Apple today announced their third quarter 2008 financial results posting revenue of $7.46 billion and net quarterly profit of $1.07 billion (or $1.19 per diluted share).

Apple also held a conference call covering the details of the quarter as well as answering questions from analysts.

Notes from Conference Call

  • Highest June quarter earnings in Apple’s history
  • Highest quarterly Mac shipments in Apple’s history
  • 38% growth in revenue year-over-year
  • 11 million iPods sold, up 12% year-over-year
  • iPhone 3G off to great start, 1 millionth iPhone sold in just 3 days, available in 22 countries
  • Over 900 applications on App Store, 20% free, 90% under $10. Over 25 million apps downloaded so far
  • iTunes now offers 8 million songs, 20,000 TV shows, and 2,200 movies, with 450 of those movies offered in HD
  • 476,000 Macs sold via retail stores, over half sold to customers new to Mac
  • 216 retails stores around the world at the end of quarter, stores coming to Switzerland and Germany in coming months
  • Expect to sell more iPhones in Q408 than any other quarter
  • Gross Margin expected to be down to 31% in September quarter, in part because of new product introduction, no further details available

Question and Answer Session Highlights

  • Beijing Apple store doing very well already
  • 170 Best Buy stores added in quarter. Total of 570 currently, 600 by the end of the Summer
  • Steve Jobs has no plans to leave Apple and his health is a private matter
  • Apple continues to invest in Apple TV, even though it remains a “hobby”
  • iPhone 3G sold out due to overwhelming demand. Pleased with production ramp, trying to catch the demand by shipping units as fast as they can
  • iPhone 3G launching in additional 20 countries on August 22
  • Reiterated that Apple will introduce state of the art new product at prices their competitors can’t match
  • App store not a huge revenue generator, instead makes the iPhone and iPod touch more attractive