Apple’s Earnings Call Highlights

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Apple’s quarterly results are out and the company has yet again posted excellent numbers.

During the Q3 2011 financial results conference call, Apple’s COO Tim Cook and CFO Peter Oppenheimer revealed some interesting information.

  • Apple has maintained its position of being the most profitable technology company with profits of more than $7 billion. Growth of 125% Year over Year
  • 222 million iOS devices have been sold till date. Of course how many of them are active is still a question.
  • iPhone and iPad collectively represent two thirds of Apple’s $28 billion revenue.
  • iPad is now a bigger business than Macs for Apple. Revenue from iPad for the June quarter was $6 billion, for the Mac was $5.1 billion.
  • Apple acknowledged that iPads were causing a dent in Mac and PC sales.
  • More iPads sold to the K-12 segment than Macs.
  • Apple sold every iPad they could make.
  • The iPad is available in 64 countries and is being adopted in the enterprise sector. Has seen uses in Hospitals, Sales, Aeroplane cockpits and a lot more places.
  • 20.3 million iPhones sold in the June quarter, the highest for any quarter thanks to the white iPhone and expansion in new countries.
  • The iPhone is available on 228 carriers in 105 countries.
  • Enterprise adoption of the iPhone is going up. 91% of Fortune 500 companies are either testing or deploying the iPhone.
  • iPod Touch holds 70% market share of MP3 players, a market whose future is in jeopardy. 7.5 million iPods were sold with the iPod Touch representing more than 50% of the sales.
  • Total iOS devices sold in last quarter – 33 million.
  • Apple maintained its stance that Apple TV is still a hobby.
  • $1.4 billion revenues from iTunes. 225 million accounts on iTunes with 15 billion songs sold till date.
  • Oppenheimer said that more video content will come to the iTunes store later this quarter.
  • Apple earned a revenue of $3.5 billion from its retails stores which continue to expand all over the world. 73.7 million people visited these stores last quarter.
  • Apple will defer an amount of $22 for each Mac sold, $16 for each iPhone and iPad sold and $11 for each iPod Touch sold. This is to account for feature additions like iCloud.
  • OS X Lion will release later today (It isn’t yet live on the Mac App Store)
Since Apple has $76 billion cash in hand, and its margin on each iOS device is considerably high, the company can easily afford to sell a cheaper entry level iPhone. Tim Cook emphasized on how the Asia Pacific market would play an increasing role in the company’s growth and a cheaper contract-free iPhone would be perfect fit for that market. During the session Oppenheimer slipped in something about a “future product transition“, but refused to go into the details. Although Cook didn’t directly react to Schmidt’s comments, on being asked about its ongoing patent disputes, his response was this:
“We have a very simple view here. That view is we love competition, we think it’s great for us and for everyone, but we want people to invent their own stuff. We’re going to make sure we defend our portfolio appropriately.” 
He did however comment that Android’s daily activation numbers were “tricky” and they might not be accurate. Cook told that Windows lost more users to the iPad than the Mac, which is obviously good news for Apple. He added that the Mac grew ten times more than the estimated PC growth and the MacBook Air and Pro models were very successful. We won’t surprised if next year Apple’s Back to School campaign focuses on the iPad instead of a Mac.
To read the full transcript of the Q&A session head over to MacRumors.

[via TechCrunch]