Here are five key quotes from Apple's conference call. They're taken from the Apple transcript which we published a few hours after the call ended:
1. Steve Job's health
Ben Reitzes - Lehman Brothers: ...a New York newspaper today obviously called into question some issues around Steve and obviously his health, and we get a lot of questions about it and I’m really sorry to ask, because it’s a very private matter, but would you mind addressing the situation and just making it so we can have your official statement? And I apologize in advance for having to ask the question. Peter Oppenheimer: Ben, Steve loves Apple. He serves as the CEO at the pleasure of Apple's board and has no plans to leave Apple. Steve’s health is a private matter.
2. Overall growth
...revenue growth of 38% was significantly above the 24% growth rate we achieved in last year’s June quarter and we continued to see healthy growth in all regions. Sales in our retail stores, most of which are in the U.S., were extremely strong, growing 58% year over year and store traffic was about 32 million, up 10 million from the year-ago quarter...
3. Market share gains
Macs... 41% year-over-year growth and is nearly three times the overall PC market rate of growth for the June quarter based on the latest estimate published by IDC... Mac desktop sales grew sharply at 49% year over year, driven by strong demand for iMac which we updated in April. Sales of portables were up 37% year over year... In the U.S. channels tracked and reported by NPD, Apple's share of total personal computers sold in the month of June increased to 19.5% this year from 15.4% last year...
We sold 11 million iPods, an increase of 12% from the year-ago quarter, with the growth being driven by Shuffle as well as the introduction of the iPod Touch last September... We were pleased with the iPod sales growth of 10% in the United States and 15% internationally. iPod revenue grew 7% year over year, less than the unit rate of growth, due to lower ASPs driven largely by the Shuffle price reduction taken in February. We’re happy with the demand elasticity that we’ve seen for the iPod Shuffle and think the tradeoff between ASP and units was a good one.
5. Disappointing guidance
For the quarter, we are targeting revenue of about $7.8 billion, or approximately 25% growth over the prior September quarter... We expect gross margin to be about 31.5%, reflecting approximately $23 million related to stock-based compensation expense, down from 34.8% in the June quarter. This sequential decline is expected due to three primary factors; first, the full quarter impact of the back-to-school promotion; second, a future product transition, which I can’t discuss today; and third, the one-time true-up of our contract manufacturer deferred margin that we realized in the June quarter... [Later in the Q&A] If iPhone sales were reported as revenue when sold, the September revenue guidance would be significantly higher.