Apple Fiscal Q3 2013 : July 23, 2013Apple'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.