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Earnings Calls: 
Apple First Quarter Earnings Call
Author: Rozalina Destanova
123jump.com
Last Update: 3:34 PM EST January 26 2008


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Apple’s revenue increased to $9.6 billion, beating expectations of $9.47 billion. The company sold 22.1 million iPods and 2.3 million Macintosh PCs. The company is pleased with the successful launch of Leopard on October 26th and the response from both customers and reviewers has been good. Total revenue recognized from sales of iPhone, iPhone accessories, and payments from carriers was $241 million. For Q2, the company estimates it will earn 94 cents a share on $6.8 billion in revenue.


Investors Question and Answers

 
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Sequential Earnings Growth | Quarterly Earnings by Year | Quarterly Earnings Growth by Year

Source: Company filings    Q1:December  Q2:March  Q3:June  Q4:September
 
Chris Whitmore (Deutsche Bank): How many retail outlets or distribution points was the Mac available during the quarter and do you have any targets for year-end?

Timothy D. Cook: We have moved the number of storefronts carrying Mac now up to 9,500 and that compares to 7,700 a year ago. We have done that because of the momentum that we see in the Macintosh business. We plan on doubling the number of Best Buy stores.

Chris Whitmore (Deutsche Bank): How many retail outlets are available within existing countries where the phone is available?

Timothy D. Cook: We have about 2,500 storefronts in Europe that carry iPhone between the U.K., France, and Germany, and we have around 2,000, 2,100 or so in the United States between our stores and the AT&T stores.

Andy Hargreaves (Pacific Crest Securities): Do you have any plans to do any new in-store displays on Apple TV or any other marketing to show what the product does, especially at third-party retailers?

Timothy D. Cook: This is something that we are looking at but have nothing specific to talk about today.

Andy Hargreaves (Pacific Crest Securities): Is there anything you are doing actively to try to promote more corporate use outside of the traditional customers in either your reseller channel or in education that you are doing?

Timothy D. Cook: The education market had a record first quarter for us. We grew about five times the IDC’s forecasted market rate of growth of 6%, and this was led by both K-12 and higher ed, and so we were doing excellent in this business. There are many examples of small business using Mac and larger businesses continue to be interested in the Macintosh as well.
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