Apple Live Blog: Q3 Earnings Conference Call
Apple Inc. (NASDAQ: AAPL) reports earnings Tuesday afternoon. The company's conference call is expected to begin at 5:00 p.m. ET; below is a live blog of the events.
5:58pm: The call has concluded.
5:55pm:. Maestri: "FX has been a significant hit in many ways. It reduces our growth rate."
5:55pm: Cook: "We are very focused on growing iPhone around the world and not just one geography.
5:53pm: Cook: LTE penetration in China is only at 12 percent. He believes raising that penetration plays into an incredible smartphone future there. He also noted the rise of the middle class and how it's transforming China.
5:52pm: Cook said that Apple is "extremely" bullish on China, nothing has changed, company continues to invest in that market.
5:50pm: Cook said that in the emerging markets where Apple has been doing well, Apple's share is still not high there, so there's a lot of growth left.
5:50pm: Cook thinks the iPad upgrade cycle will eventually occur.
5:50pm: Cook said he is still bullish on the iPad, noted "incredible" new features. Said the enterprise business is picking up.
5:48pm: Cook said Apple has a lot of great teams and can do many things, but the company remains very focused at the aggregate level.
5:46pm: Cook: "We think the phone has a lot of legs to it. many, many years, there's tons of innovation left in the phone. I think we're in the early innings of it, not in the late innings. I think the market rate of growth over the long haul will also be impressive."
5:44pm: Cook: "Secondly, to provide a bit more color, sales of the watch did exceed our expectations and they did so despite supply still trailing demand at the end of the quarter." Cook said that through the end of the quarter the Apple Watch sell-through was higher than the comparable period for the original iPhone and iPad.
5:40pm: Cook: "However, let me give you some color. So, to avoid reaching the wrong conclusion, if you look at the other product category and look at the revenue in this category, it would not be an accurate thing to look at the sequential change and year-over-year change and assume that were the total watch revenue."
5:39pm:. Cook said that Apple made the decision in September to not disclose shipments on the watch. He said this was not a matter of being transparent, it was a matter of not giving his competitors insight.
5:36pm: Maestri: "We guide to the current quarter. As we look at it at a macro level, I think, every cycle is different for a variety of reasons. There are also things not necessarily in our control. Currency markets can be very different from one year to the next."
5:34pm: "The 6 Plus is doing particularly well in the markets you would expect," said CFO Luca Maestri, noting China.
5:30pm: Cook: "The loyalty rate we have versus competition, an enormous gap there. I also look at first-time iPhone buyers. We're still seeing very large numbers in the countries you would want to see that in, like China, Russia and Brazil and so forth."
5:28pm: Cook: "We did exceptionally well in any way you look at it."
5:27pm: Apple CEO Tim Cook on iPhone sales and inventory: "Channel inventory did go down by 600,000. We sold more units than we thought we would. That was a part of that. We always run with just the amount of inventory that we think we need. To the degree that sales are distributed in countries with disproportionately shorter supply chains or the standard deviation is less, we would always choose to have less. In this particular quarter we were able to end right t the bottom of our range. we view that as a good thing, not a bad thing."
5:22pm: Apple Watch offset iPod declines. Apple does not intend to provide Apple Watch metrics because that data could help its competitors.
5:19pm: NPD recently indicated that iPad has 76 percent share of US tablet market priced above $200.
5:15pm: Apple said it is on track for 1.5 million US locations for Apple Pay.
5:04pm: Cook: Services revenue, of $5B, set a new record. App Store had its best quarter ever.
5:03pm: iPhone revenue growth was broadbased. We enjoyed the highest switchover rate from Android ever recorded.
5:02pm: Cook: iPhone unit sales grew 35%, almost 3x the growth of the smartphone market overall. We grew share in all revenue segments. Reducing channel inventories across our product lines by 100 million units across product lines.
4:31pm: Sees Q4 Sales $49B-$51B vs $51.05B Est.
4:30pm: Apple Reports Q3 EPS $1.85 Vs Exp $1.76, Sales $49.6B Vs Exp $48.58B
3:59pm: Shares neared the close at $130.96, down 0.8 percent.
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