Apple third-quarter earnings call live blog | CNET

Apple third-quarter earnings call live blog

Join CNET for live coverage of Apple's third fiscal quarter conference call.

  • Josh Lowensohn 7/24/2012 9:12:22 PM
    And iOS 6. Oppenheimer talking about the company's preview at WWDC in June. That includes the news maps app, and Pass Book.
  • Josh Lowensohn 7/24/2012 9:12:31 PM
    "Can't wait to get it into the hands of customers this fall."
  • Josh Lowensohn 7/24/2012 9:12:40 PM
    $4.1B in revenue for Apple's retail stores.
  • Josh Lowensohn 7/24/2012 9:12:53 PM
    791K Macs sold in the stores this quarter.
  • Roger Cheng 7/24/2012 9:13:05 PM
    Half of the Macs sold in Apple stores were to customers new to Apple.
  • Roger Cheng 7/24/2012 9:13:29 PM
    Average revenue per store is $11.1 million, vs. $10.8 million in the year ago quarter.
  • Roger Cheng 7/24/2012 9:13:43 PM
    17,000 visitors per store per week, Oppenheimer says.
  • Josh Lowensohn 7/24/2012 9:14:44 PM
    Cash: $117.2B at the end of the June quarter, compared to $110B at the end of the previous quarter.
  • Josh Lowensohn 7/24/2012 9:15:18 PM
    Oppenheimer noting the dividend, which will be paid out in August. Shareholders are getting $2.65 per share.
  • Roger Cheng 7/24/2012 9:15:29 PM
    September 30, 2012 marks the beginning of its stock buyback plan.
  • Josh Lowensohn 7/24/2012 9:15:49 PM
    Now onto the outlook: Apple expects $34B in revenue. Gross margin 38.5%.
  • Josh Lowensohn 7/24/2012 9:16:03 PM
    OpEx around $3.5 billion
  • Josh Lowensohn 7/24/2012 9:16:25 PM
    And earnings per share of $7.65.
  • Roger Cheng 7/24/2012 9:16:29 PM
    Oppenheimer mentions iPad again...Apple's really proud of that 17 million figure.
  • Josh Lowensohn 7/24/2012 9:16:38 PM
    Oppenheimer wrapping up now.
  • Josh Lowensohn 7/24/2012 9:16:48 PM
    And now we get Q&A from analysts.
  • Josh Lowensohn 7/24/2012 9:17:07 PM
    Q: Katie H. from Morgan Stanley asking about Gross Margin guidance.
  • Josh Lowensohn 7/24/2012 9:17:34 PM
    Q: Can you talk about the dynamics that are pushing gross margins down again in Sept.
  • Josh Lowensohn 7/24/2012 9:18:07 PM
    A: Oppenheimer: We expect most of this decline to be driven by a "fall transition" and weaker U.S. dollar, warranty benefit not repeating, along with the back to school promotion.
  • Josh Lowensohn 7/24/2012 9:18:25 PM
    Q: (follow up) You've seen growth in China, but what about Asia overall?
  • Roger Cheng 7/24/2012 9:18:28 PM
    Q: Talk about what you're seeing in China in regards to overall demand.
  • Josh Lowensohn 7/24/2012 9:19:25 PM
    A (Cook): The difference in the sequential growth was in greater China, which accounts for about 2/3rds of our revenue in that region. It was a 48 percent YoY increase. The $2.2B sequential revenue decline was due to iPhone sales in greater China.
  • Josh Lowensohn 7/24/2012 9:20:28 PM
    Cook effectively saying it was due to channel inventory of the iPhone, and seasonality of those device sales. Now in terms of iPhone sales in general, Cook says they were up over 100 percent year over year.
  • Josh Lowensohn 7/24/2012 9:21:11 PM
    Sales did not benefit from the new iPad in June, because it went on sale there last week (outside the quarter).
  • Josh Lowensohn 7/24/2012 9:21:32 PM
    Cook says the company remains confident in China and local services.
  • Roger Cheng 7/24/2012 9:21:48 PM
    Q: Thoughts on individual segment trends?
  • Roger Cheng 7/24/2012 9:22:20 PM
    We expect a year-over-year increase in iPhone sales for September quarter, as with iPads, Oppenheimer says.
  • Josh Lowensohn 7/24/2012 9:22:40 PM
  • Roger Cheng 7/24/2012 9:22:40 PM
    We expect a sequential increase in Mac sales, Oppenheimer says.
  • Roger Cheng 7/24/2012 9:23:12 PM
    Revenue guidance is up 20% year over year. Not expecting economies in Europe, Brazil, Australia, and Canada to improve over June quarter, Oppenheimer says.
  • Roger Cheng 7/24/2012 9:23:24 PM
    Weekly iPhone sales continue to be impacted by rumors of new products, he says.
  • Roger Cheng 7/24/2012 9:23:42 PM
    We also don't expect to add new countries or carriers in the September quarter, he says.
  • Roger Cheng 7/24/2012 9:24:25 PM
    Current lineup of iPads include $399 iPad 2. That, along with mix will affect ASPs in the September quarter.
  • Roger Cheng 7/24/2012 9:24:49 PM
    Stronger dollar will have an adverse impact in revenue in several countries overseas, he says.
  • Roger Cheng 7/24/2012 9:25:05 PM
    We remain very confident in the business and excited about the launch of iOS in the fall, Oppenheimer says.
  • Roger Cheng 7/24/2012 9:27:03 PM
    The U.S. was very strong, running at 47%, Japan was strong at 45%, greater China was up 66%, with mainland China more than double. Europe was flat, slightly positive year on year, which hampered our total results.
  • Roger Cheng 7/24/2012 9:27:12 PM
    That's according to CEO Tim Cook.
  • Roger Cheng 7/24/2012 9:27:47 PM
    Cook: U.K. was solid at 30% growth, but France, Greece, and Italy were particularly poor, while Germany had single-digit growth. Eastern Europe showed more growth.
  • Roger Cheng 7/24/2012 9:28:12 PM
    Cook: Certainly seeing a slowdown in this area. In the U.S. and China, we haven't seen anything we could classify as an economic issue.
  • Nobody 7/24/2012 9:28:25 PM
    So no t-mobile
  • Josh Lowensohn 7/24/2012 9:28:47 PM
    Q: Barclays asks about the "fall transition." Can you talk a little bit about that? What's the sequential change in margins you're talking about, and how much do you expect to get back in the Dec. quarter?
  • Roger Cheng 7/24/2012 9:29:12 PM
    There's the veiled iPhone 5 question.
  • Josh Lowensohn 7/24/2012 9:29:19 PM
    A: Oppenheimer -- I don't want to talk too much about the fall transition, but it's the thing that's driving the decline. That said, we're confident about our product pipeline (read: next iPhone)
  • Josh Lowensohn 7/24/2012 9:29:42 PM
    Q: (follow up) Do you have any idea with the iPhone, how much rumors and speculations hurt sales?
  • Josh Lowensohn 7/24/2012 9:30:21 PM
    A: Cook: It's difficult to sort out. I am fairly convinced that there's an incredible anticipation out there for a future product. And as you would expect, given what we would be able to deliver in the past's a reasonable amount. In terms of channel inventory, we put our current thinking in the guidance Peter provided you.
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