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Apple Inc Q4 2009 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 5:26 PM ET October 20 2009


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Apple Inc fourth quarter sales rose 25% to $9.87 billion and net income rose 46.5% to $1.67 billion or $1.82 a share.

 
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Thanks very much. Tim, what are your thoughts in the holiday season given the increased and competitive intensity against iPhone? There's a lot of obviously wannabes that are coming to market in that season, specifically Android and many are now offering touch screens and richer browser like in media and App Stores and are being given carrier support. How do you think about maintaining your momentum and differentiation amidst that kind of environment?

Tim Cook

Well, Mike, we feel great about how we ended the fiscal year with selling 7.4 million, as Peter talked about in the preamble. And that put us over 20 million, almost 21 million for the fiscal year, which was up 78% from before. And so, we have significant momentum. Also, when you look at the ecosystem that we've got with iTunes and the App Store, the App Store having over 85,000 Apps, which is a country mile more than anyone else, plus the very strong product pipeline that we have, we feel very, very good about suiting up and competing against anyone. Go ahead.

Mike Abramsky - RBC Capital Markets

No, you go ahead.

Tim Cook

Frankly, I think that, that people are really just trying to catch up with the first iPhone that was announced two years ago, and we've long since moved beyond that.

Mike Abramsky - RBC Capital Markets

Were you pleasantly surprised at the sort of mix of 3GS versus 99 and did that kind of, what did that tell you perhaps about the value proposition of Apple and how that drives kind of iPhone going forward?

Tim Cook

As I indicated before, the 3GS, the demand for the 3GS did exceed our expectation and we quickly changed our orders and for components, et cetera that, are different between the models. I think it shows that there's an intense appetite for Apple's latest technology and we were very pleased with the results.

Mike Abramsky - RBC Capital Markets

Okay, thanks, Tim.

Nancy Paxton

Thank you, Mike. Could we have the next question, please?

Operator

We will hear with Shannon Cross with Cross Research.

Shannon Cross - Cross Research

Hi, thank you. Could you talk a bit about the Mac business, the channel inventory levels, what the mix has been now that you've had a couple of, you know, a few months since the refresh of your lineup on the portable side?

Tim Cook
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