Following the release of Apples fiscal second quarter 2009 financial results the company held a conference call to answer questions from industry analysts and members of the media. Present during the call were CFO Peter Oppenheimer, COO Tim Cook and treasurer Gary Whistler.

  • Apple began and ended the quarter with between 3-4 weeks of inventory.
  • Quarter was a tough comparison year over year because of 51% y/y growth during last year’s Q1 because of MacBook Air launch. Positive about Mac sales.
  • Over 70% market share in MP3 players says NPD.
  • Very excited about iPhone OS 3.0 this coming Summer.
  • All iPhones sold on or after March 17th until iPhone 3.0 is released this summer will be recognised over 24 months.
  • $1.47 billion in revenue from retail stores, 438,000 Macs sold through stores with “about half” new to Mac.
  • Opened one store during the quarter taking the total to 252.
  • Retail customers increased 33.7 in the year ago quarter to 39 million.
  • Avg revenue store $5.9 million compared to $7.1 million year ago quarter.
  • Cash in back is $28.9 billion at the end of March quarter.
  • Apple is very excited about their product pipeline
  • International sales accounted for 46 percent of the quarter’s revenue
  • Company paid about $1.3 billion in taxes in the March quarter
  • Tim Cook on netbooks: “For us, it’s about doing great products. When look at netbook, cramped keyboard, terrible software, junky hardware, very small screens, just not a consumer experience. Not something that we would put the Mac brand on, quite frankly. It’s not a space, as it exists today, that we’re interested in or that customers will be interested in long term. But do look at the space and see how customers respond to it. People who want a small computer that does browsing and email might want to buy an iPod touch or an iPhone.”
  • Apple has interesting ideas in the netbook space.
  • Hours away from sale of billionth app on App Store.
  • Platform of iPhone and iPod touch is at 37 million units.
  • Cook: Apple views AT&T as a very good partner, very happy with relationship and do not have plans to change it.
  • Verizon is CDMA. GSM works for the world. That’s why AT&T works better for Apple right now.
  • iPhone in Brazil, India and Russia but not China. Apple “working on it”.
  • Peter Oppenheimer: “We look forward to Steve Jobs returning at the end of June.”
  • Apple is very focused on the iPhone product plans.
  • Apple considers Wal-Mart a key partner for sales of both iPhone and iPod.
  • iPhone 1.83 million units in inventory at end of quarter.
  • 21 million iPhones sold to date.
  • On Palm Pre, “It’s difficult to comment of products that aren’t shipping.”
  • No update on new campus construction, Cook: “We’re very busy on constructing new products.”
  • Sakes of iLife and iWork exceeded expectations.
  • Cook: “We think that Apple’s innovation in iPhone is leading industry by years. We think competition is great – as long as companies invent their own stuff.”
  • Conference call ended.