Apple Fiscal Q4 Conference Call : October 28, 2013
Apple'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.
 
5:02 -
 
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.
 
Previous Live Event Coverage:

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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