Apple Mac HQ

If you don’t want to listen to the Quicktime stream or read a live blog, here are the most interesting numbers from Apple’s 2008 Q3 results which were released today. My comments are in parentheses.

B = Billion
M = Million
YAQ = Year ago quarter
FY = Fiscal Year

Revenue/Financials
-Best June quarter for revenue and earnings in Apple history
-Revenue of 7.46B; 38% increase over YAQ
-Net Income 1.07B; 31% increase over YAQ
-EPS of $1.19
-Gross margin was 34.8%; down from 36.9% in YAQ
-International sales accounted for 42% of revenue
-Europe revenue growth was 43% over YAQ
-Operating Expenses were 1.21B
-Capital expenditures were 304M in quarter
-1.33B in cash generated in quarter
-5.4B in cash generated in first 3 quarters of fiscal 2008
-20.8B in cash on hand
-Q4 estimates of 7.8B in revenue

Mac
-Shipped 2.5M Macs; a new quarterly record
-Mac unit sales up 41% over YAQ
-49% increase in Mac desktop sales over YAQ
-37% increase in Mac portable sales over YAQ
-25% growth in Mac US education sales over YAQ
-Mac channel inventory is currently below average, currently at 3-4 weeks
-Mac products and services accounted for 61% of total quarterly revenue

iPhone
-Sold 717,000 iPhones (iPhone 3G was not released in this quarter)
-Sold 1M iPhone 3Gs in 3 days (sales not recognized in this quarter)
-Over 25M iPhone apps downloaded to date (sales not recognized in this quarter)
-Q4 iPhone sales are expected to be the highest for any quarter yet (well duh; a distribution in over 20 countries will do that)
-”About” 20 additional countries will have an August 22nd iPhone 3G launch; bringing the total to over 40
-iPhone will be in 70 countries by the end of the year
-Apple still expects to sell 10M iPhones in calendar year 2008
-Revenue of 419M was recognized from iPhone sales, iPhone accessories, and payments from phone carriers. This does not include iPhone sales between March 6th and July 10th (due to accounting methods in relation to the announcement and release of iPhone 2.0 software).

iPod/iTunes
-Sold 11M iPods; 12% increase over YAQ
-7% iPod revenue growth over YAQ
-Over 70% market share in MP3 players in the US; based on latest public data
-Over 5B songs sold since iTunes released

Apple Stores
-58% growth in Apple Store retail sales over YAQ
-About 32M visitors to Apple Stores; up 10M over YAQ
-Apple Stores reported 1.44B in revenue
-Average revenue per store was 6.8M; up 33% over YAQ
-Over 50% of in store Mac sales were to new Mac customers
-8 new Apple Stores opened in quarter; including first in Australia
-Q3 ended with 216 Apple Stores
-Apple Stores coming to Switzerland and Germany in 2008
-Expect to close FY 2008 with 242 Apple Stores

Other
-Gross margin will decline for Q4 in part from a “future product transition” (ideas anyone?)
-Added 170 Best Buy mini stores; bringing the total to 570
-Added over 1600 storefronts to Mac distribution in the last year
-In a question about the health of Steve Job’s: “Steve loves Apple, he serves as the CEO at the pleasure of Apple’s board and has no plans to leave Apple. Steve’s health is a private matter.”
-Apple continues to invest in the Apple TV; yet it remains a “hobby”
-Analysts seemed overly concerned about the 30% gross margin Apple predicted for FY 2009

As of this post, the stock is down more than $16 in after hours trading. Record sales, incredible growth, stock tumbles. I guess you can’t always please The Street!

Apple will report their 2008 first quarter earnings report on Tuesday at 5:00 EDT. Analysts are estimating Apple will earn $1.62 cents per share on $9.47 billion. This quarter is Apple’s busiest since it incorporates the holiday season.

iPod sales are expected to take center stage in the earnings report. The first quarter is usually a strong quarter for the iPod based on strong holiday sales. In addition to strong iPod sales, analysts are reporting that the Macbook is also selling quite well. Interest in the iPhone has also remained strong. In fact, my father-in-laws’ girlfriend recently purchased an iPhone. I believe the iPhone is her first Apple purchase.

You can listen to the first quarter results conference call a number of ways.

Phone: (877) 879-6184 (toll-free) or (719) 325-4842.

Webcast: You can listen to the audio webcast here.

Disclosure: I own an insignificant number of Apple, Inc (AAPL) shares.

The stock market delivered a great post Christmas present to Apple Inc shareholders today. Just before 2:00PM EST, Apple shares hit $200 a share for the first time. With the Mac selling like never before, iPods continuing to sell like gangbusters, and the iPhone doing well, Apple stock has more than doubled in value this year. With the Stevenote just a few weeks away, there is no telling what the stock will do in the short term. For the past few years Macworld has brought a short term spike in the stock price.

If you are an Apple shareholder, Apple has definitely brought joy this year. 2007 has been a banner year for Apple and their shareholders. Who knows what 2008 will bring?

Disclosure: I own an insignificant number of Apple Inc shares.

Apple, Inc was recently the focus of another Wallstrip video podcast. While a little light on content this week, host Lindsay Campbell starts the podcast breaking up with the Dell on her desk because she “loves” Apple. Lindsay also talks to a few people standing outside the SoHo Apple Store waiting for the free Dave Gahan (from Depeche Mode) concert that was recorded exclusively for iTunes. I’ve embedded the entire episode of Wallstrip below.

Apple released their 4th quarter financial results today after the market closed. If you don’t want to listen to the entire report, here are some numbers or points I found interesting. My comments are in parentheses.

B = Billion
M = Million
FY = Fiscal Year

Revenue/Financials
-Revenue of 6.22B; a 29% increase over year ago quarter
-Net income of 904M, up 67% over year ago quarter
-Mac products and services accounted for 62% of total quarterly revenue
-36% of quarterly revenue were from music related products
-Revenue of 118M was recognized from iPhone sales, iPhone accessories, and payments from AT&T
-Apple Stores averaged revenue of 6.6M based on an average of 190 stores
-33.6% total company gross margin
-Capitalized 22M of software development expense related to Leopard in 4Q
-15.4B in cash balance to end the quarter
-24B in revenue FY 2007
-3.5B in net income for FY 2007
-Direct sales were 57% of total company revenue in 4Q

Mac
-Shipped 2.16M Macs in 4Q; which is a new quarterly record
-34% Mac growth over year ago quarter
-Driven by the iMac redesign; 31% year over year growth in desktop systems
-Sales of Macbook and Macbook Pro increased 37% over year ago quarter
-62% of Macs sold were Macbook and Macbook Pro
-Q4 ended with less than 3 weeks channel inventory; which is below average
-7M Macs sold in FY 2007
-Around 8700 Mac sales points

iPhone
-Sold 1.1M iPhones during 4Q; 1.4M to date
-iPhone was the fourth highest selling handset in the US during the 4Q according to market research
-Apple anticipates most iPhone $100 credits to be recorded by end of calendar year 2007
-Working with Salesforce.com on their iPhone software
-On target to enter Asia in 2008 with iPhone
-Apple estimates 250K iPhones sold to individuals wishing to unlock them
-No update on previously mentioned iPhone testing in the Enterprise (maybe with Active Sync?)
-No news on new iPhone model. Apple did not comment on entering Asia with a 2.5G phone. (Could this point to the Asia 2008 launch for a 3G iPhone?)

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Apple will report their much anticipated 2007 fourth quarter earnings report on Monday at 5:00 EDT. Analysts are expecting Apple to beat their guidance of $.65 cents per share on $5.7 billion. Apple is often cited as giving conservative guidance so beating guidance comes as no surprise.

Mac sales are expected to take center stage on the earnings report. The fourth quarter is usually a strong quarter for the Mac due to back to school sales. While the Mac may take center stage, iPod and iPhone sales will also be of interest to investors. During the quarter, Apple announced redesigned iPods (except the shuffle which only got new colors), a new iMac, iLife 08, iWork 08, and the price cut heard around the world.

You can listen to the fourth quarter results conference call a number of ways.

Phone: (719) 325-4745.

Webcast: You can listen to the audio webcast here.

Disclosure: I own an insignificant number of Apple, Inc (AAPL) shares.

Update: You can find a breakdown of the fourth quarter results here.