Live Update: Apple Financials

Jason Snell - 1:35:30 p.m. Pacific—The results are in! Apple Q4 2009: $9.87B revenue, $1.67B profit. 3.05M Macs sold, 10.2M iPods, 7.4M iPhones.

Dan Moren - 1:36:44—It's the kind of thing that makes you wonder: what if there weren't a recession on, huh?

MacJournals via Twitter - 1:39:52—Mac unit desktop sales down 7% sequentially, 16% year over year. Mac desktop revenues down 4% seq, 20% year over year.

MacJournals via Twitter - 1:41:12—Mac desktop average selling price (ASP) up 4% since July but down 5% year over year. Portable ASPs down 6% year-over-year, too. Mac avg -7%.

MacJournals via Twitter - 1:41:12—Mac portable unit sales up 29% sequentially, up 35% year-over-year. All Macs: unit sales up 17% sequentially and year over year.

Jason Snell - 1:42:08—We're piping in some tweets from our friends at MacJournals, as they analyze the numbers.

MacJournals via Twitter - 1:42:33—Mac portable revenue sales up 30% sequentially, 27% year over year. For all Macs, revenue up 19% sequentially, 9% year over year.

MacJournals via Twitter - 1:42:33—All Apple geographic units up in Mac units and revenue, both sequentially and year-over-year, with exception of Japan: up year-over-year

MacJournals via Twitter - 1:42:33—Apple Japan sales down sharply since July quarter, though: Mac units down 27%, overall revenue down 13%.

Jason Snell - 1:42:47—Laptop sales made up a staggering 74% of Apple's Mac sales this quarter.

Jason Snell - 1:43:32—The average selling price of both desktop and laptops was up from last quarter, after a few successive quarters of downward pressure on the ASP.

MacJournals via Twitter - 1:43:35—Apple peripheral and other hardware sales down 8% in revenue year over year. iPod unit sales down less than 0.5% sequentially.

Dan Moren - 1:43:40—That is a truly huge number of laptops. Sounds like the desktop consumer market is definitely dwindling.

Jason Snell - 1:44:28—iPod units were down 8% year over year, which is similar to what we saw last quarter. It will be interesting to hear them talk about "cannibalization" and see if they quantify the iPod touch sales versus "traditional" iPods.

Jason Snell - 1:44:48—The ASP of iPods actually went up, to $154, Suggests growing iPod touch sales.

MacJournals via Twitter - 1:45:02—ALL other unmentioned sequential and year-over-year comparisons are up. Biggest: iPhone revenue up 185% year over year. ASPs up 167%.

MacJournals via Twitter - 1:45:02—Apple's conference call starts at the top of the hour. Listen live on the Web

Dan Moren - 1:46:21—Also, Apple is continuing to report results for this quarter in both GAAP and non-GAAP numbers. This may be the last time we see that, as the Financial Accounting Standards Board has changed the rules and no longer requires the use of subscription accounting. See full story.

Jason Snell - 1:47:22—Our first news story about the earnings has been posted.

Dan Moren - 1:51:14—Man, looking at that chart, it's impressive just how high the revenue was this quarter. It's pretty close to last year's holiday quarter.

Dan Moren - 1:51:30—And far, far outstripping Q4 of 2008.

Jason Snell - 1:52:47—Apple's press release on the results is available for those so inclined. Our charts are pretty, though, aren't they?

Jason Snell - 1:53:18—As you can see from the chart, Q4 is usually a slight step up from Q3. This year was a much, much bigger jump.

Comment from Scott - 1:53:55—Do you happen to know the after hours stock trading price?

Jason Snell - 1:54:10—Yahoo Finance says it's currently $201.92, up from a close of $189.86 at end of market.

MacJournals via Twitter - 1:54:29—If the tweet stream is too much for your client, our tweets are also pouring into the live coverage from Macworld at http://bit.ly/moiUL

Jason Snell - 1:56:58—Thanks to MacJournals for the shout out!

MacJournals via Twitter - 1:59:31—Apple is clearly working on some big things: R&D expenditures for the year of $1.333B are right around 10% of gross margin.

Comment from Boman - 1:59:49—Any software numbers yet? Especially some early Snow Leopard sales estimates could be interesting.

Jason Snell - 1:59:59—Nothing in the financial documents; I'd expect that to be addressed in the call.

Dan Moren - 2:01:05—The audio on the music we're listening to right now is full of clicks and pops—man, this iTunes LP format sounds JUST LIKE the classic vinyl.

Jason Snell - 2:01:30—It would not be an Apple live update without us talking about the intro music, Dan.

MacJournals via Twitter - 2:01:38—Cash has also increased in the past year by over $6 billion, likely due to unrecognized iPhone earnings that are recognized on a daily basis

MacJournals via Twitter - 2:01:38—Upgrades like Snow Leopard are in the "Software & Other" line, with revenue up 23% seq and 18% y-o-y, but that includes all apps (Final Cut)

Dan Moren - 2:01:49—It's what we do, Jason. It's what we do.

MacJournals via Twitter - 2:03:10—Apple's "long term marketable securities" value is down over $8 billion year-over-year. Some probably market losses, others moved to cash.

Dan Moren - 2:03:46—We will be getting underway shortly, or so the nice lady has just informed us.

Comment from Guest - 2:04:11—Any chance of them discussing future releases today, I have been waiting as well as 2 other family members to all buy new imacs, we are all waiting for new releases

Jason Snell - 2:04:25—I'd say there's no chance. Apple doesn't announce future products in these calls.

Dan Moren - 2:04:27—I wouldn't hold your breath, Guest.

Jason Snell - 2:04:38—Oooh, someone just coughed!

Dan Moren - 2:04:41—No seriously, that would be unsafe. No breath holding.

Dan Moren - 2:04:46—Here we go.

MacJournals via Twitter - 2:05:21—CNBC's Goldman: "Apple has a clear message to the short [seller]s tonight: Bite me."

Dan Moren - 2:05:23—Speaking today will be, of course, Peter Oppenheimer and Tim Cook, along with Gary Whistler (the silent treasurer).

Jason Snell - 2:05:29—Our cast of characters.

Dan Moren - 2:05:56—Remember this call contains forward-looking information. You have been warned.

Dan Moren - 2:06:07—(Not to be confused with FlashForward-looking statements).

Dan Moren - 2:06:28—Extremely pleased to report Apple's most profitable quarter ever and sales of more Macs and iPhones than in any previous quarter.

Dan Moren - 2:06:53—Revenue for quarter was $9.8 billion, second highest quarterly revenue ever after last December quarter. Operating margin was $2.91 billion, 22 percent of revenue.

MacJournals via Twitter - 2:07:02—Call beginning. We won't retweet things mentioned in the press release.

Dan Moren - 2:07:02—Net income was 1.67 billion, earnings per share of $1.82.

Dan Moren - 2:07:18—$12.25 billion for adjusted sales. $5.21 billion in adjusted gross margin.

Comment from Jonathan - 2:07:27—This is great! How long has MacWorld been using Cover It Live? (This is our first time. Be gentle.-JS)

Dan Moren - 2:07:37—Non-GAAP financial measures provided added transparency.

Dan Moren - 2:07:57—Mac sales of $3.05 million, beating previous record by over 440,000.

Dan Moren - 2:08:17—Mac is growing faster than market in 19 of past 20 quarters. Result of unmatched innovation and commitment of providing best hardware and software.

Dan Moren - 2:08:31—Compares favorably to IDC's 2 percent growth for market overall in Sep. quarter.

Dan Moren - 2:08:40—Portable sales increased 35% year over year and made 74% of Mac mix.

Dan Moren - 2:08:50—Particularly pleasd with 42% year over year growth in Asia/Pacific.

Dan Moren - 2:09:02—Very successful with back to school, very pleased with 12% year over year growth in education.

Jason Snell - 2:09:17—Translation: Those IDC reports say the computer industry is growing by a meager two percent, but Apple growth was way above that.

MacJournals via Twitter - 2:09:18—CNBC analyst: all 3M Mac unit sales are about people willing to pay for "premium" products. Hard to shake these guys off a narrative.

MacJournals via Twitter - 2:09:18—Peter Oppenheimer, CFO ("PO" on future reference): Portables were 74% of Mac unit sales

MacJournals via Twitter - 2:09:18—PO: Highest quarterly Mac sales EVER in US Education market.

MacJournals via Twitter - 2:09:18—PO: Snow Leopard response "tremendous," selling twice as fast as Leopard (but costs $100 less, he doesn't mention)

Dan Moren - 2:09:30—Shipments included 50,000 MacBooks to state of Maine as part of ongoing 1-to-1 initiative.Customer response to Snow Leopard has been tremendous. Twice the rate of box sales as Leopard release.

Dan Moren - 2:09:52—Began and ending quarter between 3-4 weeks of Mac channel inventory.

Dan Moren - 2:10:03—Music products: almost 10.2 million iPods, down from just over 11 million in year ago quarter.

Dan Moren - 2:10:17—50 percent of recent iPod buyers were buying first iPod, including in US, Japan, Australia, and the UK.

Dan Moren - 2:10:27—Customers like the nano's new features, such as camera, etc.

Dan Moren - 2:10:37—iPod touch sales up 100% year over year, fueled by back to school season and App Store.

Dan Moren - 2:10:50—New $199 entry price point of iPod touch, and updated features of nano, shuffle, and classic, all set for holiday season.

Jason Snell - 2:11:08—That 56% of recent iPod buyers being first-time MP3 buyers is an amazing stat — in this case based on "our research" rather than Apple retail stores, but still a crazy number.

Dan Moren - 2:11:20—Share of U.S. market for MP3 players remains at over 70% and iPod was top selling MP3 player and continued to gain share year over year in nearly every country. Began and entered quarter withing target range of 3-4 weeks.

Dan Moren - 2:11:42—Stores in 23 countries, iTunes is world's largest music retailer.

Dan Moren - 2:12:16—iPhone time. Almost 7.4 million handsets in Sep. quarter. New company record and beating year ago quarter. iPhone sell thru increased 38% year over year.

Dan Moren - 2:12:45—Very pleased with J.D. Power's announcement that iPhone has topped customer satisfaction for business and consumer. Not only maintained its lead, but widened it over next closest competitor in both categories.

Jason Snell - 2:12:57—Apple's point with the iPhone sales is not only that it was up over the year-ago quarter, but that quarter last year was a GOOD quarter. That was when the 3G drove sales and Apple expanded into lots of new international markets. So they're saying, it's even more impressive than 7% growth would otherwise be.

Dan Moren - 2:13:04—Looking forward to selling iPhone into China later this month. Expanding carrier relationships in UK and Canada.

Dan Moren - 2:13:24—Continued to enhance App Store experience with iPhone OS 3.1 including new features.

Dan Moren - 2:13:38—Recognized revenue from iPhone hadnset sales $2.3 billion compared to $806 million year ago quarter, up 185%.

Dan Moren - 2:13:48—Sales value of iPhones sold during quarter was $4.5billion.

Dan Moren - 2:14:01—Apple Stores had a record quarter. $1.78 billion in revenue.

Dan Moren - 2:14:14—670,000 Macs compared to 596,000 Macs year ago quarter. About half to new Mac users.

Dan Moren - 2:14:22—Fifteen new stores open during quarter, 273 now.

Dan Moren - 2:14:34—Avg. revenue per store was $7.1 million, compared to $7.6 million year ago quarter.

Dan Moren - 2:14:53—45.9 million visitors in stores, compared to 42.7 million visitors in year ago quarter.

Dan Moren - 2:15:01—608,000 personal training sessions.

Jason Snell - 2:15:24—As before, the average sales per retail store metric is the only place where you really, truly see the effects of the recession on Apple. Apple Retail is strong but has been hit by the recession; still, it's weathered it pretty well.

Dan Moren - 2:15:36—Fiscal 2009 was milestone year for retail stores. In addition to opening to 26, have remodeled 72 stores. Opened more stores int'lly than in US. November includes first two stores in France, including on ein Louvre, and a new one in Manhattan.

Jason Snell - 2:15:43—So, new Apple Store in the Louvre. Plus there's a McDonald's in there. They'll let anyone in.

Comment from Layton Duncan - 2:15:55—Wow almost 1 iPhone sold every second

Comment from erfon - 2:16:00—i think these are the best apple financials i've ever heard...

Dan Moren - 2:16:00—Sold more Snow Leopard, better product mix, and spent less on iPod transition than planned. Component costs increased, but not as high as expected.

Dan Moren - 2:16:14—The tax rate was 26% in the quarter.

Dan Moren - 2:16:31—Cash + short term and long term marketable securities, $34 billion at end of quarter, up $2.9 billion from end of last quarter.

Jason Snell - 2:16:34—Cash is my favorite stat. Apple is sitting on a mattress full of $34 billion.

Dan Moren - 2:16:42—$3.1 billion in cash flow for quarter, including NAND purchases.

Dan Moren - 2:16:48—Continuing preservation of capital for cash reserves.

Dan Moren - 2:17:04—Looking ahead to Dec, here' s the outlook: sunny, with a chance of cash!

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