Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
MacBook Pro Updates
Apple Posts $818 Million Profit for 3rd Quarter 2007 [Updated]
Apple shipped 1,764,000 Macintosh computers, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac shipments by over 150,000. The Company also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter.
Steve Jobs said "We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever" and expects to sell one million iPhones by the end of the 4th quarter.
Apple's financial results will be webcast live.
Conference Call Notes
- Landmark quarter for Apple
- Highest revenue in June Quarter in history of Apple
- Record breaking Mac sales
- Mac business represents ~60% of Quarterly revenue. 33% Growth year-over-year growth.
- Sales of Mac notebooks grew 42% year-over-year.
- Music Business represents ~40% of Quarterly revenue.
- Other Music revenue grew 33% year over year
- NPD reported iTunes became 3rd largest music retailer in the U.S.
- Apple says it sold 270,000 iPhones in the 1st 30 hours of sales.
- Activation problems initially, but now working smoothy.
- Based on surveys, people love their iPhones. 90% of iPhone owners were Extremely or Very satisfied with their phone. 85% Extremely or Very Likely to recommend the iPhone to others.
- Expect to sell 1 million iPhones by Sept 29th
- 4th Calendar Quarter to sell iPhone in Europe.
- Announcement later this quarter.
- 10 Million iPhones goal in Calendar 2008
- Plan on incorporating new Software and Features into iPhone over time. Will begin to receive payments from AT&T in the future quarters.
- Subscription accounting on iPhone and Apple TV sales.Q&A Highlights
Q: More details on iPhone sales?
A: We've gotten off to a great start. Focus is not on initial sales, but instead a long term business. Our perspective is measured in years, not months. Reward is huge. Apple has the skill that makes us confident to succeed. iPhone in Europe next quarter in a few select countries. It took Apple almost 2 years to sell one million iPods, we expect to sell one million iPhones in the first full quarter.
Q: See any shortages in iPhone components?
A: Almost all AT&T and Apple Retail stores have the iPhone in stock and we are shipping units off of Apple.com in 1-2 days. We've included our expectations of long term supply/demand in our projections.
Q: You mentioned no payment from AT&T this quarter, can you clarify that comment?
A: We can't go beyond it and won't discuss the terms of the agreement. We will recognize revenue eared from AT&T over time.
Q: How to model AT&T revenue share?
A: Can't comment on it.
Q: In the near term, how do you think about the initial wave of iPhone sales.
A: 270,000 in the 30 hours laster quarter. What we've seen so far gives us a lot of confidence we can sell 10 million iPhones in 2008.
Q: In addition to payments from AT&T are you getting any other payments for placement of applications on the iPhone?
A: We don't discuss it.
Q: How's the Best Buy rollout? Did it contribute to Mac sales?
A: Around 50 stores at the beginning last quarter, around 75 at the end. Over 200 by end of this quarter. 300 by end of calendar year.
Q: iPhone price points? Should we assume we'll have a family of Phones?
A: We believe the iPhone offers tremendous value that customers couldn't even imagine before. It's 3 products in one.
Q: Any seasonality in the iPod and Mac?
A: June quarter begins education buying season. June -> September seasonality has been mixed. In terms of the iPod, we've learned that what drives the product is innovative new features and holiday seasonality.
Q: You see any slowdown in sales prior to Leopard?
A: We'll have to see, but last quarter we sold more Macs than ever.
Q: iPod cannibalization from iPhone?
A: Haven't seen any in the June quarter, but will monitor it.
Q: Are there thoughts about addressing corporate email on the iPhone?
A: We think that the iPhone is a breakthrough product for all customers including business customers. With very little help from the IT department, it will work. Have many business customers who are very happy so far.
Q: Store Openings?
A: We expect to open 12 stores in the September Quarter to end the year with 197 stores. We've not set a target for 2008 openings.
Q: Apple TV Units?
A: We don't announce that level of product detail.
Q: Is there any high level commentary with regard to the learning experiences with launching the iPhone?
A: We've only been at this a few weeks. We're very much beginners at this, so every day there's something to learn. We're interested in building the business to the next level.