Apple second quarter earnings call w/analysts | CNET

Apple second quarter earnings call w/analysts

Apple discusses the results of its second fiscal quarter with analysts.

  • Josh Lowensohn 4/24/2012 7:41:41 PM
    Hey everyone, the call is going on right now. Apple is doing a Webcast of it here.
  • Roger Cheng 4/24/2012 9:48:28 PM
    Cook: I've always hated litigation, and I continue to hate it. We just want people to invent their own tech.
  • Roger Cheng 4/24/2012 9:48:59 PM
    Cook: "I would highly prefer to settle than to battle. But it's important that Apple not become the developer for the world. We need people to invent their own stuff."
  • Josh Lowensohn 4/24/2012 9:49:19 PM
    Q: What are the average number of devices iCloud users have?
  • Josh Lowensohn 4/24/2012 9:49:52 PM
    Oppenheimer: We have the data you're asking for, but we don't want to help our competitors. The feedback we're getting from our customers has been great.
  • Josh Lowensohn 4/24/2012 9:50:15 PM
    (That was average number of devices per iCloud users)
  • Roger Cheng 4/24/2012 9:50:56 PM
    Oppenheimer on higher R&D: We're investing in engineering. Putting money into hardware and software team. "We have some fabulous products in the pipeline. We're confident in the return we're going to get on them."
  • Josh Lowensohn 4/24/2012 9:51:06 PM
    e.g. you say you have 125M iCloud users now, but how much of the 365M iOS devices are plugged into it?
  • Josh Lowensohn 4/24/2012 9:51:23 PM
    Q: You mentioned China has the 4S. What about China Telecom specifically, when did that launch?
  • Roger Cheng 4/24/2012 9:51:32 PM
    Cook: We launched with China Telecom in March.
  • Josh Lowensohn 4/24/2012 9:52:23 PM
    Q: On the OpEx side, what are your thoughts going forward and longer term. And Tim, can you take us through the components and if pricing is better or worse than expected?
  • Josh Lowensohn 4/24/2012 9:53:10 PM
    Oppenheimer: We are investing in R&D to make the most innovative products, and we're spending on marketing and opening our own retail stores. We're also investing in infrastructure along with stock-based comps for employees. We're thinking about the long term
  • Roger Cheng 4/24/2012 9:53:10 PM
    Beyond R&D and products, we're spending on marketing, advertising, stores, indirect channels, and infrastructure to support growth, Oppenheimer said.
  • Josh Lowensohn 4/24/2012 9:53:57 PM
    Cook: Component costs were better than we expected, and that's part of our guidance. In terms of the June quarter, what we factored in. NAND and mobile DRAM supply continue to exceed demand.
  • Josh Lowensohn 4/24/2012 9:55:34 PM
    And another question about gross margin decline. Oppenheimer re-iterates some previous statements. Follow-up about resources Apple's dedicating into the enterprise market.
  • Josh Lowensohn 4/24/2012 9:56:07 PM
    Cook: Originally it was about working with Fortune and Global 500 to get iPad certified. 94% of Fortune 500 are testing or deploying, and 75% of Global 500 are testing or deploying.
  • Roger Cheng 4/24/2012 9:56:43 PM
    Wait, so enterprises aren't using the BlackBerry Playbook?
  • Josh Lowensohn 4/24/2012 9:56:47 PM
    Cook: We're moving our focus away from this and focusing on penetration in these accounts. The incredible thing is that these span in a bunch of different verticals. Government, education, etc.
  • thecoolbro 4/24/2012 9:56:59 PM
    What's going on with WWDC 2012? Any word?
  • Josh Lowensohn 4/24/2012 9:57:16 PM
    @thecoolbro Dunno yet, it's typically announced during April. Perhaps something later this week?
  • Josh Lowensohn 4/24/2012 9:57:57 PM
    Q: Taking the revenue guidance and gross margin, you seem to expect iPhone sales down 10M quarter on quarter. Are you just being conservative, or is that environmental?
  • Roger Cheng 4/24/2012 9:58:47 PM
    Oppenheimer: We're incredibly confident in our business and our strategy. We do expect a sequential decline in iPhone sales driven by the fact that we built up inventory in the March quarter.
  • Josh Lowensohn 4/24/2012 9:59:22 PM
    Q: The iPad is constrained in a number of geographies. When do you think you'll meet the demand?
  • Roger Cheng 4/24/2012 9:59:52 PM
    Cook: We will be able to supply a significant number of iPads during the quarter. I feel very confident about that. I feel better with improving supply.
  • Josh Lowensohn 4/24/2012 10:00:11 PM
    And that's all folks. The call is wrapping up.
  • Josh Lowensohn 4/24/2012 10:00:35 PM
    Thanks for joining us everyone.
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