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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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Tim Cook

The upgrade sales of Snow Leopard, which we include the family in the box set were more than double what we experienced from Leopard over the same five-week initial sales period. And so, this doubling was much more than we had planned and was very pleasantly surprised by it.

Shannon Cross - Cross Research

Great. I guess the price cut worked. So, thank you.

Tim Cook

Yes, it did. Thank you.

Nancy Paxton

Thanks, Shannon. Could we have the next question, please?

Operator

From Credit Suisse, we''ll hear from Bill Shope.

Bill Shope - Credit Suisse

Okay, great. Thanks, guys. Last year, you provided some commentary around longer-term gross margin trends. Do you have any thoughts on this for fiscal 2010 or at least how we should think about this longer-term?

Peter Oppenheimer

Sure, Bill. I''ll give you some qualitative thoughts. For the December quarter, I guided to about 34%. I don''t want to make forecast today for future quarters on a quantitative basis, but I think there are two things that you ought to be aware of. First, for some key components, costs are rising and that''s visible to, to you. And second, we are continuing to focus on delivering state of the art products at price points that our competitors can''t match. And we are going to continue to provide ever increasing value to our customers.

Bill Shope - Credit Suisse

Okay, great. Thank you.

Nancy Paxton

Thanks, Bill. Could we have the next question, please?

Operator

We''ll hear from David Bailey with Goldman Sachs.
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