Apple’s fourth quarter conference call took place this afternoon. Highlights from the call follow:
- Apple is still on track to open 25 retail stores this quarter; economic conditions are not affecting the company’s plans to open more retail stores this year. [17:18 ET]
- Japan region was the weakest for Apple geographically during the quarter, due to the country’s weak economy. After September 11, there was a slow-down globally, but particularly in the US. [17:17 ET]
- Apple remains “enthusiastic” about its product pipeline, with several exciting products planned for the next 12 months. Next Tuesday, Apple will be introducing a new digital device product. Apple is “very excited” about the product. [17:15 ET]
- Apple is being very cautious with its estimates; revenues for the December quarter are to come in at a minimum of $1.4 billion with earnings per share at a minimum of 10 cents. Apple expects retail stores will now post a small loss next quarter, rather than breaking even as originally expected (sales have declined slightly). Gross margins are expected to decline due to lower-margin consumer products, and lower average prices for its portable products. [17:14 ET]
- Balance sheet remains strong; $4.3 billion in cash and short-term investments. [17:10 ET]
- Eleven Apple retail stores are open now, with four more planned to open in October. Six hundred third-party titles are now available at the retail stores, to meet higher-than-expected third-party product demand. [17:09 ET]
- Effects of September 11 disrupted supply chain, caused channel inventory for September to fall below August level. Nevertheless, Apple was able to exit the quarter with four weeks of channel inventory, the same as at the end of the previous quarter. [17:08 ET]
- Fourty-three percent of Apple revenue was transacted through the online Apple Store, up from 40% in the previous quarter. [17:07 ET]
- Education sales were up 14 percent for the quarter, year over year. [17:06 ET]
- CFO Fred Anderson, “Apple very pleased.” Apple shipped 850,000 systems for the quarter, including 300,000 portable systems (of which 250,000 were iBooks). [17:05 ET]