1:38 p.m. PT - Jason Snell: Hi everyone. We're digesting the numbers now in advance of the call in 20 minutes
Comment by biggsjm: Here's a time-saver. They are great.
1:40 p.m. PT - Matt Deatherage, MacJournals: Hello from MacJournals as well; we're doing the same
1:41 p.m. PT - JS: Indeed they are. Days like this I wish I had three 27-inch monitors...
1:42 p.m. PT - Dan Moren: You know, you really shouldn't liveblog for an hour after digesting financial numbers.
1:42 p.m. PT - DM: But we like to live on the edge here.
Comment by RatioTrader: Will we be able to hear the conference call here?
1:43 p.m. PT - JS: @RatioTrader: No, but you can get to it from apple.com/investor/ as a QT stream
Comment by stephenchan: Works on iPad? I though this was a flash app
1:43 p.m. PT - JS: Nope, Cover It Live is all DHTML.
1:43 p.m. PT - JS: Except for a lame flash animation.
1:43 p.m. PT - JS: Dan and I are joined by the embodiment of MacJournals.com, the excellent journal of all things Mac related. And a very smart embodiment it is too.
1:44 p.m. PT - JS: So, some first takes: I'm actually kind of stunned at the iPod number, which is actually down only 1.2% year over year, while the three previous quarters were between seven and eight percent down YOY.
1:44 p.m. PT - JS: I'm gonna guess that's grazy good iPod touch sales, but it will be interesting to see if Apple can lend more detail there.
Comment by ubercool: Already been on CNBC, hurry up! :)
1:45 p.m. PT - JS: Oh, sorry, details coming on the site, but in here...
1:45 p.m. PT - JS: $3.33 earnings per share on revenue of $13.5 billion
1:46 p.m. PT - JS: Mac sales: 3.36 million. iPhones: 8.74 million. iPods: 10.9 million
1:47 p.m. PT - JS: Here's the release
1:47 p.m. PT - DM: Sadly, we won't see much about iPad sales, since Q2 ended on March 27, before the iPad shipped on April 3.
1:48 p.m. PT - JS: More number crunching: Mac sales were up year over year. But that year-ago quarter was the weakest quarter for Mac sales in the previous 9. This one is good, but down from the last two quarters.
Comment by biggsjm: Wow. 3.36 million. Expectation was 2.9 million macs and 10 million iPhones. Soft on iPhones but really strong on Macs.
Comment by jeffrichardson: Odds of Apple discussing the "lost" iPhone? I doubt it, but it would be interesting if they did. An analyst could ask whether the Gizmodo story is expected to have an impact on future iPhone sales to try to make the question seem relevant.
1:48 p.m. PT - JS: @jeffrichardson: I think they might mention it. When prompted.
1:48 p.m. PT - MD/MJ: I'll be a bit slow since I'm tweeting this stuff as well, at least for now, but here goes some:
1:48 p.m. PT - JS: MacJournals, I can feed your tweets in here too.
1:49 p.m. PT - MD/MJ: All sales fell from holiday quarter somewhat, but iPhone average selling prices and music revenues were both up, surprisingly
1:49 p.m. PT - JS: Or not.
1:49 p.m. PT - MD/MJ: Ah, OK Jason, please do. Makes less cut and paste :)
1:50 p.m. PT - JS: Okay, we should be auto-feeding MacJournals tweets in here.
1:50 p.m. PT - JS: Everyone, we're moderating comments and won't approve all of them (sorry) but we are reading them! (Hi to John Welch and Dave Zatz...)
1:51 p.m. PT - MD/MJ: Mac sales were up from a bad year-ago quarter, but average selling prices fell for portables (9%), leading to 4% overall decline in ASPs
1:51 p.m. PT - MD/MJ: The ASP trend is useful, but not specific numbers since the price Apple gets varies wildly depending on whether a reseller sold the CPU.
1:51 p.m. PT - JS: I'm impressed by the iPhone unit sales. That's actually the most iPhone units sold in any quarter, EVER. And a non-holiday quarter. Some serious and maybe unexpected momentum for the iPhone.
1:52 p.m. PT - JS: As MacJournals says, the average selling price of a Mac laptop dipped to $1240 this quarter, down about $56 from last quarter. I assume the new laptops just introduced will boost those numbers next quarter.
1:52 p.m. PT - MD/MJ: At $5.445 billion, iPhone sales accounted for 40% of Apple's revenue. All Mac sales were 28%, all iPod/Music sales were 24%.
1:52 p.m. PT - MD/MJ: Apple received, on average, about $620 per iPhone sold in the quarter. About $170 per iPod sold, about $1275 for each Mac.
Comment by zweigand: You said 3.6M Mac sales …it was 2.94M
1:52 p.m. PT - JS: correct, sorry, total Mac sales are 2.943M - revenue of $3.76M
Comment by BrianCGillespie: Their iPhone comment will probably go along the lines of, "we can't comment while there is a criminal investigation going on."
1:53 p.m. PT - MD/MJ: That $1240 is just for portables, Jason. $1336 for desktops, for an average of $1278. Probably only significant to 2.5 figures or so,
1:53 p.m. PT - JS: (I said laptops, MacJournals.. .:-) )
1:53 p.m. PT - MD/MJ: But if you pay $1000 for a Mac, Apple gets $1000 if you buy it from Apple or an Apple Store, but only about $820 if you buy it from a reseller, so using ASPs to predict *Mac* product mixes is a fool's errand.
1:54 p.m. PT - MD/MJ: (this is Matt, btw; we just use the publication name so all the credit and searching is right :-) )
Comment by GadgetDon: I know iPad sales won't show up yet, but will they be listed as laptop sales, iPod sales, or iPhone sales?
1:55 p.m. PT - JS: My guess is that Apple will add an iPad category next quarter, though it's possible they could roll it in to another category. Probably not.
1:56 p.m. PT - MD/MJ: "Other Music Products" revenue (iTunes Store, caes, accessories) was up 14% sequentially, 27% year-over-year. Perhaps loading up new iPods?
1:56 p.m. PT - MD/MJ: Historically, Apple will wait to break out iPad sales until they are a significant percentage of revenue (2% or 5% or something like that), and until then they'll be "other."
1:57 p.m. PT - JS: So, iPhone sales in year-ago quarter were 3.8M. Since then: 5.2, 7.4, 8.7, 8.75.
Comment by John Welch: they'd almost have to add the iPad as a separate category.
Comment by alexbrooks: Wow, AAPL just jumped 19%!
Comment by biggsjm: What's the % of Revenue for each of the three legs of their business? iPod/iPhone, Computers, Music Sales? Mac revenue was 3.3 Billion of $13 Billion?
1:58 p.m. PT - JS: 28 percent Mac, 14 percent iPod, 40 percent iPhone.
1:58 p.m. PT - JS: Mac has been 28 or 29 percent each of the last three quarters.
Comment by John Welch: i understand why they don't, but i really wish Apple broke out their products more, although i doubt Xserve sales are anything to crow about. The Xserve is almost as much a hobby product as the AppleTV
Comment by jscarlton: Where are the ASP numbers that MacJournals are reporting?
1:59 p.m. PT - JS: @jscarlton: You have to do the math, it's taking total sales and dividing by revenue
1:59 p.m. PT - JS: So the average desktop was $1336, and laptop was $1241.
Comment by biggsjm: Thanks, Jason . . .and I thought AT&T was dependent upon the iPhone! ;)
Comment by moshmutant: watching a liveblog for an earnings call. what's wrong with me? and for that matter, what's wrong with all of you?
Comment by chockenberry: Say Apple sold 500,000 iPads at an ASP of $600. That's $300M of revenue. Which category did it get filed under?
1:59 p.m. PT - MD/MJ: We have a spreadsheet set up for it. It took extra time because we can't use year-ago numbers for comparison; Apple restated all those numbers to eliminate subscription accounting.
2:00 p.m. PT - JS: CHOCKLOCK: I imagine all iPad revenue was deferred until the products shipped, which was April 3 (not in this financial quarter)
Comment by GlennF: Demand|media doesn't use Twitter OAUTH for authentication. Requires Twitter password. Booo.
2:00 p.m. PT - MD/MJ: Since "Other Music" includes App Store revenues (all iTunes Store revenues), that could be part of it too
Comment by besologic: is app store revenue included in the iphone numbers?
2:00 p.m. PT - JS: @besologic: No, it's in Software and Services, I believe.
Comment by John Welch: The other number i'd love to see that they'll never break out are enterprise support agreements. It'd be small overall, but i'm always curious as to how much they really make from them
Comment by chockenberry: @jsnell Oh duh.
Comment by jscarlton: Couldn't find the data...just found it here.
2:01 p.m. PT - JS: You can read our news story about this here.
2:01 p.m. PT - MD/MJ: I don't _think_ they break out App Store revenue from iTunes Store, Jason. I'm willing to be wrong.
2:01 p.m. PT - DM: Here we go.
2:02 p.m. PT - MD/MJ: The call starts shortly; we'll be doing more comments at the @macworld live blog with just more breaking news here.
2:02 p.m. PT - DM: We've got Nancy Paxton for opening remarks. We'll have Peter Oppenheimer and Tim Cook.
Comment by John Welch: It'l be interesting to see how much of a bump portables see next year from the new models.
2:02 p.m. PT - DM: As usual, forward-looking statements may vary (no word on flash-forward-looking statements).
2:02 p.m. PT - MD/MJ: (you can stop live-feeding our tweets now, hehe)
2:03 p.m. PT - DM: And we're over to Peter for intro remarks.
2:03 p.m. PT - JS: New record for Mac sales in March quarter.
2:03 p.m. PT - DM: Outstanding March quarter results that exceeded expectations. Best non-holiday quarter revenue and earnings ever, best iPhone sales ever, new Mac sales in March record.
2:03 p.m. PT - MD/MJ: CNBC talking head (via closed captioning): "It's over for the Mac." (Think he means iPhone/iPad is the future.)
2:04 p.m. PT - DM: Very strong performance was due primarily to more than doubling in iPhone sales and strong momentum of Mac products.
2:04 p.m. PT - DM: Slower sequential decline than usual.
2:04 p.m. PT - DM: Operation margin was $4 billion. Net income was $3.1 billion, up 90% over year ago quarter. $3.33 eps.
2:04 p.m. PT - DM: Mac: Record March quarter sales of 2.94 million Macs. 33% year over year growth, compared to 24% growth for market overall during March quarter. Very pleased with Mac growth in all segments.
2:05 p.m. PT - JS: 30 percent growth year over year versus 24 percent IDC estimate
2:05 p.m. PT - DM: Updated MacBook Pro announced last week with faster processors and longer battery life. Between 3-4 weeks of Mac channel inventory.
2:05 p.m. PT - DM: In music, sold 10.9 million iPods, about equal to 11 million in year ago quarter. iPod touch units grew 63% year over year.
Comment by John Welch: sigh...yes, because a vibrant, growing product is something you want to kill.
2:05 p.m. PT - JS: unreal that they sold almost the same # of iPods in this quarter as in the year-ago quarter
2:05 p.m. PT - DM: Overall iPod revenue growth of 12%.
2:05 p.m. PT - MD/MJ: And with no promotions, Jason
Comment by John Welch: iPod sales not going down is really quite amazing.
2:06 p.m. PT - DM: iPod was also top-selling MP3 player and continues to gain share internationally and in Australia, U.K., Canada, and Japan.
2:06 p.m. PT - DM: $1.1 billion in sales from iTunes Store.
2:06 p.m. PT - DM: In February crossed the 10 billion mark for songs purchased and downloaded. More than 185,000 apps in App Store and over 4 billion downloads to date.
2:06 p.m. PT - JS: Sorry, year-ago quarter, not holiday quarter. But still.
2:06 p.m. PT - DM: Very excited to have launched iBookstore and over 3500 new apps for iPad.
2:07 p.m. PT - MD/MJ: I find it interesting that Apple is now keeping only 3-4 weeks' worth of Mac units in the channel. It was 4-6 weeks' worth for a very long time, and is still there for iPods.
2:07 p.m. PT - DM: 8.75 million iPhones in quarter, exceeding record set in most recent holiday quarter.131% year over year growth. More than 3x IDC's estimate for smartphone market overall in quarter.
2:07 p.m. PT - JS: "This represents 131% year over year growth, and is more than 3 times IDC's estimate of 41% growth of smartphone market overall."
2:07 p.m. PT - DM: Recognized revenue was $5.45 billino during quarter.
2:07 p.m. PT - DM: Continued to expand iPhone's reach in both carriers in country with 151 carriers in 88 countries.
Comment by biggsjm: @MacJournals . . . agreed. Jobs will pair down the Mac offerings (starting with the AIR) and slowly push consumer users to an iPad / iPhone like device. Keeping the pro offerings for media professionals.
Comment by Stuart McCann: Does Apple provide GAPP and Non-GAPP figures still?
2:08 p.m. PT - JS: Stuart, it's all GAAP now. No crazy subscription accounting.
2:08 p.m. PT - DM: Also very pleased that customers ranked iPhone first in J.D. Powers wireless smartphone customer satisfaction survey.
2:08 p.m. PT - DM: Very excited about iPhone OS 4 this summer. Developer response very positive.
Comment by John Welch: I can't wait to see how the highlander crowd will spin this to prove the Android/iPhone/Blackberry will utterly destroy the Android/iPhone/Blackberry