Apple has scheduled its third-quarter earnings report for Tuesday, July 24th at 2 pm PT. Apple CEO Tim Cook and CFO Peter Oppenheimer will announce Q3 earnings to investors and will take questions afterwards. As usual, the call will be streamed over Apple’s Investor Relations portal. During its earnings report last quarter, Apple projected Q3 revenues of around $34 billion, or around $5 billion less than the $39.2 billion in revenues it reported in Q2.
During the company’s earnings call on Tuesday, Apple CEO Tim Cook revealed that Apple TV is “doing extremely well.” The Cupertino-based company sold a record 1.4 million units in the December quarter, though Cook says the product is still just a hobby. “We still classify this as a hobby, but we continue to add things to it,” he said. “I couldn’t live without it. We think it’s a fantastic product and we continue to pull strings and see where we can take it.” Cook also revealed that the company’s iCloud service now has 85 million users. “We’re thrilled with iCloud and the response from customers has been incredible,” he said. “It was a fundamental shift, recognizing that people had numerous devices and wanted their content in the cloud. 85 million customers in three months; It’s not a product, it’s a strategy for the next decade.”
Apple reported its earnings for the first quarter of its 2011 fiscal year last night, posting revenue of nearly $27 billion on record sales. But as is often the case, much of the juicy stuff came from the question and answer session following the call, where analysts try their best to delve into areas not covered by Apple’s report or its press release. Apple fans who weren’t privy to the topics covered in the Q&A session will be happy to know that market watcher Seeking Alpha has issued a full transcription of the call from start to finish. Analysts didn’t manage to get any state secrets out of the crew from Cupertino, of course, but there were a few peaks among the valleys. Speaking of valleys, Piper Jaffray analyst Gene Munster even managed to work in a subtle question about Apple CEO Steve Jobs’ leave, wondering just how prepared the company is right now for the long haul. Spoiler alert: COO Tim Cook’s response was that Apple is magic. Seriously. Hit the read link for the full transcript. More →
Motorola announced its Q3 results on Thursday and while the seemingly imminent arrival of the Verizon iPhone weighs heavily on investors’ minds, Motorola managed to report its best quarter in some time. Sales in the third quarter were up 13% year over year to $4.9 billion and phone revenue came in at $2 billion, up 20% from the year prior. Motorola shipped 9.1 million cell phones in Q3, 3.8 million of which were smartphones. Smartphone shipments beat the Street’s estimates, which typically fell between 3.5 and 3.6 million. Motorola also stated that its total cash on hand rose to $9 billion. Motorola’s business relies heavily on its current deal with Verizon Wireless, where its DROID-branded smartphones are a central draw that Verizon spends big marketing dollars on. Should Verizon finally manage to launch a CDMA version of the Apple iPhone next year, which is looking increasingly likely, it could spell trouble for Moto. More →
Those curious as to whether or not we might actually see the often-rumored 7-inch iPad become a reality can rest assured that we have our answer: no. During a rare appearance on Apple’s Q4 earnings call Monday evening, Apple CEO Steve Jobs went on a no holds barred tirade that ran the gamut from ragging on RIM to gibing Google, and even to nudging Nokia. Amidst the stabs and jabs, Jobs quelled rumors that Apple would soon release a smaller version of its magical iPad. The pertinent point:
We’re not not making a 7-inch tablet because we don’t want to hit a lower price point; we just believe it’s too small to hit the user experience people want. When we make decisions, it’s not about cost, it’s about value when you factor in the software. We’re all about the best products at aggressive prices.
There you have it folks… there’s not much room for interpretation. According to Jobs, bigger is better and 7-inches just isn’t enough real estate to get the job done. On the other hand, Apple has reversed its stances countless times in recent history — most notably, perhaps, when it launched the App Store after Jobs had previously claimed native apps were unnecessary on the iPhone — so no one really knows what the future holds for Apple’s magical tablet.
Amongst all the financial details being discussed during Apple’s first quarter 2009 earnings conference call, acting CEO Tim Cook fielded questions on iPhone pricing, the netbook market and Apple’s ability to sustain its leadership in a crowded mobile phone market. First and foremost, Cook dismissed the idea of a low cost iPhone nano by stating,
“You know us, we’re not going to play in the low-end voice phone business. That’s not who we are. That’s not why we’re here. We’ll let somebody do that, our goal is not to be the unit share leader in the phone industry. It is to build the best phone.”
So it looks like those iPhone nano rumors could be just that, rumors – though some of his comments were certainly open to interpretation. Cook was also questioned about the future possibility of a Mac netbook. When asked about the sub-$500 netbook market, Cook responded,
“We’re watching that space, but right now from our point of view, the products in there are principally based on hardware that’s much less powerful than we think customers want, software technology that is not good, cramped keyboards, small displays. We don’t think people will be pleased with those products. It’s a category we watch, we’ve got some ideas here, but right now we think the products are inferior and will not provide an experience to customers they’re happy with.”
Those are some scathing comments about netbooks so we can apparently assume that a Mac netbook is definitely not in the works. Last but not least, Cook was asked about Apple’s ability to remain the market leader with the iPhone in light of increased competition from Android, Windows Mobile and the Palm Pre. Hit the jump to see what Apple has to say about its competition.