On the company’s post-earnings conference call, Apple (AAPL) CFO Peter Oppenheimer said the company remains comfortable with its target of 10 million iPhones for calendar 2008.
The company expects gross margin in the June quarter to increase to 33% from 32.9% in the previous quarter. That reflects expectations of continued favorable component pricing.
Oppenheimer noted that revenue growth of 43% was more than twice the growth rate as last March. U.S. revenues grew 40% in the U.S., and 47% internationally. Retail store sales were up 74%.
Some other tidbits:
- Apple store visits of 33.7 million was up 57% year over year. 50% of CPU buyers in the stores were new to the Mac. Education unit growth was up 35% year over year, the highest in the last eight year.
- Macs were 59% of revenues. That is 3.5X the recent IDC estimate of PC sector growth. Recent quarters had been 2-3x the PC growth rate.
- Desktops up 37%; portables up 61%.
- Mac channel inventory is 3-4 weeks.
- Expected iPhone to decline more on a sequential basis than it did, creating stock outs; channel and store inventories currently low. More phones being bought with intention of unlocking, which “remains a significant number,” according to COO Tim Cook.
- U.S. MP3 revenue is 73%. Over 85% share of legally purchased downloaded music.
- iPod channel inventory 4-6 weeks.
- Deferred revenue now $1.93 billion, up from $1.44 billion at end of December.
- Over 200,000 iPhone SDK kit downloads.
- Will open 45 stores in 2008.
- Tax rate in the quarter was 29%, below expected 32%, due to higher mix of foreign income. Will be 31% in second half.
- Delaying start of revenue recognition of the iPhone for phones sold since the March 6 SDK launch event, announcing specific new features in iPhone 2.0 software. Will start resumption of recognition of revenue for those phones sold after March 6 on shipment of 2.0 software. Does not effect carrier payments, or phones sold after March 6, until the phone is delivered.
- On the economy: Oppenheimer says the company will leave economic commentary to others.
- iPhone 2.0 software to be delivered in late June.
- Mac channel inventory increased by about 60,000 in the March quarter.
- See sequential decrease in iPod sales in June quarter, and full quarter impact of Shuffle price cut, and international price cuts taken in February.
- No investments in auction-rate securities.
- No comment on what it will do with its big pile of cash.
- No comment on 3G iPhone launch, or whether 2.5G phone will still be sold after new product launches. (Cook would not even confirm that there IS a new iPhone coming.)
- No comment on the P.A. Semi acquisition.
Apple stock took an after-hours hit but rebounded to just below closing price by 6:10 p.m.
