last quarter."
5:45 - "We are continuing to look for other relationships, to both add and enhance the ones we've got."
5:46 - Oppenheimer declines to answer a question regarding shipping time-frames for upcoming products.
5:47 - Cook - "The way I think about it is, we're here to make great products. If we focus on that and do that really well, the financial metrics will follow. We don't think about those things as being mutually exclusive."
5:51 - Cook on iPhone ASPs - "We don't project ASPs ... we saw significant growth clearly in the lower price point year-over-year, the iPhone 4 is still a great product, and the iPhone 5 is doing well. Typically for us, a product has its highest mix during its first few months of sales ... I don't see anything that fundamentally would change that, but we're going to look at this quarter to quarter..."
5:55 - Cook on iOS for cars - "I see it as very important, it is a part of the ecosystem... having something in the automobile is very important, it's something that people want and I think Apple can do this in a unique way."
5:55 - The conference call has come to a conclusion.

Previous Live Event Coverage:

Apple quarterly earnings report, January 26, 2016, January 26, 2016
Apple fourth quarter 2015 earnings call, October 27, 2015
Apple September 9 "Hey Siri" launch event, September 09, 2015
Apple's third quarter 2015 earnings announcement and conference call, July 21, 2015
2015 WWDC Keynote - The Epicenter of Change, August 06, 2015
Apple's September 9 event, September 09, 2014
WWDC 2014 keynote, June 02, 2014
WWDC 2014, June 02, 2014
Apple fiscal Q4 conference call, October 28, 2013
Apple's October 22 media event, October 22, 2013
Apple's September 10 event, September 09, 2013
Samsung Unpacked at IFA, September 04, 2013
Samsung Unpacked 2013 Episode 2, September 04, 2013
Apple fiscal Q3 2013 , July 23, 2013
WWDC 2013 Keynote, June 10, 2013
Apple fiscal Q2 2013 earnings call, April 23, 2013
Apple iPad mini unveiling, October 23, 2012
Apple iPhone 5 launch event, September 12, 2012
Apple Financial Conference Call Q3 2012, July 24, 2012
Live 2012 WWDC Coverage, June 11, 2012
Apple fiscal Q2 2012 results call, April 24, 2012
Apple cash balance call, March 19, 2012
Apple's iPad 3 Event, March 07, 2012
Apple fiscal Q1 2012 results call, January 24, 2012
Apple FYQ4 Quarterly Results, October 18, 2011
Apple - Let's Talk iPhone, October 04, 2011
Apple July Conference Call, July 19, 2011
Live WWDC 2011 Event Coverage, June 06, 2011
Google I/O 2011 day one keynote, May 10, 2011
Apple fiscal Q2 2011 results call, April 20, 2011
March 2 iPad event, March 02, 2011
Intel Thunderbolt Technology, February 24, 2011
HP webOS event, February 09, 2011
Google Android event, February 02, 2011
Apple January January 2011 fiscal results call, January 18, 2011
Verizon NYC Event, January 11, 2011
Google Chrome Event, December 07, 2010
Acer's Interact event, November 23, 2010
Back to the Mac, October 20, 2010
Apple's FYQ4 2010 results, October 18, 2010
Google TV Intro, October 12, 2010
Apple Sept 1 music event, September 01, 2010
BlackBerry August 3 Event, August 03, 2010
Apple iPhone 4 Press Conference, July 16, 2010
Sony E3 Keynote, June 15, 2010
Nintendo E3 Keynote, June 15, 2010
Microsoft E3 Keynote, June 14, 2010
WWDC 2010, June 07, 2010
D8 conference 2010, June 01, 2010
Google I/O Keynote II, May 09, 2010
Google I/O Keynote, May 19, 2010
Apple earnings - 2010, April 20, 2010
iPhone OS 4.0, April 08, 2010

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