Liveblog: Apple's monstrous Q4 earnings call | Cult of Mac

Liveblog: Apple’s monstrous Q4 earnings call

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Tim would rather you not ask about taxes.
Tim would rather you not ask about taxes.
Photo: Jim Merithew/Cult of Mac

Apple is ready to report its financial results for Q4 2015 to this afternoon and, as usual, investors are expecting it to be another record-breaker.

Cult of Mac will be here to liveblog all the action, from the numbers down to the analysts’ questions. iPhone 6s sales will loom large on the minds of investors who have been leery that demand might be waning. Revenues are expected to top $51 billion, but with China’s economy slumping, we wouldn’t be shocked if Wall Street isn’t thrilled with the numbers.

Tim Cook or CFO Luca Maestri will kick off at 2 p.m. Pacific, but we’ll be jumping on the liveblogging party early with a breakdown of all the numbers. Bookmark this page and join us for Apple’s monstrous earnings call.

October 27, 2015 3:00 pm PDT Evan Killham

I wasn’t sleeping.

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October 27, 2015 2:59 pm PDT Buster Hein

….Aaaannnd that’s it. Quite possibly, one of the all-time most boring earnings calls ever.

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October 27, 2015 2:49 pm PDT Buster Hein

Tim won’t predict how many new customers Apple will pick up in 2016. The upgrade rate is low, which Tim Cook says is a good thing because that means there are a lot of people out there that haven’t bothered to upgrade yet.

“I don’t know if we’ll have more new than not,” said Cook, “But that’s always our objective.”

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October 27, 2015 2:46 pm PDT Buster Hein

Apple is investing in China for the decades ahead, says Cook. That’s not just for sales. The developer community there is growing faster than anywhere else in the world. Tim says he’s impressed with the enthusiasm from customers there during his visit.

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October 27, 2015 2:45 pm PDT Buster Hein

After three profoundly boring economic questions, Tim Cook is now talking about how much ass China’s economy is kicking right now. He says if you turned off the web and TV and just looked Apple’s data you wouldn’t even notice a difference at the consumer level of the economy.

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October 27, 2015 2:34 pm PDT Buster Hein

Gene Munster did not pull out an Apple TV question. Instead he asked about iPhone upgrade cycles ‘compressing’ over the next few years because of the new upgrade program.

Tim Cook responded saying that Apple thinks the broader upgrade program (not just Apple’s retail program) will have a positive impact on replacement cycles.

From a financial perspective, the iPhone sales through the iPhone upgrade program registers the transaction as a sale, not a lease.

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October 27, 2015 2:30 pm PDT Buster Hein

Apple Watch is just getting going, Cook says. Growth seems to be really great in the App Store. Apple Music seems to be going well and the enterprise business is ‘not to be underestimated’ says Cook.

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October 27, 2015 2:29 pm PDT Buster Hein

Morgan Stanley asked if the company is comfortable that it won’t have huge growth above 10% next quarter.

“We believe iPhone will grow in Q1,” Tim Cook said. “We base that on what we see based on a switcher point of view. We recorded the highest rate of Android switchers ever last quarter with 30%.”

Cook also noted that the majority install base of iPhone users still haven’t upgraded. China also is a big factor, and Cook says the company is ‘reasonably well positioned there.” He said he’s also impressed with the company’s progress in Vietnam, Indonesia, and India as well.

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October 27, 2015 2:25 pm PDT Buster Hein

Finally, the call has been opened to questions. Here they come….

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October 27, 2015 2:22 pm PDT Buster Hein

Apple expects to open or rebuild 40 – 50 stores next year. The company will have 40 stores open in China by the end of next year.

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October 27, 2015 2:21 pm PDT Buster Hein

Revenue from the App Store grew 25%, setting an all-time record. In China it grew 127% year-over-year.

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October 27, 2015 2:19 pm PDT Buster Hein

Luca says IBM now has 30,000 Macs deployed in the company. $270 dollars are saved per Mac over regular PCs because they require less IT support and other services.

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October 27, 2015 2:18 pm PDT Buster Hein

iPad sales are down to 9.8 million from 12.3 million this quarter last year. Luca is citing some customer satisfaction surveys that show 97% of customers are happy with their purchase. But not enough people are buying them, even though everyone loves them.

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October 27, 2015 2:14 pm PDT Buster Hein

Luca is ready to take over and spill some more numbers at us. This time with more percentages.

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October 27, 2015 2:13 pm PDT Buster Hein

40 Million people are reading Apple News.

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October 27, 2015 2:12 pm PDT Evan Killham

American Express is Apple Paying up. We heard a lot of regions.

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October 27, 2015 2:12 pm PDT Buster Hein

American Express is bringing Apple Pay to more global markets. Australia and Canada get it this year, and it will go to Spain, Singapore and Hong Kong in 2016.

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October 27, 2015 2:11 pm PDT Buster Hein

Starbucks is getting Apple Pay in all stores in 2016.

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October 27, 2015 2:11 pm PDT Buster Hein

Apple Music coming to new Apple TV this week. But when is it coming to Android?

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October 27, 2015 2:10 pm PDT Buster Hein

Apple completed 15 M&A transactions during fiscal 2015 to improve Apple Car roadmap.

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October 27, 2015 2:09 pm PDT Evan Killham

61 percent adoption of iOS 9.

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October 27, 2015 2:09 pm PDT Evan Killham

He’s putting numbers where we don’t want numbers and skipping numbers where we want to hear numbers.

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October 27, 2015 2:09 pm PDT Evan Killham

“Huge first day” for Apple TV.

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October 27, 2015 2:08 pm PDT Buster Hein

“I just returned from a 4 day visit in China,” brags Tim. Yeah, we saw your selfie at the wall.

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October 27, 2015 2:08 pm PDT Evan Killham

But he isn’t mentioning the one number we’re actually interested in: How many goddamned Watches they’ve sold.

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October 27, 2015 2:08 pm PDT Evan Killham

Over 1,300 native watchOS apps.

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October 27, 2015 2:07 pm PDT Buster Hein

13,000 apps on the Apple Watch App Store. #morenumbers

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October 27, 2015 2:07 pm PDT Buster Hein

I can’t keep up with the numbers. It’s futile. My brain glazes over and my fingers hurt.

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October 27, 2015 2:07 pm PDT Buster Hein

App Store set new quarterly records for overall revenue. $1.5 billion in Services revenue. Apple Watch sales were ahead of expectations.

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October 27, 2015 2:07 pm PDT Evan Killham

5.7 million Macs. It’s an all-time record. That’s among an 11-percent market shrink.

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October 27, 2015 2:05 pm PDT Evan Killham

My brain can’t even handle all of these numbers Cook is slinging.

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October 27, 2015 2:04 pm PDT Buster Hein

Apple made $234 billion in revenue. Largest for the company ever. The company’s growth in one year was greater than 90% of all Fortune 500 companies COMBINED!

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October 27, 2015 2:02 pm PDT Buster Hein

Alright the call if finally starting. Tim Cook will kick things off with opening remarks, send it over to Luca, and then take questions.

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October 27, 2015 2:00 pm PDT Buster Hein

Jan Dawson has a nice graph that illustrates how utterly dependent Apple has become on China for growth.

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October 27, 2015 1:55 pm PDT Buster Hein

Apple’s going to downplay how badly the iPad is doing, but just to put its sales figures into perspective, here’s a little graph from QZ. Sales haven’t dipped below 10 million since 2011!

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October 27, 2015 1:53 pm PDT Buster Hein

We’re on hold for Apple’s earnings call. Tim and Luca should be on the line in like 7 minutes. You can listen to the snoozefest with us here if you like.

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October 27, 2015 1:49 pm PDT Buster Hein

iPad sales have declined for another quarter. Luca says they’re seeing bit of “cannibalization” of other products, but they’re not worried. They got that iPad Pro coming out and that’s going to solve all their problems… right? RIGHT?!

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October 27, 2015 1:48 pm PDT Buster Hein

Apple still isn’t giving any sales figures on the Apple Watch, but Emily Chang at Bloomberg spoke to Luca Maestri who says Watch sales are up sequentially. The device is now selling in nearly 5000 locations.

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October 27, 2015 1:38 pm PDT Buster Hein

51.5 billion in Revenue. 48.5 million iPhones sold. 9.88 million iPads sold. 5.7 million Macs sold. My post on it just went up right here.

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October 27, 2015 1:36 pm PDT Buster Hein

The earnings report has just been published and it looks like Apple just barely beat Wall Street’s expectations.

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