That's a wrap. The Mac Observer is working on finding the most important stories to come out of the conference call, so stay tuned for more content.
Peter Oppenheimer first said there's lots of great stuff on iTunes, but he added that there was more great stuff coming.
Brian asked whether Apple is going to add to its movie titles on iTunes.
Tim Cook said that people like t consume all kinds of content.
Brian Marshall is asking about media consumption on the iPad.
Tim also said that it's up to Apple to convince people to spend more for a quality product. He said that Apple has been good at doing so.
"We will only make products that we're proud of." Tim said that if they can make a great product that costs less, they'll merrily do so.
It's a really good question. Tim Cook said that gaining share is important to Apple.
Analyst is asking whether gaining share in smartphone is important to Apple.
But he said that they feel good about what they're doing in China. In other words, he didn't directly answer the question.
Tim said that he won't said Apple has figured out how to play in China perfectly, because Apple is still learning more all the time.
Tim Cook said that pre-paid phones are key in China and other emerging markets.
New analyst asking about China iPhones sales and China Mobile having a bunch of unlocked phones on its network.
Peter Oppenheimer gave a non-answer to this. Said that Apple had a lot of skills.
Analyst asking if Apple felt it was ahead of competing cloud initiatives.
Also said that last quarter Apple sold more iPads than Macs to K-12! That's unbelievable considering that iPad is one year old!
Tim didn't want to say a whole lot about its enterprise efforts.
Tim Cook said that Apple acts as a backup for a third party enterprise sales company, and that it backs up the carriers, too. Some sales are direct.
Same analyst asked if Apple was doing anything different with its Enterprise sales efforts.
Tim said that their iPad demand is a good problem to have. Said that some countries were in Supply/Demand balance. Didn't want to say much more.
New analyst asking about iPad production. What kind of issues are involved with ramping up productions?
But he followed that with the fact that Apple was pleased that people bought iPads (and Macs), rather than Windows PCs.
Tim Cook said there was some cannibalization of new Macs by iPad. That's significant, because it's the first time Apple has said that was even possible, let alone something that has actually happened.
New analyst asked why Mac growth was limited to 14%, which is lower than past year-over-year growth rates for Mac.
Audio keeps cutting out, FYI.
He just got told "No. Our produt rocks and we're growing hand over fist," and that's what he asks?
Mr. Abramsky returned with (paraphrasing), So are you going to have to start competing on price in response to these cheap Android devices?
Tim Cook said, "I think we can compete with anyone."
Tim Cook (unsurprisingly) said that iPhone rocks and is the best device out there. He also pointed out that Apple is growing in emerging markets.
Mr. Abramsky does not get Apple, for those keeping score at home. He asked how Apple was going to compete with cheap Android devices.
Mike Abramsky from RBC is asking about whether Apple can sustain its current astronomical growth.
And that he didn't feel they were over reliant on any one company (i.e. Hon Hai Precision/Foxconn).
He added that he was happy with what they were doing.
He basically implied that he and his team were able to do things with its supplier chain that competitors can't.
He said he didn't want to comment on too much about suppliers "because this is part of the magic."
He specifically said that it wasn't something he worried about.
Starting with retail points, Tim said that he thinks the channel is very well diversified. He noted that there are still counties where the channel is being built, but that he's happy with the process so far.
New analyst asking whether Apple needs to diversify its manufacturing base, or increase its retail points.
He said that he didn't want anyone to mistake it for another leg in Apple's business (he didn't specify Microsoft, who had done just that last week).
Moving on to Apple TV, "Appe TV continues to do well, but I don't want to mislead here. We still refer to it as a hobby."
He said that competing tablets aren't getting any traction. All of this is sounding somewhat defensive, and does not address the direct question about whether Android is growing faster than iOS.
He then talked about being able to sell every iPad they made, and said that Enterprise use is growing, and the App Store is awesome, etc.
Tim Cook argues that iOS device sales are more transparent than Google's activations.
New analyst asking about iOS vs. Android growth.
Tim also said that he thought this was terrific for Apple because Apple historically hasn't had a big presence in those markets.
Tim Cook said that much of the sequential growth for iPhone was due to emerging markets, including China, Middle East.
Richard Gartner is asking about iPhone sales.
Mr. Cook also said that Apple would continue to defend its IP.
Analyst asked about patent suits. Tim Cook said that Apple loves competition, "but we want people to invent their own stuff."
Peter Oppenheimer said that some of this was due to some support costs and settlements that weren't huge, but were a part of Q3's results.
New analyst asking about a "one time benefit" that Tim Cook mentioned for margins during the June quarter.
Tim Cook said that FLASH and Mac RAM may be higher during the September quarter.
Peter had guided for 38% for Q4. "We expect 23 of this decline to be due to a different product mix." He also said education promotions would hit margins.
New analyst asking about gross margins.
$8.8 billion in greater China sales year-to-date. Tim Cook said there was a 6x year-over-year increase there this quarter.
Audio back. Tim Cook speaking.
And that's when our audio chopped out, in three different locations throughout the U.S.
Moving on to analyst questions, the first analyst asked about Peter's guidance for the 4th quarter, which is for $25 billion in revenue and $5.5 EPS.
iPhone/iPad will defer $16 and $11 for iPod touch will be deferred over two years. This is all related to iCloud and future updates.
apple is going to begin deferring sales of OS X Lion and iLife over three years. Apple is also going to begin deferring $22 per new Mac sold over three sold.
$76.2 billion in cash on hand.
Gross margins due to higher mix of iPhones, lower commodity costs, and the ability to leverage the company's cash hoard.
More than 73 million visitors to Apple's stores.
Apple stores sold 768,000 Macs. Apple still says half of them are new to Mac. 4 new stores during the quarter. $10.8 million per store opened.
85% of Fortune 500 companies are testing or using iPad. 47% of Global 500. That's amazing.
$6 billion in recognized iPad revenue.
"We sold every iPad we could make."
57% of Global 500 companies are testing or deploying iPhone.
"iPhone continues to be adopted as a standard in Enterprise," Peter said.
iPhone quadrupled in Asia Pacific during the quarter.
iTunes revenue up 32% year-over-year.
7.5 million iPods. This is down from last year (9.4 million), but in line with Apple's expectations. iPod is still crushing this declining market.
Both desktop and portable Mac sales did well. Laptops were cited for Asia Pacific.
Those 3.95 million Macs is, of course, a new quarter. Mac sales were "particularly strong" in Asia Pacific.
Peter Oppenheimer is running over the numbers.
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