Notes of interest from Apple's Q3 2015 conference call

Posted:
in AAPL Investors edited July 2015
Record setting sales of the iPhone pushed Apple to its best June quarter ever, with profit of $10.7 billion. Following the announcement, executives from the company participated in a conference call with analysts and the media, and notes of inventory follow.




Participating in Monday's call were Apple Chief Executive Tim Cook, and Chief Financial Officer Luca Maestri.

Highlights

  • The Mac continues to grow in the face of declining PC sales, up 9 percent in the June quarter
  • Unsurprisingly, Apple did not announce any specific sales figures for its newly released Apple Watch
  • Cook revealed that Apple Watch has outpaced the launches of iPhone and iPad
  • The iPhone attracted more Android switchers last quarter than Apple has ever seen
  • iPhone average selling was $660, an increase of $99 year over year
  • Apple ended the quarter with $220 billion in cash, $190 billion of it held offshore

Apple's iPhone business

47.5 million iPhones in the quarter, representing 37 percent year over year growth.

iPhone sales more than doubled in Germany, Korea and Vietnam.

Apple reduced inventory across its product lines by over 1 million units.

Revenue exceeded the high end of guidance by $1.6 billion

iPhone revenue up 59 percent, sales grew in both developed and emerging markets.

Highest switcher rate from Android ever in the quarter.

Apple Watch

Apple Watch is available in 19 countries now. Three more will be added at the end of the month.

Apple's own research found that 94 percent of Apple Watch customers wear the device regularly.

Apple Pay

More than 700 universities are set to accept Apple Pay when school starts this fall.

Cook also touted support from Square, with a new reader set to launch this fall that will let local merchants accept Apple Pay.

Apple's Mac business

4.8 million Macs sold last quarter. Company continues to gain market share, based on IDC's latest estimates.

Mac growth was driven by portables, and Maestri said Apple is "delighted" with customer response to the new MacBook.

Continued to defy industry trends by growing once again, 9 percent.

Cook said there has been great response to the new 12-inch MacBook.

Apple's iPad business

iPad sales were 10.9 million for the quarter a decline of 18 percent from a year ago.

Maestri touted that Apple continues to have extremely high customer satisfaction with the iPad.

He also noted that Apple doesn't compete in the low end of the market, but that the company is "extremely successful" in the markets where it does compete.

Maestri said Apple is excited about big things coming to the iPad this fall with iOS 9, including Slide Over, split-screen multi-tasking, and picture in picture.

United is equipping its staff with both iPhones and iPads. AirCanada also recently signed on as a customer.

IBM released 13 new MobileFirst apps in the June quarter, including apps in retail, banking, and healthcare.

There are now 35 apps in IBM's MobileFirst catalog. Apple expects more than 100 apps to be available by the end of 2015.

Apple's services businesses

Set a new all-time record for services revenue, particularly from the App Store.

App Store revenue more than doubled in China year over year.

Other products

Total sales of other products were up 49 percent year over year, and Apple Watch accounted for that growth, offsetting any losses for the iPod lineup.

Maestri reiterated that Apple has no plans to announce specific sales figures for the Apple Watch.

Apple's international businesses

China posted growth of 112 percent. Revenue was over $13 billion.

Emerging markets overall grew 79 percent to almost $18 billion.

Apple's retail business

Apple opened three stores last quarter, bringing it to a global count of 456.

Apple is on track to have 40 stores open in Greater China by the middle of 2016.

Comments

  • Reply 1 of 12
    Doomed. Sell sell sell!
  • Reply 2 of 12
    Wow! Not a soft spot anywhere in the report!
  • Reply 3 of 12
    future manfuture man Posts: 100member
    Yet Apple like Microsoft gets wacked in the Wall Street speculators frenzy, yet firms like Google and Amazon go flying up into the stratosphere! I simply do not understand this!
  • Reply 4 of 12
    razorpitrazorpit Posts: 912member
    future man wrote: »
    Yet Apple like Microsoft gets wacked in the Wall Street speculators frenzy, yet firms like Google and Amazon go flying up into the stratosphere! I simply do not understand this!

    We aren't meant to. This use to bug me too until I finally told myself just keep buying the stock and when the day comes that the market wakes up and realizes how undervalued it is I'll be that much better off. ;-)
  • Reply 5 of 12
    peteopeteo Posts: 348member
    No watch sales numbers but Ipad sold 2m in the first 60 days so it sold more of than 2m probably 2.5. Which I think is great since after the launch you couldn't really buy it until mid June. Allot of people want to try it on first and buy it in store.
  • Reply 6 of 12
    Tim said near the end of the call that more Apple Watches were sold in June, not what has been broadly reported. Interesting.
  • Reply 7 of 12
    fallenjtfallenjt Posts: 3,971member

    Stocks drop $10 already to $120 after hour trading. Can't sell shi.t but keep it for long term investment. 

    By the way, I predicted 48 mil iPhone sold this quarter and it's close...47.5 mil.

  • Reply 8 of 12
    retrogustoretrogusto Posts: 704member

    I think the cash position is $202.8 billion, not $220 billion.

  • Reply 9 of 12
    empiresempires Posts: 20member
    All those new stores but never one in Tasmania.... Thats because Tasmania only uses Microsoft..... Its an acceptable cost of doing business !
  • Reply 10 of 12
    badmonkbadmonk Posts: 754member
    And EPS up 44%, a good quarter...we need to hold tight brothers.
  • Reply 11 of 12
    Quote:

    Originally Posted by Empires View Post



    All those new stores but never one in Tasmania.... Thats because Tasmania only uses Microsoft..... Its an acceptable cost of doing business !

    Why, those little devils!

  • Reply 12 of 12
    kemlinkemlin Posts: 1member



    Wall St. is out of control on so many issues, and what you mention here is a prime example.

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