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Apple Earnings Report Q1 - 2013 on January 23rd, 2013

[11:03 PM] Bryan: Conference call is now over. Stay tuned for detailed coverage on the information revealed in the call.
[11:02 PM] Bryan: That was the last question, such as it was.
[11:02 PM] Bryan: Tim said, essentially, "Whatever, dude."
[11:02 PM] Bryan: Analyst asking why Apple doesn't want to go down-market with the iPhone, i.e. offering cheaper models.
[11:01 PM] Bryan: Peter said ASP for iPad reduced by $101 year-over-year. Should be down in March. This is due to iPad mini (and iPad 2, to a lesser extent).
[10:57 PM] Bryan: Tim said that Apple is adding 36 new carriers to support LTE for iPhone 5 next week. Currently only 24 carriers support it around the world.
[10:55 PM] Bryan: $AAPL down to $461.60, a loss of $52.405 (-10.20%) in after hours.
[10:55 PM] Bryan: Tim also said that history shows that if someone buys an iPad an unspecified percentage will go on to buy other Apple products. He compared it to the iPod halo effect.
[10:54 PM] Bryan: Tim reiterated his belief that tablets will eclipse PCs.
[10:53 PM] Bryan: Tim said that Apple isn't afraid of cannibalizing itself. He said that if Apple doesn't, someone else will. Called it an opportunity.
[10:52 PM] Bryan: Tim said that iPhone 4 and iPad mini will hit supply/demand balance this quarter. He said that iMac will increase, but not hit balance.
[10:52 PM] Bryan: Tim said that iMac and iPad mini is still in short supply.
[10:51 PM] Bryan: Tim said that there were strong sales of both iPad and iPad mini.
[10:50 PM] Bryan: Peter said to expect big increase year over year in iPad sales, but to expect a sequential decline. This is SOP.
[10:50 PM] Bryan: Tim also said that iPad mini should come into supply/demand balance.
[10:49 PM] Bryan: Keith Bachman asked about the upgrade cycle for iPhone 5. Tim said that there was s strong mix of new customers for iPhone 5.
[10:48 PM] Bryan: Gene also asking about forward guidance. Peter didn't really offer much in additional color.
[10:47 PM] Bryan: Said that TV is an area of "intense interest" and there "there is a lot that Apple can contribute to this space." He didn't offer additional details.
[10:46 PM] Bryan: Tim Cook said Apple sold more than 2 million Apple TV units in December quarter. Up 60% year over year.
[10:46 PM] Bryan: Gene Munster asking content and TV.
[10:45 PM] Bryan: Tim said that Apple is making progress in China in opening new points of sale, but that the company still has far to go.
[10:43 PM] Bryan: Tim Cook laughed and said he wanted to answer, but then didn't answer.
[10:43 PM] Bryan: Shannon Cross up next. She wants to know about Apple's refresh plans vis a vis the 80% turnover in September and October of 2012.
[10:42 PM] Bryan: Peter said Apple will spend $10 billion on CapEx in 2013. That includes equipment for the supply chain, data centers, and infrastructure.
[10:41 PM] Bryan: Steven M. is asking about CapEx expenditures.
[10:40 PM] Bryan: Tim talking iPhone mix. ASP for iPhone flat year-over-year. iPhone 5 mix to total iPhone is similar to iPhone 4S to total iPhone sales last year.
[10:39 PM] Bryan: $AAPL is hetting hammered - $463.28, down $50.725 (-9.87%).
[10:38 PM] Bryan: Peter said that iPad mini was in high demand, higher than they could make, echoing Tim.
[10:37 PM] Bryan: Steven Milunovich is asking about iPad and iPhone.
[10:37 PM] Bryan: Apple has sent 4 trillion notifications.
[10:36 PM] Bryan: Tim said pipeline is "chock full" of "incredible stuff." Said Maps has been improved and will continue to improve.
[10:35 PM] Bryan: Ben asking about Maps, services, and the next iOS release.
[10:34 PM] Bryan: Tim said they couldn't make enough iPad minis to beat demand. He's saying that there was some cannibalization of Mac sales to iPad.
[10:34 PM] Bryan: He also said that channel inventory was wonky because of the product transition early in the quarter.
[10:33 PM] Bryan: He emphasized that he believes sales would have been higher if they could have made more iMacs.
[10:32 PM] Bryan: Tim is talking about iMac availability again. "We left the quarter with significant restraints on iMac."
[10:31 PM] Bryan: Tim said he wanted to speak about this.
[10:31 PM] Bryan: Ben Reitzes is up. He's asking about Macs. "Can you tell us what happened there?"
[10:31 PM] Bryan: Tim said that Apple has had reasonable share with its strategy, but that his company will continue to focus on making a great product.
[10:30 PM] Bryan: Tim answered with his line about making stuff people want, not focusing on share.
[10:30 PM] Bryan: Toni asked if holding share in 2013 for iPhone is a goal.
[10:29 PM] Bryan: Peter relied a bit snippily. "I'll go over it again."
[10:29 PM] Bryan: Toni's pressing. This is one of the few times I've respected his question. Apple has sandbagged for years, and he's calling Peter on it.
[10:28 PM] Bryan: Toni Soccanaghi asked about Apple's new guidance. Peter simply stressed that new guidance will be more realistic.
[10:27 PM] Bryan: In other words, he said that the rumors of order cuts were blown up to a big deal when it was not.
[10:27 PM] Bryan: Tim said that we, the press, and analysts should question supply chain rumors. Said that even if it's accurate, what it means is difficult to understand.
[10:26 PM] Bryan: "I don't want to comment on any particular rumor, because I'd spend my life doing that," Tim Cook.
[10:26 PM] Bryan: Tim is following up, talking about rumors of order cuts.
[10:25 PM] Bryan: Tim said that iPhone 5 was constrained early in quarter. Said that as supply increased, sales increased.
[10:24 PM] Bryan: Bill's asking about iPhone 5 demand at end of quarter and going forward.
[10:24 PM] Bryan: Tim said that no one matches Apple's iPhone 5 display. Said it's larger while maintaining ease of use. "We've put a lot of thought into this, and we think we've picked the right one."
[10:23 PM] Bryan: Bill Shope also wants to know about "competitive dynamics" in market. Will Apple offer more screen sizes?
[10:23 PM] Bryan: No changes to announce, but they're always looking at it. Yada yada yada.
[10:22 PM] Bryan: She also asked about Apple's cash. Peter said that Apple continues to look at returning more cash.
[10:22 PM] Bryan: In other words, Tim said, "shut up about this more sizes thing."
[10:22 PM] Bryan: Tim said that Apple is very happy with tis growth. Said that highest growth was in China, and that Apple gained share.
[10:21 PM] Bryan: She wants to know if Apple needs more "screen sizes."
[10:21 PM] Bryan: Katy Huberty from Morgan Stanley up first for questions. She's asking about iPhone 5 trends internationally.
[10:20 PM] Bryan: This is a big deal. Look for more detailed coverage after the conference call.
[10:20 PM] Bryan: Apple will offer reasonable guidance going forward. That guidance will be presented as a range.
[10:19 PM] Bryan: Peter said that guidance in the past has been "conservative," i.e. Apple has been sandbagging for years. No more, he says.
[10:18 PM] Bryan: On to guidance.
[10:18 PM] Bryan: $2.65 per share dividend is in place for this year.
[10:18 PM] Bryan: $137.1 billion in cash! $94 billion off-shore. $23.4 blllion in new cash flow.
[10:17 PM] Bryan: After Hours market still punishing $AAPL - $482.46, down $31.545 (-6.14%).
[10:17 PM] Bryan: 7% year-over-year increase in foot traffic for retail stores.
[10:17 PM] Bryan: $1.6 billion in retail sales in the quarter.
[10:16 PM] Bryan: 11 new Apple Stores during the quarter, including 4 in China. 411 total stores around the world. Some stores have been enlarged.
[10:16 PM] Bryan: 250 million iMessage accounts.
[10:15 PM] Bryan: 2 billion downloads on App Store in the month of December alone.
[10:15 PM] Bryan: $2.1 billion for iTunes sales in the quarter.
[10:14 PM] Bryan: iPod still selling. Amazing. Said that iPod share was over 70% in the December quarter.
[10:14 PM] Bryan: This could be first quarter in many years that Apple loses PC share. Said sales would have been higher without iMac constraints.
[10:13 PM] Bryan: 4.1 million Macs. That's 312,000 Macs per week, down 17% per week year-over-year.
[10:13 PM] Bryan: Peter said Sweden was deploying 10,000 iPads for a government use.
[10:12 PM] Bryan: Said that iPad has been adopted in courts, governments, law enforcement. Also claimed state legislatures were adopting iPad, too.
[10:11 PM] Bryan: Peter said that iPad gained share, too.
[10:10 PM] Bryan: Peter says iPhone rocks where every other phone sucks. That's a paraphrase. He didn't particularly back it up. Said the U.S. government was issuing iPhones by the truckload.
[10:10 PM] Bryan: 4-6 weeks of iPhone channel inventory.
[10:09 PM] Bryan: Peter touted Kantar Worldwide's numbers for the US that showed Apple with 51% share in the U.S. for iPhone.
[10:09 PM] Bryan: 47.8 million iPhone in December quarter. Comparing results on a weekly basis, iPhone sales were up 39%. iPhone sales doubled in China.
[10:08 PM] Bryan: Apple is separating the reporting from iPad, iPhone, Mac, and iPod hardware from services. Accessories will also be separate. This won't effect results, of course.
[10:06 PM] Bryan: This year's $13.1 billion in earnings is higher than last year's $13.1 billion. He didn't give us the next digit, though.
[10:06 PM] Bryan: Sales up $8.2 billion year-over-year, and that's with one less week in the quarter.
[10:05 PM] Bryan: Peter Oppenheimer is moving on to results.
[10:04 PM] Bryan: Apple sold 10 iPhones per second in the December quarter. Zoinks!
[10:04 PM] Bryan: "The most important thing to us is that our customers love our products. Not just buy them, but love them."
[10:04 PM] Bryan: Noted that January 24th is the third anniversary of iPad's announcement.
[10:03 PM] Bryan: Tim said part of his job is to preserve Apple's culture. This is a direct response to some of the nonsense that's been bandied about concerning the company in recent weeks.
[10:02 PM] Bryan: He's making the case for Apple's devotion to detail and quality.
[10:02 PM] Bryan: "No technology company has ever reported this kind of result."
[10:02 PM] Bryan: Tim Cook is on. Called quarter "extraordinary."
[10:01 PM] Bryan: Intro comments from Nancy Paxton.
[10:01 PM] Bryan: Earning report posted. Conference call is beginning
[9:41 AM] Adam: Please join us January 23rd at 5:00 PM (EST) for our live coverage of Apple's Q1 FY13 Earnings results call.
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