Bryan, thanks again for allowing me to assist with the call. It's always a pleasure to work with you.
The call has ended. I'll be in the Apple Finance Board forum for post-call discussions.
Robert Paul Leitao
That's it. Thanks to Robert for his outstanding help with our live coverage. We'll be working on additional focused reports at The Mac Observer on highlights from the call.
Analysis: June quarter iPad unit sales will skyrocket both year-over-year and sequentially. I consider the June quarter the iPad blow out quarter and the product will be a major catalyst for overall revenue growth.
In the March quarter revenue rose about 83% but June quarter revenue guidance forecasts a 46.5% rise.
Commentary: Guidance on both revenue and eps for the June quarter is unjustifiably low.
Peter Oppenheimer again quizzed on conservative guidance on revenue and eps for the June quarter.
Analyst asked why Apple produced fewer iPads in Q2 compared to Q1. Tim basically said, "Dude, product transition? WTFZOMGLOL!"
Tim said that Apple is using the Chinese market to learn more about emerging markets, and that the company intends to take what it learns elsewhere. He didn't name names, but one can assume India is one such market.
AAPL now up to $354.32 in AH trading.
Tim Cook: Apple has delivered $2 billion in revenue to iOS developers.
Commentary: This is an oft-mentioned number from Apple management.
Tim effectively dismissed the question. iOS is strongly positioned, and Apple's business model is solid. He also argued that many customers will continue to find value in Apple's whole widget approach.
Commentary: Question about iOS v. Android. In my view the two markets do not wholly overlap. The products address some similar but many different markets.
Analyst is making the stupid comparison of Windows/Mac to Android/iOS.
$5.7 billion in capital expenses in the current fiscal year. Of that amount $700 million tied to retail store expansion.
Tim is confident that Apple can make "a large number" of iPads during this quarter, but he declined to offer specifics, or to say if that "large number" would meet demand.
Commentary: Again, June quarter guidance of $5.03 eps is hard to justify or support.
Peter being questioned about guidance of a 350 basis point drop in margins next quarter.
Apple has outgrown the PC market with the Mac for 20 quarters in a row now. Every time they add another quarter to that figure I am simply stunned. This quarter's growth (up32% comared to a decline of 3.2% for IDC's global estimates) is nuts.
For 20 consecutive quarters Mac units sales have performed better than the overall global PC market.
Mac unit sales up 76% in Asia Pacific (excluding Japan). Japan experienced a 20% rise in Mac unit sales.
First half greater China revenue almost $5 billion.
Tim Cook: Domestic iPhone unit sales rose 155%.
Tim Cook: iPad units heavily backlogged. He is pleased with the production ramp. Global distribution growing and is confident of the company's ability to meet demand.
Tim said "demand for iPad 2 has been staggering."
Tim Cook is clearly reading a statement concerning Japan. Normally he answers questions without statements. This may be, however, simply because there was a lot of information to give.
No cost impact from the Japan tragedy in the March quarter.
iPod unit sales fell 17% to 9.017 million units with an associated drop of 14% in revenue, a bit more of a drop than many expected.
Operating expenses below $2.4 billion. The drop in operating expenses relative to revenue is one of the great untold stories of the rise in eps.
International stores beat U.S. stores in average revenue per store. That's something.
Mac laptop unit sales were up 53% while desktop unit sales tumbled 12%.
71 million visitors in Apple's retail Apple Stores! That's up from 43 million one year ago.
Apple is sticking with the 350,000 number for total App Store apps.
iPad sell through higher that reported sales. Obviously constrained supply contributed to the unit sales of just under 4.7 million iPad units.
189 total iOS devices have been sold. That counts iPod touch, of course.
iPad in 59 countries by end of quarter. iPad channel inventory declined by 400,000 units. Every iPad made was sold. In other words, Apple can't meet demand.
Increase in iPhone channel inventory to 4 to 6 weeks based on higher unit sales contributed to the 113% rise in unit sales.
5.2 million iPhones in the channel, up 1.17 million over the last quarter. Peter said this was to handle added carriers.
AAPL holding above $350 per share in AH trading.
iBooks includes 2500 publishers in more than 100 categories.
Retail store sales rose 90% in the quarter with an increase of 32% in Mac unit sales.
Lion is on schedule to ship this summer.
We're currently getting the basic rundown on the numbers released in the quarter earnings announcement.
Mac sales up 76% in Asia Pacific (excluding Japan).
The call has begun. Peter Oppenheimer is reviewing results.
Commentary: Guidance of $5.03 for the June quarter is pure fiction.
We're up to $352 in AH trading. The Street likes the numbers.
iPhone unit sales leaped 113% to 18.65 million units.
Mac unit sales rose 27.8% in a challenging quarter for global PC shipments.
Revenue rose 83% in the quarter and eps jumped about 92.2%.
Amazing! Revenue of $24.67 billion and eps of $6.40 per share.
The Street is expecting about $23.34 billion in revenue and eps of $5.36 per share.
In early after hours trading AAPL is up $1.69 at $344.10.
The market is now closed. Apple finished the day at $342.41, up $4.55 or 1.35% ahead of earnings.
Check back here at 5:00 PM (EDT) for our live coverage of Apple's 2011 Second Quarter Results Conference Call
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