AAPL earnings call Live

That's it!  Wow. Having a quarter like that in this economy is a great sign.  My thoughts yesterday were pretty accurate though I think there are some warning signs.  Only 4.4 Million iPhones for the quarter isn't that great.  iPod numbers are down in the US year over year as well. 

Oh, and they keep teasing us about the product pipeline...

Q&A (only interesting stuff)

App store to be broken out from iTunes?  No.

How many apps were paid ves. free? It is a secret.

What do you think other phone devices are infringing on the iPhone's multi-touch?  We don't mind competition but we'll sue the pants off of anyone who steals our IP.

Apple stores: 25 stores in '09, 1/2 international

Retail stores selling at discounted rates?  It is fine.

Portables sold a lot in October after revamp.  Portables up 34% year over year despite tough environment.

International growth for Mac was 16% lots of countries over 20%

Pluses and minuses of Walmart?  No data on performance.  From a reach point of view, they are everywhere.  We sell iPods there and have a good relationship.

28 Billion dollar war chest...no update on plans.

Innovate out of this recession just like last one. Marketing, Engineering, User experience.

No comments on Snow Leopard.

iPods numbers in US contracted 3%.  All of the growth was international. 

Netbooks: We still have some ideas but don't think the current market offers a good product.

Desktops: Mac Pro are significantly down year over year.  iMacs less so.

Netbooks: We still have some ideas but don't think the current market offers a good product. 

AppleTV up 300% - movie rental helps AppleTV.  Apple will continue to invest in it.

iPhone$199 price point is solid (probably won't see a $99 iPhone)

Stores continue to grow.  Expect to open 25 more.

Margins will be well over 30% for 1st half of 2009.  second half should be closer to 30%

Ben Reizes: How's Steve?  (Boom!)

Peter: Steve is CEO of Apple.  Tim does day to day

Tim : There is an extreme breadth of executive management. Then reads PR release...(Doesn't seem to imply Steve is coming back)

Prepared statements

5:14 - rev: between $7.6 and $8 billion gross margin 32.5%.

5:12 - Apple cash went from $24 Billion to $28 Billion up $3.6 Billion.  Preservation of capital is doing well (Watch out Berkshire)

5:11 - Apple Stores: 46 million visitors 14,000/ week. revenue 1.74 billion, up 2%.

5:10 - App store - Software is the key ingredient to mobile experience.

5:09 - 13.7 million iPhones for the year. - well over their 10 million goal.

5:08 Music products 22.5 million 20% growth.  New iPod Touches and color selection of nano.  App store

US, UK Australia Market over 70% of MP3s players.  Gaining share  in other big markets.  4-6 weeks inventory.

iTunes store had record inventory.  Biggest music quarter ever.  

5:06 - Desktops contracted year over year but MacBooks kept up.

5:05 -Apple's highest income and earnings quarter ever (What recession?).  First Q over $10 billion in revenue.  Highest iPod sales ever.

5:00 Apple up 11% in after hours

4:55 Violins!

From Apple 2.0:

• Revenue: $10.167 billion, up from $9.608 billion in Q1 2008
• Profit: $1.605 billion, up from $1.581
• EPS: $1.78 per diluted share vs. $1.76
• iPods: 22.7 million
• iPhones: 4.4 million
• Macs: 2.524 million