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Earnings Calls: 
Apple Fourth Quarter Earnings Call
Author: Albena Toncheva
123jump.com
Last Update: 8:06 AM EST December 17 2007


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Driven by record Mac sales and continued strong demand for iPods, Apple reported revenue of $6.22 billion as against $4.84 billion in previous year. The maker of personal computers, portable digital music players and mobile devices the firm shipped 2.16 million Macs, 400,000 above the sequential quarter’s all-time record. For Q1 of 2008, the firm expects to generate EPS of about $1.42, including an anticipated 7 cents per share related to stock-based compensation.


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Mike Abramsky (RBC Capital Markets): You talked about the iPods shipping to Windows and that being a big driver obviously of Mac. In Europe, are you expecting a similar halo effect due to iPhone sales there helping other products further, like iPods and Macs?

Timothy D. Cook: We’re just launching in Europe on November 9th and we’ve got a lot to learn. However, our European business in the Mac area grew 47% year over year and this is over four times IDC projection of growth for Western Europe, and obviously there is substantial evidence to say that the iPod has helped us in Europe as well.

Keith Bachman (Bank of Montreal): The other segment in terms of unit growth had tremendous CPU unit growth, as did Europe. How do you think about expanding your channels in those categories, either on the direct side or the indirect side?

Timothy D. Cook: The other segment for us in particular is Asia-Pacific. It did grow 52% year over year. It is our fastest growing region, and we have added 2,000 store fronts to Mac distribution over the last year and we are continuing to asses quality partners and quality store fronts to continue increasing that.

Keith Bachman (Bank of Montreal): You’ve announced that you are going to do Asia-Pacific in terms of the iPhone. Do you think you can enter that market by having a 2.5G phone as opposed to a 3G phone?

Timothy D. Cook: We have nothing to announce today in terms of our entry into Asia other than to reaffirm our plans to enter in 2008.

Andy Hargreaves (Pacific Crest Securities): Can you give any qualitative or quantitative info on how much in sales each $100 rebate has brought back? What the percentage of those that have been redeemed are?

Peter Oppenheimer: Those are not details that we are going to get into. The customers have really appreciated the $100 credit that we’ve offered them and we expect most people to redeem by the end of the December quarter.
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