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 Roundup: Apple TV
Buyer's Guide: Apple TV (Don't Buy)

Popular Stories

iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple tv 4k new orange

New Apple TV Expected Later This Year With These New Features

Saturday July 12, 2025 3:09 pm PDT by
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Rumors Faster Wi-Fi Support The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
macbook pro blue green

M5 MacBook Pro No Longer Coming in 2025

Thursday July 10, 2025 12:38 pm PDT by
Apple does not plan to refresh any Macs with updated M5 chips in 2025, according to Bloomberg's Mark Gurman. Updated MacBook Air and MacBook Pro models are now planned for the first half of 2026. Gurman previously said that Apple would debut the M5 MacBook Pro models in late 2025, but his newest report suggests that Apple is "considering" pushing them back to 2026. Apple is now said to be...
iphone 16 pro pro max

iPhone 17 Pro Models With BOE Displays Will Be Sold in China Only

Thursday July 10, 2025 11:59 pm PDT by
iPhone 17 Pro and iPhone 17 Pro Max models with displays made by BOE will be sold exclusively in China, according to a new report. Last week, it emerged that Chinese display manufacturer BOE was aggressively ramping up its OLED production capacity for future iPhone models as part of a plan to recapture a major role in Apple's supply chain. Now, tech news aggregator Jukan Choi reports...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
iPhone 17 Air Colors Thumb 2

iPhone 17 and iPhone 17 Air Rumored to Come in These 9 Colors

Friday July 11, 2025 12:30 am PDT by
The iPhone 17 and iPhone 17 Air will be available in a total of nine color options, according to new information coming out of Asia. The iPhone 17 Air's expected color options. According to the leaker going by the account name "yeux1122" on the Korean blog Naver, accessory manufacturers are now producing camera protector rings for the iPhone 17 and iPhone 17 Air in colors to match their...

Top Rated Comments

Big-TDI-Guy Avatar
169 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
169 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
169 months ago
So disappointing that Apple failed so greatly on their earnings last quarter.

</sarcasm> :confused:
Score: 15 Votes (Like | Disagree)
leon44 Avatar
169 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
169 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
169 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)