Apple on 'Fall Transition', Apple TV, Impact of Rumors and More

2q12 revenueApple held its Q3 2012 financial results conference call this evening. We have posted a full transcript of the call.

From the call, Apple discusses their expectations for the next quarter which runs through July, August and September. In particular, Apple CFO Peter Oppenheimer expects gross margins to decline in the next quarter due to a "Fall transition". He was unwilling to provide more details on direct questioning:

A: "Fall transition" that I spoke about is driving most of the decline that we see sequentially in gross margin. Not something that we're going to talk about in any level of detail today. We could not be more confident in our new product pipeline.

Apple uses such terms as "Fall transition" to represent changes to their product lines. Lower expected gross margins could point to new products with lower prices. The obvious speculation would point to the much rumored smaller/cheaper 7.85" iPad. Whatever the "fall transition" is, Apple expects it to take place before the end of September in order for it to impact the next quarter.

Apple was also asked about the impact of rumors and speculation on their sales

Q: Rumor and speculation, how much does it hurt sales in the quarter?

A: There's a lot of speculation out there. It's difficult to sort out but I'm fairly convinced that there's an incredible anticipation out there for future products. As you would expect given what we've been able to deliver in the past. I think it's a reasonable amount.

And later...

Try very hard to keep our product roadmap secret and confidential. We go to extremes to do that. That, however, doesn't stop people from speculating or wondering and they'll never do that. The great thing about this country is that people can say what they think and so-forth. I'm not going to spend any energy trying to change that. I'm glad that people want the next thing. I'm super happy about it. There are obviously quite a few that want what we're doing now as well. I'm not going to put any energy into trying to get people to stop speculating. I don't think it would amount to anything.

Finally, Apple is still optimistic about the Apple TV, and continues to believe in it despite it being a comparably smaller market.

Q: Did you give an Apple TV number and updated thoughts?

A: Sold 1.3 million last quarter, up more than 170% year over year. Brings fiscal year to 4 million units. This is pretty incredible. Still at a level that we would call a "hobby" -- continue to pull the string to see where it takes us. Not one to keep around projects that we don't believe in. Lot of people here that believe in Apple TV. Continue to invest.

Q: Don't do hobbies to be hobbies -- do it to make something bigger?

A: We do it because we think it'll lead us somewhere. We'll see. 4 million isn't a small number and there are a lot of believers in it.

We have a full transcript available from the call.

Related Roundups: Apple TV, tvOS 14
Buyer's Guide: Apple TV (Don't Buy)

Top Rated Comments

Big-TDI-Guy Avatar
112 months ago
Ok - so there's no downvote button (for now) - so I'll say it out loud. (And still be bludgeoned for it)

For the first time in a long time - I'm not remotely excited about what Apple has in store for the remainder of this year. Something isn't there - that once was...

I know, I'm a horrible person. :(
Score: 26 Votes (Like | Disagree)
koruki Avatar
112 months ago
So disappointing that Apple failed so greatly on their earnings last quarter.

I checked the dictionary for the word fail, and making over $8b profit didn't show up :rolleyes:
Score: 24 Votes (Like | Disagree)
flash84x Avatar
112 months ago
So disappointing that Apple failed so greatly on their earnings last quarter.

</sarcasm> :confused:
Score: 15 Votes (Like | Disagree)
leon44 Avatar
112 months ago
"The great thing about this country is that people can say what they think and so-forth."

Is it just me or do Americans think they invented free speech, you can say what you think in the vast majority of countries!
Score: 12 Votes (Like | Disagree)
Stephen123 Avatar
112 months ago
So disappointing that Apple failed so greatly on their earnings last quarter.

Apple, the worlds most valued company, grew 23% over one year, beating their own quarterly predication. That is only disappointing in a VERY specialized sense of the word.
Score: 12 Votes (Like | Disagree)
Dazza7111 Avatar
112 months ago
iLove my ATV

But it could be soooo much better!!! Eg Web browser, more tv channels! And maybe Apps???
Score: 9 Votes (Like | Disagree)

Top Stories

microsoft edge ios android

Bill Gates Says His Preference for Android Over iPhone is Due to Pre-Installed Software

Friday February 26, 2021 3:35 am PST by
Microsoft co-founder Bill Gates this week participated in his first meeting on Clubhouse, the increasingly popular invite-only conversation app, where he fielded a range of questions as part of an ongoing book tour. Gates was interviewed by journalist Andrew Ross Sorkin, and given that the Clubhouse app is currently only available on iOS, naturally one of the questions that came up was...
First Look Big Sur Feature2

Apple Releases macOS Big Sur 11.2.2 to Prevent MacBooks From Being Damaged by Third-Party Non-Compliant Docks

Thursday February 25, 2021 10:07 am PST by
Apple today released macOS Big Sur 11.2.2, the fourth update to the macOS Big Sur operating system that launched in November. macOS Big Sur 11.2.2 comes two weeks after the release of macOS Big Sur 11.2.1, a bug fix update. The new ‌‌‌‌macOS Big Sur‌‌‌ 11.2.2‌ update can be downloaded for free on all eligible Macs using the Software Update section of System Preferences....
flat mbp 14 inch feature yellow

Redesigned 14-Inch MacBook Pro Expected to Feature Brighter Mini-LED Display With Slimmer Bezels and More

Thursday February 25, 2021 7:48 am PST by
Apple plans to unveil new 14-inch and 16-inch MacBook Pro models with Mini-LED-backlit displays in the second half of this year, according to industry sources cited by Taiwanese supply chain publication DigiTimes. The report claims that Radiant Opto-Electronics will be the exclusive supplier of the Mini-LED backlight units, while Quanta Computer is said to be tasked with final assembly of the...
Top Stories 47 Feature copy

Top Stories: MacBook Pro, iMac, and AirPods Rumors, macOS 11.2.2, MagSafe Wallet Revisited

Saturday February 27, 2021 6:00 am PST by
March is right around the corner, and that means our first good opportunity for Apple product launches in 2021 as the company frequently has significant launches in March or April each year. We're hearing rumors about MacBook Pro, iMac, AirPods, and more, although many of these will be coming out at different times over the course of the year. This week also saw a macOS update to address a ...
maxresdefault

HomeKit Essentials Worth Checking Out

Saturday February 27, 2021 7:05 am PST by
HomeKit was slow to take off after its 2014 launch, but now that it's been around for seven years, there are hundreds of HomeKit products available, ranging from doorbells and speakers to TVs, lights, and cameras. In our latest YouTube video, we rounded up some of our favorite HomeKit products that we find most useful. Subscribe to the MacRumors YouTube channel for more videos. HomePod...
apple store macarthur center

Apple Store at MacArthur Center in Virginia Permanently Closing Following Years of Safety Issues at Shopping Mall

Thursday February 25, 2021 4:45 pm PST by
Apple today indicated that its retail store at the MacArthur Center shopping mall in Norfolk, Virginia will be permanently closing after over 14 years of business, although an exact closure date has yet to be announced by the company. Apple has assured that it will be offering all employees at the store other positions within Apple, and said that it looks forward to continuing to serve...
jon prosser imac 2021colors

Prosser: 2021 iMac to Come in Five Colors, Apple Silicon Mac Pro to Resemble 'Stacked' Mac Minis

Wednesday February 24, 2021 7:26 am PST by
Hit-and-miss leaker Jon Prosser has today alleged that the upcoming 2021 iMac models will offer five color options, mirroring the colors of the fourth-generation iPad Air, and revealed a number of additional details about the Mac Pro with Apple Silicon. In a new video on YouTube channel FrontPageTech, Prosser explained that the redesigned iMacs will come featuring options for Silver, Space ...
apple refurbished m1 mac mini

Apple Begins Selling Refurbished M1 Mac Mini

Thursday February 25, 2021 6:42 pm PST by
Apple today began selling certified refurbished Mac mini models with the M1 chip for the first time in the United States and Canada, with prices discounted by approximately 15 percent compared to brand new models as usual. For example, a refurbished Mac mini with the M1 chip, 256GB of SSD storage, and 16GB of unified memory is available for $759, compared to $899 brand new. Other custom...
mac mini developer transition kit photo feature

Apple Requiring Developers to Return DTK Mac Minis by March 31

Friday February 26, 2021 3:57 pm PST by
Apple today sent out emails to developers who are in possession of a Developer Transition Kit, asking them to return the machines by March 31. The Developer Transition Kits are Mac minis with A12Z chips that Apple provided for development purposes ahead of the release of the M1 Macs. Apple in the emails provided developers with shipping instructions, and plans to begin collecting the DTKs...
m1 mac mini

M1 Mac Users Report Excessive SSD Wear

Tuesday February 23, 2021 7:07 am PST by
Over the past week, some M1 Mac users have been reporting alarming SSD health readings, suggesting that these devices are writing extraordinary amounts of data to their drives (via iMore). Across Twitter and the MacRumors forums, users are reporting that M1 Macs are experiencing extremely high drive writes over a short space of time. In what appear to be the most severe cases, M1 Macs are sai...