World of Apple
This is a static archive of World of Apple, published by Alex Brooks between 2005 and 2015. Nothing here is live or updated since original publication.

Notes of Interest from Fiscal Q309 Earnings Call

Following the release of Apple's third fiscal quarter earlier today the company held a conference call for media and analysts. Below is a list of notes from the conference call.

  • 4% year-over-year Mac unit growth (4% quarterly decrease)
  • Notebooks make up two thirds of all Mac sales
  • iPod sales down 4% year-over-year, channel inventory reduced by 400,000 units
  • Saw decline in sales of iPod classic
  • 50% of recent iPod purchasers are buying their first iPod, including in traditional strong iPod countries
  • iPod touch sales grew 134% year-over-year
  • Unable to keep up with iPhone 3GS demand
  • Last week Apple saw the 8 billionth song puchased and downloaded from iTunes
  • Around 50% of Mac sales still to switchers
  • Retail stores saw 22% increase in visitors year-over-year
  • Stock of low-end MacBook models constrained
  • K12 sales weak, expected to be down to low budgets
  • $99 iPhone 3G saw sales increase significantly
  • iPod touch expected to grow significantly in Q4
  • Component pricing rising in many areas but Apple intends to be competitive
  • 1.83 million iPhone units in inventory
  • Apple remains a debt-free company
  • $2.3 billion in cash flow in Q3
  • 258 Apple Stores now open; average of 254 stores open during the quarter, $5.9 million per store
  • iPhone 3GS currently in 18 countries
  • Apple's goal is to build the best computers in the world
  • Apple has pre-paid $500 million to Toshiba to secure NAND flash supplies
  • In last quarter Apple shipped a new version of the most advanced mobile operating system (iPhone OS) with an install base of 45 million
  • Goal is not to build the most computers but the best computers
  • Unable to work out how to build a computer for the netbook market
  • Many cheap netbooks are slow, small displays, cramped keyboards and Apple thinks people won't be happy with such products
  • Apple want to build product they're proud of
  • iPhone in China continues to be a priority project and wishes to be in the country within a year