Apple Financial Results Conference call notes for Q1-2007.

  • Apple shipped 21,066,000 iPods in the quarter, 50% growth YOY
  • Apple shipped 1,606,000 Macs in the quarter, 28% growth YOY
  • International sales accounted for 42 percent of the quarter’s revenue.
  • Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter.
  • Mac products and services represented 43% of total revenue
  • Apple Retails Stores: 170 stores. Retail stores sold 308,000 Macs during quarter
  • 31% tax rate during quarter, expect 32% for remaining quarters of the fiscal year.
  • Looking ahead to the second fiscal quarter of 2007, we expect revenue of $4.8 to $4.9 billion and earnings per diluted share of $.54 to $.56.
  • iPod demand in Q1 was extraordinary; supply and demand in balance.
  • Apple board has confidence in current management in reference to stock options backdating
  • In reference to iPhone Apple wishes to be where the technology is and explains that 3G is not as wide spread as the current 2.5G EDGE networks
  • Apple Macs delivering substantially above overall PC market growth
  • Mac unit growth in Europe was 28%
  • 31% gross margin was well above where Apple had been operating. Do not get used to 18% operating margins. 12% operating margin guidance for Q2
  • In regards to stock split, “nothing to share today”
  • No pause in Mac sales ahead of Leopard shipment
  • Apple has 7500 Mac outlets now worldwide
  • iPod has 40,000 retails outlets worldwide
  • View Apple TV as the “DVD player of the 21st century”
  • iPod Halo exists according to Apple as evidenced by Mac sales outpacing industry
  • iPhone cannibalization of iPod? “Too soon to tell. Hard to predict. Perhaps we’ll have more on this in future quarters.”
  • Apple Mac Pro market met Apple’s internal expectations. Tempered by wait for Adobe CS universal - due second calendar quarter
  • 1.5 million Boot Camp downloads
  • Apple: “Cisco iPhone trademark lawsuit is silly.” US. trademark by Cisco is “tenuous at best.” Several companies use iPhone already.
  • Apple confident that it will prevail with the trademark, due to the fact that the Apple iPhone is a mobile phone not a VoIP phone.
  • In regard to a question about iLife generally being a January release product, Peter Oppenheimer said “stay tuned”
  • Apple has started “Get a Mac” ads in Japan
  • 6,600 Apple Store Retail employees; 21,500 employess for Apple overall
  • Apple plans to open 35-40 new stores in fiscal 2007