Apple announced its fiscal first quarter financial results today after the markets closed. The company posted a profit of $1.58 billion on revenue of $9.6 billion, beating analysts estimates.
During the same quarter last year, Apple had posted profit of $1 billion (up 58%) and revenue of $7.1 billion (up 35%). Gross margin was 34.7 percent, up from 31.2 percent last year.
More than 2.319 million Macs, 22.121 million iPods and 2.315 million iPhones were sold during the quarter. Mac sales are up as much as 44% since last year while iPod's unit growth is 5%.
Guidance for next quarter is $6.8 billion of revenue and 94 cents per share of profit.
"We're thrilled to report our best quarter ever, with the highest revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks."
The results beat analysts' estimates of $9.5 billion revenue and $1.5 billion of profits but the stock was hit by weak outlook. Apple's shares were down 3.54% during the regular trading session and more than 10% during the after-hours session.
MacScoop will provide a live coverage of the conference call which will be webcasted at 2pm PT/5pm ET.
CONF CALL LIVE UPDATE
Peter O. provides summary of the numbers:
- $9.5 billion revenue, $1.58 billion profits, 34.7% gross margin,
- Over 22M iphones, 2.3M Macs, 2.3M iPhones
- Apple retail: $1.7B revenue
- Guidance : 6.8 billion / 0.94 cents per share
Q/A:
- Why guidance is so low: It's 29% up Vs last quarter, normal seasonality
- How does the Mac Pro segment? Performs very well
- iPhone expectations question : we remain confident in hitting the 10 million goal
- iPod touch question : the touch is off to a great start, it played great role in our year over year growth
- iPhone cannibalization? Not in Europe, we don't know for U.S.
- iPhone inventories question: we don't provide inventories numbers nor expectations
- Is the economic context factored in guidance?
- Share buy-back: we focus on a strong balance sheet for startegic investments/acquisitions
- Product pipeline: we're very confident on our strategy/products fantastic products available today, we're gaining share
- MacBook Air, incremental or cannibalizing? Too early to say
- iPod sales next quarter? Sequential decline in iPod sales expected
- Which factors could cause the iPod sales flattering? We have high share in the US and we continue to grow it, also growing on other countries, this quarter sales are consistent with what was expected for this quarter. The iPod touch becomes the first mainstream mobile platform. iPod revenue grew 17% year over year.
- Mac distribution: we ended quarter with 280 Best Buy stores selling Macs, over 600 selling points in the next six months
- Apple TV update, better sales expected? Break-even on the iTunes business with the focus on selling hardware.
- Ultra-portable market, a niche? Air is the superior combination of size/weight and performance at a very competitive price.
- Leopard expectations for this quarter? of to a great start, reviews and customer satisfaction/response off the charts, don't know if it can have the same trend it did. We're also shipong Leopard on every mac, it will contribute.
- Japan sales: We're extremely happy with what happens in Japan, reception for the Desktops (iMacs), market share up, iPods do well too.
- Question on Orange contract: Does apple take revenue share on unlocked iPhone's extra revenue?
- Vision between direct and indirect sales worldwide during the quarter? 46% vs 44 during yoy quarter
- Apple TV expectations? We don't project volumes, but we have a great product
- Retail stores traffic: quarter for the record books, 24% up yoy, most visitors have never had a Mac before
- Apple retail for 08? 35 to 40 stores in fiscal 2008, more international stores, including our first stores in China.
- Number of iPhones sold for unlocking : unsure how to reliably estimate the number, no precise estimate, we see that as an expression of very strong interest, in that way it's a good problem to have. It's significant.
- How is iPhone going in Europe: We're very happy with all of the launches so far?
- Is 3G important for Europe? We don't discuss new products, we're very confident with the 10 million goal for 2008.
- Supply channel question : nervous supply conditions, LCD close to supply demand balance
- Why desktops selling better? The iMac had enormous momentum, desktops up 53% yoy growth thanks to it
- iPhone seasonality? We've not yet been through to the march quarter with iPhones, we have no history to go by.
- Mac Distribution, how many selling points? 9500 stores selling Macs, up from 7700. Target-> doubling the number of best buy stores
- iPhone distribution? sells at Apple/ATT + EU carriers stores, nothing to announce on expansion of iPhone selling points.
- Education sale? Record Q1 for Apple on education
Call ends.