Apple Fiscal Q4 Conference Call : October 28, 2013Apple's fiscal Q4 financial conference call
4:57 - The conference call is scheduled to begin at 2pm Pacific, 5pm Eastern.
5:02 - Apple CEO Tim Cook and CFO Peter Oppenheimer will be the executives on the line.
5:03 - Tim Cook - "We had a strong finish to an amazing year."
5:03 - "Apple's business is stronger than ever."
5:03 - "We're winning with our products in all the ways that are important to us."
5:04 - Cook reiterates new hardware introductions, iOS 7, OS X Mavericks.
5:06 - Q4 earnings of $37.5 billion, net income of $7.5 billion, one acquisition every 3-4 weeks on average.
5:07 - 33.8 million iPhones, 14.1 million iPads, 4.6 million Macs, $4.3 billion from iTunes, software and services.
5:08 - Tablet market is expected to jump from 225 million units this year to over 400 million units next year.
5:10 - Apple is "a force for good in the world." Cook also thanks customers and employees for their contributions.
5:10 - Oppenheimer takes over to talk specifics.
5:11 - Oppenheimer notes NTT DoCoMo deal as a significant development for the quarter.
5:11 - Changewave measured 96% customer satisfaction rate; 63% of respondents to a separate survey showed preference for iPhone.
5:12 - Users spending more than 50% more time on their iPhones than on other phones.
5:12 - Over 14k staff at Johnson Controls are using iPhones, also popular at AVIC.
5:13 - 14.1 million iPads, with sales up in Japan, Russia and the Middle East.
5:13 - iPad accounted for approximately 90% of all tablet activations, 95% of enterprise app activations.
5:14 - Oppenheimer boasts of extensive iPad use growth in enterprise and in schools.
5:15 - School use up internationally and in the US.
5:16 - Mac sales down, but higher numbers than expected. 4.6 million, compared to 4.9 million in the same quarter last year.
5:17 - MacBook Air still selling well. Oppenheimer highlights the recently announced devices as well.
5:17 - iTunes software and services - $4.4 billion in revenue.
5:18 - 22% increase over last year, $13 billion in developer payouts.
5:20 - Oppenheimer highlights Mavericks and iOS 7 new features (reiteration from prior announcements).
5:20 - Retail stores - $4.5 billion in revenue, a 6% gain over last year. Eight new stores opened, more planned for the rest of the year.
5:21 - 99 million visitors across the three-month period.
5:22 - Moving on to cash - $148.6 billion in the coffers, $35.5 billion in the US (75% offshore).
5:25 - $2.8 billion in dividends. 47 million shares bought back.
5:26 - Next month's dividend payment - $3.05 per share.
5:26 - All OS X updates will be free going forward, requiring a larger revenue deferral of $55-58 billion in 2014.
5:27 - Forecast for fiscal Q1 2014 - $55-58B in revenue, 36.5-37.5% gross margin, $4.4-4.5B operating expenses, 26.5% tax rate.
5:28 - Tim Cook talks Touch ID and 64-bit mobile architecture, "if you've used it... you know that it's pretty profound."
5:32 - Cook on iPhone 5c reception, placement - "Our entry iPhone is the iPhone 4s" and the company has successfully grown its midrange and high-end offerings.
5:37 - Cook fields another question about iPhone offerings - 4S is replacing the 4 as the entry-level phone, now free with carrier subsidies in the US.
5:39 - Cook on China - "We have a reasonable-size business there," late iPad launch impacted revenue. "We're continuing to go out to more cities ... we're looking at launching earlier."
5:41 - Oppenheimer on revenue deferral - iPhone/iPad approximately $25/device, due to free software (iWork, iLife).
5:41 - Revenue recorded over a two-year span for iOS devices, across four-year period for Mac.
5:47 - Cook on the iPad Air - "the most incredible product we've ever done."
5:49 - Regarding the free-software strategy, Cook says they wanted iLife and iWork to be part of the core Mac experience. He makes a dig at $199 for software, a thinly veiled reference to Windows.
5:50 - Cook on education - iPad's tablet share in education is 94% "I've never heard of a share that high before."
5:50 - The next analysts asks if Apple will be able to meet holiday iPhone demand.
5:51 - "iPhone 5s ended the quarter with a very significant backlog ... however, our supply is building each week. We are very confident in our ability to keep ramping."
5:52 - iPad mini with Retina display will ship later in November - "unclear if we will have enough."
5:56 - Cook admits that including China and Japan in the first iPhone launch caused pressure on inventory, millions of iPhones were in transit to customers and therefore included in channel inventory numbers.
6:00 - Oppenheimer declines to forecast average selling prices for the next quarter.
6:01 - Cook on carrier subsidies - new offerings from some carriers essentially reduce subsidies but many customers prefer to get a new phone earlier.
6:01 - The conference call has come to a conclusion.