| Highlights from Apple Q2 2012 financial results conference call Apr 24th 2012, 21:02 Apple is holding their Q2 2012 financial results call, and we're here to break down anything interesting they might say. Apple made a ridiculous amount of money again, with 35.1 million iPhones, 11.8 million iPads, 7.7 million iPods, $11.6 billion in profit. Live updates, after the break! Source: www.apple.com/quicktime/qtv/earningsq212 - Peter Oppenheimer (PO): Record quarter again. Strong growth in iPhone and iPad. 15.4 billion in operating margin. 11.6 billion in net revenue.
- New record for desktop and portable Macs. 4 million. 3 or 4 weeks of inventory. Below target range.
- Mountain Lion, 9th major release of OS X. Brings popular iOS features to OS X.
- Mountain Lion will be in Mac App Store later this summer.
- 7.7 iPods sold. Down. iPod touch still over half. iPod share still over 70%. Still top selling in most countries.
- 4-6 weeks of iPod inventory.
- iTunes all time record. 1.9 billion in revenue. 35% up. Music, video, apps strong.
- 35.1 million iPhones sold. 88% year over year growth. More than twice smartphone market. Very strong growth in all segments. AsiaPac, Japan doubled year over year. China was 5x level year ago quarter. iPhone 4S launch, China telecom. Over 100 countries. 8.6 million in inventory. In target range of 4-6 weeks inventory. $22 billion in revenue. 85% increase.
- iPhone in enterprise. Opportunity to leverage devices to improve efficiencies through in-house iOS apps. Actively deploying in-house apps to their base.
- iPad 11.8 billion. 151% increase.
- New iPad now available in 40 countries. Strong growth. More than doubling in each segment. $6.6 billion in revenue. Up 132%. Below target range for inventory.
- Education interest in Education grows. 2x sold compared to Macs. San Diego school purchased 2K, will purchase 15k more. Hopeful iPad will be popular in school buying quarter.
- Air Force deploying thousands of iPads. Thousands deployed as mobile sales tools
- 365 million cumulative iOS device sales. App Store in 120 countries. 200,000 apps just for iPad. 25 billion apps downloaded in less than 4 years.
- 125 million iCloud customers.
- (Apple Stores still doing well)
- 47.4% gross margin. Lower than expected commodity cost, stronger revenue and product mix including iPhone.
- Cash 110.2 billion at end of March quarter. 12.6 billion up. 74 billion off shore.
- 2.65 per share dividend in Q3. Will provide info at that time.
- Q3 projection of 34 billion in revenue, gross margin 41.5%.
- Extremely pleased with March results, revenue almost doubling. Fastest iPad rollout ever. iPhone 4S now in over 100 countries including China.
Q&A - Q: Explain Q3 predictions?
- PO: iPad and iPhone ramp up was extremely successful. Able to fulfill demand in March rather than June. Unlike last year, they expect decline in revenue. 1) iPhone channel inventory changes, increase by 2.6 million units. Exited in target range. Last year was still increasing channels. That will impact sequential comparison. 2) Fabulous iPhone 4S execution. December backlog led to huge January. China launched in January. 3) New iPad exection was also fabulous. Launched with significant supply. Fastest country rollout ever. Able to satisfy demand faster. Shift of volume into March. Will effect sequential comparison. 4) Decreased entry price of iPad to $399. 5) U.S. dollar strength.
- PO: Most amazing March quarter ever, feel good about business and pipeline.
- Q: Decline in iPad price. What is the right way to read it? Tell you about price point over time?
- PO: Learning about elasticity of demand. Doing well. New iPad is on fire. Selling as fast as they can make them. Education buying season looks terrific.
- Q:
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