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Notes of interest from Apple's Q4 2013 conference call

post #1 of 29
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Apple again beat Wall Street expectations when it posted its fourth-quarter results on Monday, thanks to sales of 33.8 million iPhones during the September frame. Following the company's earnings release, Apple executives took part in a conference call to discuss the quarter, and notes of interest follow.

Execs


Participating in Tuesday's call were Apple Chief Executive Tim Cook, Chief Financial Officer Peter Oppenheimer, and Corporate Comptroller Luca Maestri. Cook started off the call by declaring "Apple's business is stronger than ever."

Highlights


  • Apple earned $171 billion in revenue in its fiscal year 2013
  • Apple completed 15 strategic acquisitions in the last year.
  • On cash returns to investors: Cook said Apple plans to be "thoughtful and deliberate."
  • Cook teased that Apple sees growth opportunities in current markets as well as new ones.
  • iPad reportedly accounted for a whopping 90% of tablet activations last quarter, according to Apple
  • Apple ended the quarter with $148.6 billion in cash, $35.5 billion of it held domestically
  • $2.8B in dividends were paid in the quarter, and 47M shares have been retired through buybacks


Apple's iPhone business



33.8 million iPhones sold in the September quarter - a new record

Of those planning to buy a smartphone in the next few weeks, 63% said they would choose iPhone

Changewave shows a 96% satisfaction rate for iPhone

Over 14,000 employees at Johnson Controls are using iPhones for work.

iPhone users spend 53% more time on their device than other smartphone users

AVIC in China is equipping employees with iPhones

Cook said there is some price elasticity in foreign markets, and he hopes Apple's low-end iPhone 4S will grow sales in those regions

Apple sees the iPhone 4S as its entry offer and a way to enter the ecosystem. Cook said there is "elasticity in that market," and his company plans to "move accordingly."

Apple has been steadily ramping iPhone 5s production since launch

The company plans to reach 100 countries by the end of the calendar year

Apple's iPad business



Sales exceeded Apple's expectations in the quarter, Oppenheimer said

Year over year sales growth in Japan, Russia and the Middle East. Apple also saw strong back-to-school demand in the U.S. and Canada.

iPad reportedly accounted for a whopping 90% of tablet activations, according to Apple

Apple pushed the use of iOS and the iPad in businesses

Sales of iPads to K-12 schools in U.K. have more than doubled year over year

In the U.S., "large iPad initiatives" have been rolled out. Coachella County School District and a South Carolina district were both singled out by Oppenheimer.

iBooks textbooks are now available across the U.S., U.K. and Australia national curricula

Apple isn't focused on unit share, though the company sees the overall tablet market as "huge." Cook is "confident" Apple will grow its sales year over year.

"I think it's going to be an iPad Christmas," Cook said.

Apple has a 94% share of tablets in education, a number Cook said is "unheard of"

iPad mini with Retina display will ship later in November. "It's unclear whether we will have enough for the quarter or not. We know how many we will have, but you really don't know the demand until you start shipping."

Apple's Mac business



Though sales were down 7% during the quarter, the overall PC market was down 10%, suggesting Apple continues to gain share

Oppenheimer touted Apple's recent Mac upgrades, including last week's new MacBook Pros

Making Mavericks and future OS X releases free is "just another reason that everyone should buy a Mac," Cook said

Apple's iTunes and App Store businesses



iTunes software and services reached $4.4 billion in the quarter, a 22% year over year increase.

$13 billion has now been paid to developers, half of that in the last year alone

Apple's retail business and regional sales



Apple retail sales revenue was $4.5 billion in the quarter, up 6 % year over year

The company completed remodelings of two stores, and opened 8 new ones

More stores in the U.S. and overseas will be opened and remodeled in 2014, Oppenheimer said

With an average of 411 stores in the quarter, average revenue was $10.9 million per store.

99 million visitors were hosted in the quarter

For the full year, the greater China region generated over $27 billion

Apple's next (Q1 2014) fiscal quarter



Apple expects revenue to be between $55 billion and $58 billion

Gross margins are expected to be between 36.5 percent and 37.5 percent

Operating expenses are projected to be between $4.4 billion and $4.5 billion

Apple expects the tax rate to be about 26.5 percent for the holiday quarter
post #2 of 29
Not sure I get this part "iPad reportedly accounted for a whopping 90% of tablet activations, according to Apple"

Are there any other Apple tablets besides iPad? Or is it a share of iPad among tablets of all vendors?
post #3 of 29
FTA: Of those planning to buy an iPhone in the next few weeks, 63% said they would choose iPhone

So what are the other 37 percent of folks planning to buy an iPhone going to buy other than an iPhone?
post #4 of 29
CNN (not PED)

"Slumping profit margins continue to take a bite out of Apple.'

What a surprise!
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #5 of 29
"Of those planning to buy an iPhone in the next few weeks, 63% said they would choose iPhone"

...... interesting
post #6 of 29
Imagine if Apple really rolled out a low margin iphone 5c as most non experts demand and directed? The BRICs people prefer brand name and luxury goods rather than junks. That will be a say 20% margin guidance? I will sell Apple right away...Apple do know the market better than most analysts and journalist. With all the new product refreshes, (in tooling, displays, the data centers..) what's the big deal? What you see and hear are all the hot headed opinions. Journalist alway tried to find reasons to support anything and jump to a conclusion.
Edited by water cooler - 10/28/13 at 2:55pm
post #7 of 29
Quote:
Originally Posted by Cecil Helton View Post

FTA: Of those planning to buy an iPhone in the next few weeks, 63% said they would choose iPhone

So what are the other 37 percent of folks planning to buy an iPhone going to buy other than an iPhone?

The survey has a 37.5% margin of error.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #8 of 29
Quote:
Originally Posted by jakeawhite View Post

"Of those planning to buy an iPhone in the next few weeks, 63% said they would choose iPhone"

...... interesting

Classic AppleInsider-ism. They probably meant to type something else.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #9 of 29
Quote:
Originally Posted by digitalclips View Post

CNN (not PED)

"Slumping profit margins continue to take a bite out of Apple.'

What a surprise!

 

 

http://money.cnn.com/2013/10/28/technology/apple-earnings/index.html

 

Yup.

 

They *did* report the *actual* story, but it's BURIED, and plays second fiddle to the sensationalist headline and lead-in that has little to do with the actual story. 

 

It's almost with a sense of palpable reluctance that CNN (and probably others) admit that Apple beat estimates and yet again sold an obscene amount of gear.

post #10 of 29
I was following the call on thestreet.com and they had a poll up asking if you would be buying the new iPad. 77% said yes.
post #11 of 29
Quote:
Originally Posted by Quadra 610 View Post


http://money.cnn.com/2013/10/28/technology/apple-earnings/index.html

Yup.

They *did* report the *actual* story, but it's BURIED, and plays second fiddle to the sensationalist headline and lead-in that has little to do with the actual story. 

It's almost with a sense of palpable reluctance that CNN (and probably others) admit that Apple beat estimates and yet again sold an obscene amount of gear.

Can you imagine the headline if Apple had an iWatch with a 30% return rate by disgusted buyers like Scamsung has? 1oyvey.gif
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #12 of 29

A great quarter but Q1 2014 will be a monster with the newly released iPads, the 5S and the 5C including the added market of China. Biggest problem will be (as always) keeping up with demand. Q2 2014 will be the iWatch and it should keep the momentum going. Then the 4.7" iPhone 6 next September and it will go gangbusters all over again. Overall, 2014 will be a great year for Apple.

Help! I'm trapped in a white dungeon of amazing precision and impeccable tolerances!

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Help! I'm trapped in a white dungeon of amazing precision and impeccable tolerances!

Reply
post #13 of 29
Quote:
Originally Posted by Rogifan View Post

I was following the call on thestreet.com and they had a poll up asking if you would be buying the new iPad. 77% said yes.

News headline for that ... " 33% of people polled said they don't want a new iPad."
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #14 of 29
Quote:
Originally Posted by Suddenly Newton View Post

It doesn't work that way. He's not the Dalai Lama.

And even if he was he wouldn't come back as Steve ... somewhere out there is a little boy with big ideas ...
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #15 of 29
Quote:
Originally Posted by Quadra 610 View Post
 

 

 

http://money.cnn.com/2013/10/28/technology/apple-earnings/index.html

 

Yup.

 

They *did* report the *actual* story, but it's BURIED, and plays second fiddle to the sensationalist headline and lead-in that has little to do with the actual story. 

 

It's almost with a sense of palpable reluctance that CNN (and probably others) admit that Apple beat estimates and yet again sold an obscene amount of gear.

 

"Product salesApple sold 33.8 million iPhones in its fiscal fourth quarter, which ended September 30. Those sales represented a 26% increase over last year, and they were slightly above the 33.4 million Wall Street was expecting."

 

...and...

 

"Overall, Apple's fourth-quarter sales came in at $37.5 billion, topping analysts' forecasts of $37 billion. For the current quarter, Apple expects revenue to come in between $55 billion and $58 billion, slightly higher than analysts' forecasts."
 

Yep. 

 

Leads buried... Check!

 

Massive panic selloff... Check!

 

Idiots still in charge... Check!


Edited by SpamSandwich - 10/28/13 at 3:29pm

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #16 of 29
Quote:
Originally Posted by GadgetCanadaV2 View Post
 

A great quarter but Q1 2014 will be a monster with the newly released iPads, the 5S and the 5C including the added market of China. Biggest problem will be (as always) keeping up with demand. Q2 2014 will be the iWatch and it should keep the momentum going. Then the 4.7" iPhone 6 next September and it will go gangbusters all over again. Overall, 2014 will be a great year for Apple.

 

By "monster" do you mean less profitable than the last two Q1s?  Apple's sales are huge so I guess I could see saying it will be a monster quarter just not as good in terms of net profit as years past.

post #17 of 29
Quote:
Originally Posted by gotApple View Post

I wish Steve would come back

 

Thanks for the shitty, useless, tasteless post. You know what's amazing? That after 3 years of non-stop Apple bashing from you, and not a single positive comment about ANY Apple product, you're still not banned, and allowed to continue to post your transparent shilling and stupidity. You wish Steve would come back? Why? You were posting when he was alive, and not a single one of your posts give him, or his products, any credit at that time. So pathetic that you would spend so much of your time coming here simply to hate, and to lie. Anyone can peruse your posting history to see what a fraud you are, where you somehow champion and fall in love with any product that isn't an Apple product. Some of your other gems for all to see: 

 

Quote:
Gotta love the Windows 8 Pro Surface - it's a fully working computer that can run desktop Windows apps, and best of all, it has a fully working Internet (supports Flash and e.g. Unity3D plugin). My iPad 2 just became an obsolete toy.

 

Shilling for the Surface. 

Quote:

I'll be getting a similarly specced Lenovo with a discrete GPU and will get a 50% "discount" for that instead of going for a MBP…

 

 

Shilling for Lenovo.

 

Quote:

Didn't know about this Kindle Fire HDX before, thanks for the tip! Is has 2x the CPU power these A7 iPads have, and a better resolution than Retina, and a 8MP camera as well. And it's lighter on the wallet than iPad Air / iPad Mini…

Shilling for Amazon

Quote:

LOL @ the crappy Iris and Iris Pro graphics... For 15" MBP this "update" was a step backwards, if you think about the GPU power. Unless you'll buy the grossly overprices top model.   Steve, come back. It's almost Halloween. Rise…

 

 

 

More "Steve come back" garbage. 

 

Quote:

Pretty sad if you need to make news about symmetry in the logic board... Average Joe never sees it. Would be better if iPad ran flash even with a non symmetric mother board…

 

Shilling for Flash. 

Quote:
I'm also totally unimpressed by iPad. Sorry.

 

This was in 2010, after the iPad was unveiled. So why do you "wish" Steve would come back, if you're "totally unimpressed" by his latest product before he died, and one he loved and believed in, to the point of him being convinced is the future of mainstream computing? Stop disingenuously digging up Steve in order to bash Apple, it's disgusting. 

 

Quote:

All the iPad can replace is an iPod Touch.

 

 

Shocker. 

Quote:
Check out this cool video. In short: after Flash Player 10.1 comes out it'll be so much faster than HTML5... http://vimeo.com/10553088 Flash Player 10.1 on Nexus One runs circles over HTML5 Canvas on iPhone 3GS... Sad but true.

 

Shilling for Flash. 

 

Quote:
Quad core CPUs with low MHz? That sucks. Also, Intel 3000 integrated - that sucks. I'll skip this iteration. And ThunderBolt? Any devices out there that support it? Apple just lost the game.

 

Quote:

ove to connect this monitor to my PC as well, not just to my MacBookPro. And no USB 3.0 hub? Have to skip this one as well…

 

 

What has ever "not sucked" for you, when it comes to Apple products?

Quote:

Heh you Apple fanatics are really a breed of your own. :) This reminds me of the days of Amiga vs PC... So, tell me mr. fanboy, what real work can you do with your iPad 1/2/3? Taking notes and flipping photos doesn't count. That Win 8 Pro Surface is really a laptop and a tablet all in one.

More shilling. 

 

The rest of your posts are all the same. You hate everything Apple, yet you choose to relentlessly post on an Apple forum. I can't think of anything more pathetic. Go find another hobby for your own sake, and stop trying to shit up every single thread here with your childish garbage. There's only about 90,291,203,032 non-Apple forums you can post in, that talk about, you know, products you actually want to buy. 


Edited by Slurpy - 10/28/13 at 3:57pm
post #18 of 29
I also found "iTunes software and services reached $4.4 billion in the quarter, a 22% year over year increase." to be quite encouraging.
post #19 of 29
Quote:
Originally Posted by digitalclips View Post

CNN (not PED)

"Slumping profit margins continue to take a bite out of Apple.'

What a surprise!

 

Love how CNN was so desperate to use that pun, so decided to use it no matter what the facts came out to be. Yes, I'm sure Apple is feeling the "bite" after making $38,000,000,000 (yeah, that's alot of zeroes) this quarter, smashing their previous Sept record, as well as that of an company in history for that matter. Yet, the term "slumping" is the one that is best chosen to describe this. 

 

Absolutely disgusting. 

post #20 of 29
Originally Posted by gotApple View Post
I wish Steve would come back

 

He will, if you leave this site. Forever.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #21 of 29

And do note, that unlike another tech company (that is apparently still under the illusion that they matter in consumer tech beyond an office suite and a box to play games on), Apple is making serious coin from all the *right* things vis-a-vis today's market. 

 

Sure, Apple too, can instead choose to sell the tech equivalent of rubber dogshit for sustainable revenue, but it's all about mobile integration, comprehensive app ecosystems, and rich user experiences, and has been for years now. 

post #22 of 29
Here here, well said lets get rid of that negitivity from "Got Apple" he posts on Apple insider.

Originally Posted by Rickers - 2014

Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.  Steve == Apple and Apple == Steve.  

Reply

Originally Posted by Rickers - 2014

Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.  Steve == Apple and Apple == Steve.  

Reply
post #23 of 29
Notice the gutter media/blog douchebags has been hyping Apple ahead of earnings for their investment pals and now is doing the reverse afterwards, this is nothing new , it wouldn't matter what results Apple reported they would find something to criticise. Notice all the day traders are selling to take their profits. this will level off and normal trading wil resume shortly until the next product and or results are announced. Apple is the most manipulated stock in the market. Thats all you need to know here.

Originally Posted by Rickers - 2014

Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.  Steve == Apple and Apple == Steve.  

Reply

Originally Posted by Rickers - 2014

Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.  Steve == Apple and Apple == Steve.  

Reply
post #24 of 29

Dude, add some more Kale to your green smoothie and cut back on the red meat! Maybe go for a walk once in a while! Sheez!

 

 
 

 


Edited by christopher126 - 10/28/13 at 4:53pm
post #25 of 29
There was one part of the call that bugged me. Katy Huberty at Morgan Stanley threw Tim a softball question about 64-bit, M7 and touch id, basically giving him the opportunity to explain why these are great innovations and how customers will benefit from them and Cook didn't knock it out of the park. In fact he didn't answer it at all. Damn I wish Cook was better at these things.
post #26 of 29
Quote:
Originally Posted by Rogifan View Post

There was one part of the call that bugged me. Katy Huberty at Morgan Stanley threw Tim a softball question about 64-bit, M7 and touch id, basically giving him the opportunity to explain why these are great innovations and how customers will benefit from them and Cook didn't knock it out of the park. In fact he didn't answer it at all. Damn I wish Cook was better at these things.

 

 

Is there a need to?

Journalist shouldn’t do homework?

 

Hey i understand. But i also understand him feeling no obligation in reinforcing What other Apple exec. already said.

post #27 of 29
Quote:
Originally Posted by christopher126 View Post

Dude, add some more Kale to your green smoothie and cut back on the red meat! Maybe go for a walk once in a while! Sheez!

 
 






Reminds me of Scotty
Yeah, well, you know, that's just, like, my opinion, man.
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Yeah, well, you know, that's just, like, my opinion, man.
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post #28 of 29
Quote:
Originally Posted by digitalclips View Post

News headline for that ... " 33% of people polled said they don't want a new iPad."

That totals to an interesting percentage 1wink.gif
Yeah, well, you know, that's just, like, my opinion, man.
Reply
Yeah, well, you know, that's just, like, my opinion, man.
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post #29 of 29
Quote:
Originally Posted by Cecil Helton View Post

FTA: Of those planning to buy an iPhone in the next few weeks, 63% said they would choose iPhone

So what are the other 37 percent of folks planning to buy an iPhone going to buy other than an iPhone?

 

 

Quote:
Originally Posted by jakeawhite View Post

"Of those planning to buy an iPhone in the next few weeks, 63% said they would choose iPhone"

...... interesting

 

 

Quote:
Originally Posted by Suddenly Newton View Post


The survey has a 37.5% margin of error.

 

 

Quote:
Originally Posted by Suddenly Newton View Post


Classic AppleInsider-ism. They probably meant to type something else.

 

And the rest plan to buy one at some point after the 4 week window.

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