Buster Hein (12:13 pm PDT, Jan 27th 2014)
Tim Cook and Peter Oppenheimer are set to get on the phones at 2 p.m. Pacific to tell investors all about Apple’s incredible holiday-quarter earnings. We’ll be right here, liveblogging the whole thing.
Rather than busting out a tsunami of posts, Alex Heath and I are going to test out the new Cult of Mac liveblog. Bookmark this page, come back, and grip up for what’s sure to be one of Apple’s best quarters ever.
Everyone’s favorite iTV analyst, Gene Munster, asked Cook about the future “product categories” he promised for 2014. Cook said that everything is still on track.
Munster tried to get Cook to talk about the Apple TV’s future, but Cook gave the boilerplate “we believe in innovation” response. And that’s the end of Q&A. Nothing too juicy. O well.
A timid analyst just asked Cook about future products, and Cook coldly responded with, “We’re working on things you can’t see today.” Then silence. So awkward.
When will these analysts ever learn?
Sounds like the iPhone 5c is most popular with people buying an iPhone for the first time. Cook says Apple doesn’t release it’s “New To iPhone” numbers but says the company saw “significant New To iPhone numbers on the iPhone 5c.”
Cook says that he thought Apple did a good job considering it was their first time launching two iPhones at once. He says the company won’t release a product that’s not fantastic though, when queried about dropping the iPhone 5c’s price.
Tim Cook just dropped a big clue that Apple is looking at mobile payments.
“The mobile payments area in general is one that we’ve been intrigued with,” Cook said. “It was one of the thoughts behind Touch ID.”
That’s definitely a hint that Apple’s rumored mobile payments system is indeed coming. Our own Mike Elgan recently made the case that because Apple already has your credit card on file thanks to the iTunes Store, the addition of Touch ID creates an attractive way to process transactions.
Sounds like Touch ID will be used for much more than unlocking your iPhone in the future.
When asked on accelerating Apple’s buyback program, Tim Cook said, “We’ve been buying back stock. Last year we increased the program overall by doubling it. We’ve been progressing on that. We’re a big believer in buying back the stock and that doesn’t change today whether the stock goes up or down.”
Take that, Carl Icahn.
Apple didn’t expect the 5s to be so popular. As a result, Cook says Apple lost sales last quarter for iPhone due to limited availability. Remember how hard it was to get a gold 5s?
“Our objective has always been to make the best, not the most. And I feel like we’re doing that.” – Tim Cook responding to questions on why it’s been hard for Apple to get more smartphone marketshare despite having the best device.
Tim sounds a little sick. Maybe he partied too hard at the Mac 30th anniversary?
Apple’s growth in China is going to be huge. Cook says they’re already growing faster than every thanks to the China Mobile deal.
“Last week was the best week for activations we’ve ever had in China,” said Cook. “It’s been an incredible start. At this moment we’re only selling in 16 cities and that number is projected to be 300 cities by the end of the year.”
iOS devices already account for 57% of mobile web traffic in China.
App Store success stories getting the spotlight. Clumsy Ninja apparently made $10 million during its first week of sales.
Apple opened 4 new stores last quarter and made $16.7 million per store last quarter with 21,000 visitors per store per week.
AAPL is already down 8% already in after-hours trading. Not good.
App developers have made $15 billion from the App Store.
Mac sales increased 19% since the holiday quarter last year. Nothing too amazing, but at least sales aren’t declining rapidly like the rest of the PC industry.
To put the shrinking PC market into perspective, more iPads were sold last quarter than PCs from top vendor Lenovo.
iOS 7 is the most popular operating system in the world, according to Apple.
Oppenheimer’s now talking about how all NFL teams have replaced their playbooks with iPads
iPhone sales doubled year-over-year in China
iPhone customers have a 90% loyalty rate, says Apple CFO Peter Oppenheimer.
Apple quotes comScore by saying that the iPhone accounts for 40% of smartphone sales in the U.S.
iOS devices account for 57% of mobile internet devices in China.
Peter Oppeinhemer starts off talking about how no other tech company has posted 57.6 billion in revenue for a quarter.
Here we go, the call just started.
“Apple sold more iPads at 26m than the #1 PC vendor (Lenovo at 14m) sold last quarter” https://twitter.com/BenBajarin/status/427923712319299584
Apple says it received 927 law enforcement account requests worldwide from Jan 1st 2013 to June 30, 2013.
Apple just published an Update on National Security and Law Enforcement Orders http://www.apple.com/pr/pdf/140127upd_nat_sec_and_law_enf_orders.pdf
This quarter’s results are particularly important for Apple because of all the new hardware it announced before Christmas. The iPhone is obviously selling well, but the iPad’s growth is insane when you consider that Apple only sold 14 million units in Q1 of 2013.
Our full post on Apple’s crazy Q1 earnings: http://www.cultofmac.com/264173/apple-announces-record-holiday-quarter-across-board/
Breakdown of Apple revenue growth by product line via Horace Dediu
Queue the stock plummet! https://twitter.com/JonErlichman/status/427918214966689792
“We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion,” – Peter Oppenheimer, Apple’s CFO.
Net profit sat at 13.1 billion. Gross margin was at 37.9 percent, down from 38.6 a year ago.
26 million iPads. 4.8 million Macs. Both up from the year-ago quarter.
51 million iPhone sold compared to 47.8 million a year-ago
Apple just sent out the press release with a record $57.6 billion in revenues
AAPL is currently up 5.12 trading at 551.19, but Wall Street usually pounds the stock down after an earnings call.
Apple’s press release for earnings should drop in about 30 minutes. The call is scheduled for 2PM PT
Greetings. I hope you’re as pumped as Tim is.