Below are notes from today's Live Conference Call discussing the Q3 2006 financial results. (In reverse chronological - brought to you by MDN)
- End of conference call.
- Once again: Apple is very confident in and excited about the products in the pipeline.
- Music phones aren't ready to compete with iPod now, but that is likely to change in the future. Apple is "not sitting around doing nothing."
- Apple is very confident in their ability to compete and excited with what's in the product pipeline.
- Apple hopes that governments will be hands-off and let the market decide on music players and online services.
- Apple has seen no impact from Sony products on iPod that they can comment on.
- Apple will not comment on iPod shipments on a geographic basis.
- It takes longer to deploy a new product (MacBook for example) in Europe than in USA.
- Schiller is interim Japan marketing chief.
- Is Japan performing up to expectations? Apple looks to improve in Japan. Japan marketing team will report to Phil Schiller.
- Will there be any surprises at WWDC? Apple says you'll have to wait and see.
- Has action in France posed any threat to iTMS? Apple thinks such actions will result in "state-sponsored piracy."
- Boot Camp makes the Mac "even more appealing" for them to switch.
- Boot Camp downloads are "significant."
- Apple broke 50% iPod share in Japan.
- Apple saw iPod share gains in several countries in Europe.
- Apple does not break out individual products for competitive reasons.
- Apple does not disclose information about the size of the "Pro" market.
- Mac OS X Tiger sales were "good."
- Apple believes that Mac OS X is the best operating system and a reason why they're gaining share.
- Best Buy pilot program in a "few" of their stores underway for "about two months" with Apple employees in the stores. Pilot program still be evaluated.
- Mac with free iPod promo not significant to iPod sales for the quarter.
- Apple very happy with Intel processors.
- MacBook supply vs. demand looks balanced for Q4.
- Apple will continue to be "aggressive" in Mac and iPod pricing.
- iPod gross margin up sequentially in the quarter due to favorable commodity market. Same for Macintosh.
- Approx. 7,000 Macintosh reseller distribution points worldwide.
- Approx. 40,000 iPod reseller distribution points worldwide.
- Total revenue from stores up 29%.
- Apple looks forward to showing Mac OS X Leopard at next month's WWDC.
- Apple does not discuss unreleased products.
- Apple Computer shares up over 8.0% to $58.44 in after hours trading on heavy volume of 8.23 million shares.
- Macs in retail were up 40% year-over-year. Strong MacBook Pro and MacBook sales.
- Education: College Students Buy a Mac & get a free iPod nano promo doing very well.
- Pro customers are waiting for pro apps that are Universal and for an Intel-powered desktop "Pro Mac."
- Very robust consumer and higher education demand.
- DRAM market is "relatively balanced" market.
- NAND flash, flat panel displays, hard drives are favorable.
- Apple going into first full quarter of MacBook availability.
- Apple expects favorable commodity market to continue.
- Apple extremely excited about future iPod products in pipeline.
- Apple very confident of products in pipeline.
- Apple pleased with Intel transition.
- Apple expects GAAP earnings per diluted share of about $.46 to $.48, including an estimated $.03 per share expense impact from non-cash stock-based compensation, translating to non-GAAP EPS of about $.49 to $.51.
- Apple expects revenue of about $4.5 to $4.6 billion for Q4 2006.
- Apple education sales highest in a decade.
- 154 Apple retails Stores now open with 14 opened during quarter.
- 50% of Mac buyers at Apple Retail Stores are new to Mac.
- A total of 17 million customers visited stores during quarter.
- $715 million revenue from Apple Retail Stores.
- iTunes Store has 85% market share according to Nielsen/Soundscan.
- Apple feels Mac ad campaign is working.
- iPod continued to earn a US market share of over 75 percent.
- Intel-powerd Pro Mac and Xserve due by end of 2006.
- International sales accounted for 39 percent of the quarter's revenue.
- Gross margin was 30.3 percent, up from 29.7 percent in the year-ago quarter.
- Apple shipped 1,327,000 Macintosh computers and 8,111,000 iPods during the quarter, representing 12 percent growth in Macs and 32 percent growth in iPods over the year-ago quarter.
- The Company posted revenue of $4.37 billion and a net quarterly profit of $472 million, or $.54 per diluted share.
- Second highest earnings and revenue in Apple's history.
- Apple CFO Peter Oppenheimer and Apple COO Tim Cook are present for the call.
- Apple Computer shares have surged 7.7% to $58.25 in after hours trading on heavy volume.
- Awaiting beginning of conference call.