Apple FY 2Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“We know that [our results] didn’t meet everyone’s expectations and though we’ve achieved incredible and scale financial success, we acknowledge our growth rate have slowed and our margins have decreased from the exceptionally high level we experienced in 2012.”

[the decline in Apple’s stock price] “over the last couple of quarters has been very frustrating to all of us”

“The most important objective for Apple will always be creating innovative products and that is directly within our control.”

“We will continue to focus on the long-term and we remain very optimistic about our future. We are participating in large and growing markets we see great opportunities in front of us”

“the smartphone market for example IDC estimates that this market will double between 2012 and 2016 to an incredible 1.4 billion units annually”

“iPhones garnered the number one spot in the U.S. smartphone market for the three-month period ended in February with 39% share, up from 35% in the previous (inaudible) period.”

“It’s also for the first time, a non Japanese company has achieved the number one spot [in the Japanese smartphone market] for an entire year.”

“We experienced strong year-over-year growth in desktop sales following the December quarter launch of our stunning new iMacs offset by a decline in portable sales given a [slow] personal computer market overall.”

“We see two factors impacting gross margins sequentially. First and the largest of the two is the loss of leverage around sequentially lower revenue, and second a different product mix.”

“I don’t want to be more specific, but I’m just saying we’ve got some really great stuff coming all in across all of 2014.”

“The iPhone ASPs were down sequentially…as you noted. And this was driven primarily by mix.”

“we see an enormous number of first time smartphone buyers coming to market particularly in certain countries around the world. And so what we’ve done with that is and we started last quarter is we’ve made the iPhone 4 even more affordable and has made it more attractive to first time buyers”

“We believe that if anything the huge growth in tablets may want of benefiting them back. It pushes people to think about the product of buying in a different manner and people maybe more willing to buy a Mac (inaudible) buying a PC. And so we are going to continue making the best personal computers, our strategy is not changing…So this is an area we are continuing to invest there.”