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:

2016 WWDC Keynote, June 13, 2016
Apple second quarter, 2016 earnings report, April 26, 2016
Apple 'Let Us Loop You In" Press Event, March 21, 2016
The Encryption Tightrope; Balancing Americans' Security and Privacy, March 01, 2016
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

Now AAPL Stock: 93.4 ( -2.7 )

WhatsApp now handles over 100M calls daily

WhatsApp is celebrating that it is being used for over 100 million calls every day. In a brief notice, the Facebook-owned messaging platform advises the voice-calling feature it rolled out to its users last year now deals with an average of over 1,100 calls initiated per second. Earlier this year, it increased the security of its calls and other messages, by introducing end-to-end encryption on all platforms. http://bit.ly/292HqCX

IPhone apps  8m

Adele's '25' album now streaming

Recording artist Adele has "pulled a Kanye" after saying that her current album "25" would not be available for streaming. The seven-month-old record, which has yielded a number of hit singles, is now available for streaming on all the major streaming services, such as Apple Music and Spotify, as of today in most major markets, with worldwide distribution to come. Reportedly, the singer had demanded streaming be limited to paid subscribers -- a condition that has hurt some streamers with artists, who aren't paid royalties for free or trial listens . Apple pays performers its normal royalty rates during its free trial, avoiding the issue -- and having repeated success in both signing up exclusives and placing those exclusives into the top of the charts. http://ti.me/28U7NOu

Audio  3h

SanDisk iXpand case has battery, storage

A new iPhone 6 and iPhone 6s case from SanDisk appears to be the "holy grail" of accessories: a stylish and protective case that offers both extra storage as well as the option of extra battery power as well. The iXpand Memory case offers either 32GB, 64GB, or 128GB of additional storage incorporated into the case, and an optional add-on battery pack (sold separately) adds up to an extra day or more of charge. Through the associated iXpand app, camera photos and videos can be automatically stored on the extra storage, optionally password-protected, The cost for the case is (in order of storage capacity) $60, $100, and $130. The battery pack's release data has not yet been announced, but the add-on should retail for an additional $30. http://bit.ly/291epHu

IPhone  14h

Fifth Hong Kong store to open June 30

The 46th official Apple store in what the company calls the "Greater China" region will open at 10AM local time in Hong Kong's New Town Plaza in the Sha Tin district on Thursday, June 30, according to a new page on Apple's retail website. Despite slowing growth due to economic turmoil in China, the country is still Apple's fastest-growing market. The new story will be the fifth for Hong Kong, a lucrative market for Apple thanks to the high concentration of wealth there and a thriving "gray" market. Normal store hours for the new store will be 10AM to 10PM every day. http://apple.co/291diaT

Apple  14h

Apple Music bug bites very short songs

There appears to be a reproducible bug in the current version of iTunes -- version 12.4.1, running on OS X 10.11.5, both the current non-beta versions of the respective software -- that causes a streamed song to become "stuck" in endless buffering if the streamed item just before this happened was 60 seconds or less in length. The problem appears to stem from code in iTunes that signals the next track to start downloading one minute before the currently-playing track is done, and thus songs shorter than one minute don't trigger the download. Locally-stored music is unaffected by the bug, and the problem does not appear to exist in either the macOS Sierra developer beta or versions of iTunes earlier than 12.4, and does not affect the iOS Music app at all. http://bit.ly/291cN0l

Developer  14h

Walmart Pay expands to 15 states

Walmart, one of the key progenitors of the failed CurrentC mobile payment system that was distinguished from Apple Pay by its ability to collect and share customer financial and buying data among its participants, has expanded the soft rollout of its alternative solution "Walmart Pay" to an additional 15 US states following a pilot program in Arkansas and Texas last month. Walmart continues to resist adding Apple Pay. The system, built into the Walmart app for iOS and Android, works with a complicated system of the camera scanning a purchase code at the register, then generating a QR code which is then scanned by the register. The system is available now in Alabama, Georgia, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, South Carolina, South Dakota, Tennessee, Virginia, and Washington, DC. http://apple.co/28SqZfu

IPhone apps  20h

Amazon refreshes entry-level Kindle

Amazon has added a new Kindle to its ebook reader range, one that is thinner and lighter than the previous entry-level model. Offering a six-inch 167-dpi touchscreen display, a doubled 4GB of storage, and an option for a white casing, the new model also adds in the ability to export highlights and notes to an email account as a PDF. Two versions of the all-new Kindle are available, priced at $80 including "Special Offers" and $100 without. http://amzn.to/28Q4c3R

Gadgets  1d