Apple has announced their Q2 2010 financial results, including sales of 8.75 million iPhones, 10.89 million iPods, and $13.50 billion in revenue. We’re now listening in to their conference call and updating any particularly relevant iPhone, iPod touch, and iPad news below:

• Call beginning. Tim Cook and Peter Oppenheimer (Apple COO and CFO are there). No Steve Jobs (CEO)
• Best non-holiday quarter ever (again)
• Highest iPhone sales quarter ever. (wow).
• Almost 3 million Macs. Starting with those. We’ll take a nap until iPhone comes up…
• iPod touch sales 63% year to year. Strong performance. Strongest growth rate in a while. Still over 70% share.
• iTunes sales 1.1 billion, strong on music, video, apps.
• 185,000 apps, over 4 billion downloads
• iPhone grows more than 3x more than smartphone estimates over all.
• Best quarter ever for iPhone (wow repeat).
• 151 carriers in 88 countries.
• IPhone again ranked first in JD Powers.
• iPhone OS 4 this summer, developers thrilled.
• iPad 3G on track to ship April 30 US, end of May international
• Apple Retail up again as well.
• (Retail results remind us why Apple doesn’t need tradeshows anymore).
• Strong iPhone and accessory mix contributed to results.
• Over $40 billion in the bank now, up over $1 billion. Still keeping it in the bank.
• (Going over numbers, we’re waiting for the Q&A…)
• Next quarter will include iPad revenue.
• Q&A time!
• What impact has the iPad had on the Mac? Any cannibalization? Cook: No obvious impact last quarter on Mac or iPod. iPad sales have exceeded expectations.
• March step down due to iPad anticipation? Cook: [Not really.]
• Any word on mix of iPad Wifi vs. 3G sales? Cook: Too early.
• Low guidance for next quarter result of product change for iPhone (sneaky!): Oppenheimer: [long list of factors] Not much experience on seasonality of iPhone yet. Will report in July. iPad, thrilled… [yada yada boilerplate....]
• Why was iPhone so strong? International? Cook: Inventory was flat. Staggering growth rates Asia Pac (474%), Japan (183%), Europe (133%). Added 8 carriers in key countries, Vodafone in UK, Ireland. Existing carriers strong. Greater China (PRC, HK, Taiwan) up year over year, 800 more points of distribution. 1st half 2010 revenue was $1.3 billion up 200%.
• App Store and higher priced iPad apps? Oppenheimer: thrilled, [yada yada boilerplate]. 3500 iPad apps.
• Production demand? Can produce, can ramp up? Cook: no production problem per se. Demand stronger than predicted. Had to push out international launch to get iPad 3G out in US. We’ll see. Level of demand has shocked Apple.
• iAd is profit or break even like App Store? Oppenheimer: putting toes in water, learning, building foundation.
• AT&T network improvement plan? Cook: looking forward to continued improvement.
• How much of growth came from new carriers? Cook: don’t break that out but important.
• Exclusive carrier thinking? How important is availability to any carrier in any country? Cook: 3 main countries with contractual exclusive US, Germany, Spain. Others have smaller, co-exclusive. Over last year, moved some from exclusive to non, in each case sales of increased and so has market share, but doesn’t mean that’ll be the same everywhere. Think carefully everywhere, what’s in Apple’s best interest.
• iPad has dramatically lower margins than company average? Cook: don’t give out specific product margins, but priced iPad aggressively to deliver value. Thinks market size for iPad is very large, want to capitalize on first mover advantage. Good track record of riding out cost curves. That’s been their experience.
• iPad subscription accounting like iPhone or regular like iPod? Oppenheimer: Will discuss that in July quarter when they discuss iPad revenue.
• New hardware, new products, iPhone OS 4, new distribution, great marketing
• Apple is more aggressive in protecting patents, legal expenses? Oppenheimer: factored into guidance.
• International carriers 75% for last quarter? Learned anything about international market ramp-up? Cook: Smartphone market is great market to be in, high growth rate, iPhone outgrew market by 3x, even better outside US. Won’t say anymore, doesn’t want anyone to copy (zing!)
• Apple TV, any update? Cook: up 34% year-over-year, still small, still a hobby. Market is much smaller than PC, smartphone, MP3 player. Those are enormous. Apple TV is not in a market that large yet. However, they love product, use it, think something’s there.
• iAd could be source of significant incremental earnings? Oppenheimer: toes in the water, don’t expect much this calendar year, learning for future.
• Will iPad cannibalize iPod touch or competing netbooks? Cook: nothing obvious in iPod or Mac numbers to suggest cannibalization but hadn’t started selling yet so don’t know yet. Can’t answer netbook, to Cook its not brainer, 100 to 0, can’t think of a single thing netbook does well. Cook addicted, couldn’t live without it.
• Why is iPad independent market? Why will Apple outpace other tablets, ebook readers? Cook: Steve positioned it extremely well, between notebook and smartphone. His personal use, variety of things he’d put on that list. Email, browsing, music, videos, tv shows, reading books, list goes on. App Store, ecosystem, games, large canvas, serious apps, less serious apps. More room to do cool things. Is new category. Early but really like what they see. Had high hopes, exceeded those.
• With low end $99 iPhone, can Apple influence carriers on plan costs, TCO? Cook: do everything that they can to try and get best deal possible for consumer. iPhone 3GS mix was high, and that starts at $199. Price is important but people also want innovative product, apps, os, ecosystem, incredible hardware.
• iPad attach rates for accessories relative to iPhone, iPod? Oppenheimer: accessory portfolio is good for us, 5000 accessories for iPhone, iPod largely work for iPad. Apple has some great ones. Developers rallying as well. Give it a little time.
• [discussing Apple Store growth]
• iPad will be reported similar to iPhone, line item on data summary. Revenue will be reported for unit and for accessories, also similar to iPhone.
• iPad apps being bought differently than iPhone? Oppenheimer: very early days. Getting apps, getting books, great thing. Will talk more in future. Not focused on making a lot of money on App Store, run a bit over break even.
• iPhone halo in Europe? Oppenheimer: Don’t break it down.
• iPhone is sales value in quarter of sale, no carrier payments, accessories, etc.
• iPad bringing any new kinds of customers to Apple? Cook: too small a time, not something that could be read into.
• Other extraordinary products in pipeline, new or updates? Oppenheimer: won’t help competitors by answering.
• That’s it folks, thanks!

Apple has posted their Q2 2010 financial results and once again its the best non-holiday quarter even, including $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share. iPhone sales were 8.75 million (up 131%) and iPod sales of 10.89 million (down 1%). Says CEO Steve Jobs:

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent. We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

We’ll be listening in to their conference call and providing our usual special brand of TiPb commentary, so join us over in that post for more.

Apple’s exclusive US iPhone carrier, AT&T has announced their Q2 2009 financials, and when it comes to the iPhone, more is… well, more.

• 2.4 million iPhones activated during the quarter
• (Apple sold 5.2 million, so that obviously doesn’t include international or as-yet unactivated iPhones).
• 1.4 million new customers.
• 3.4 billion (with a b!) in data revenue.

The downside? AT&T had to swallow those iPhone subsidies up front, leading in part to a 15% fall year over year:

“Increased operating expenses in the second quarter of 2009, in part, reflect volume-based acquisition costs associated with the success of the iPhone 3GS launch, which started June 19. AT&T’s iPhone customer characteristics are attractive, with (average revenue per user) significantly higher than and churn rates well below the company’s postpaid averages; as a result, robust iPhone demand drives strong recurring revenues and substantial long-term value. AT&T iPhone subscribers, both new customers and upgrades, take two-year contracts with data packages. As a result, robust iPhone demand drives strong recurring revenues and substantial long-term value.”

Translation: It cost them a few hundred bucks per user now, but those users are giving them back a hundred bucks a month for the next 24 months. Do. The. Math.

The big picture remains, however, that AT&T needs the iPhone to keep customers, get new customers, and earn big money off those high value customers.

[via Apple Insider]

UPDATING ON LIVE CONFERENCE CALL:

• Waiting for call to start, any minute now. Will post updates only when major iPhone-ish news is announced (or inner fanboy takes over).
• Covering Macs
• iPod touch growth, customers embrace superior features and apps.
• US market share for MP3 players 70%, gaining share in most international markets
• UK, France, Germany, Japan, Australia, China, growing.
• iTunes store had good quarter.
• DRM free now all 4 major labels and indies.
• App Store unparalleled succes.
• 35,000 apps, +20,000 since last call
• Almost at 1 billion downloads

More after the break!

• App Store key differentiator
• Still believe they are years ahead of competition.
• iPhone sold 3.8 million, 123% increase from a year ago
• iPhone reach now in 81 countries
• iPhone 3.0 and SDK being covered, highlighting features…
• (We’ve already done our massive coverage)
• Delaying recognition of revenue on all iPhones sold since March 17 delayed until 3.0 is released this summer. Prior sales not effected.
• Covering Apple Stores
• Margins 36%, driven by commodity costs being lower, sales of higher margin products like software and accessories, lower freight costs
• Cash for short term is 28.9 billion (!)
• Going to conserve capital
• Covering projections for next quarter…
• Predicting 7.7 – 7.9 billion (includes delay in iPhone revenue recognition)
• Can’t wait to get iPhone 3.0 into customer’s hands this summer. (er… and other stuff )
• (Giving iPhone the most love?)
• Q&A now beginning…
• Talking component prices, NAND memory prices might be going up…
• Bank of Montreal in the house! Asking about cash flow being down… snore.
• Talking about sales of desktops, laptops…
• Cook: For Apple is about doing great products, Netbooks are cramped, junky, small, not a consumer experience and not something they would put the Mac brand on. Not interested in it, don’t think long-term customers are interested either. Watching space, however.
• Customers looking for netbooks might want to look at iPhone, iPod touch
• If Apple can find innovative product that makes contribution, they have some ideas, pipeline looks fantastic.
• Netbooks – stretch to call them computers — are propping up unit sales for others.
• App Store mix between paid and free, between iPhone and iPod touch? Apple doesn’t disclose.
• Key growth to iPod this quarter despite economics, iPod touch more than doubled year over year.
• iPhone + iPod touch now 37 million units
• Tim Cook: we’re not economists (!)
• Question: Survey says #1 reason people don’t buy iPhone
• Cook: AT&T good partner, #1 carrier, very happy to do business with them. Have put full weight behind iPhone. No plan to change it.
• Cook: Verizon is on CDMA, chose from beginning of iPhone to focus on one phone for world, which means GSM route. CDMA has no life to it after a point in time.
• Cook: No iPhone in China yet, would like to be in next year. Nothing to announce today.
• Steve Jobs?
• Oppenheimer: Look forward to Steve returning at the end of June.
• Talking Mac, desktop, “things I can’t talk about” in pipeline. Years ahead, leader in space. Won’t leave price umbrella.
• Talking about currency values now. Snore.
• iTunes upgrades of music to DRM free? Oppenheimer: too soon to tell.
• Very strong growth in music, video, apps
• Walmart for iPhone?
• Cook: Strong partner for iPod, expanded for iPhone. Believe they provide extended reach into areas not hitting before. Pleased with results so far, but early going and not much to report.
• iPhone now being sold in almost 50,000 storefronts in 81 countries. Sizable presence and space.
• Channel inventory, 1.57 million units in inventory last quarter. Apple very conservative in count. 100,000 demos in 50,000 storesfronts, count units in transit from factory not yet for sale. 100,000 units last quarter. Also count inventory all the way to storefront.
• First June quarter with worldwide spread. Saw channel inventory in countries they were in at beginning of Dec. quarter fell at beginning, new countries added net at 80,000. Now 1.83 million units.
• Net net, Apple very comfortable with inventory, people want more.
• What steps Apple taking to ensure iPhone apps can be discovered, different from music discovery?
• Oppenheimer: We include easy to find top 50, 100, paid/free. Expanding genres. Team has done fantastic job making apps easy, fun to discover.
• Any unusual patterns in app sales vs. music?
• Oppenheimer: Hitting 1 billion in 9 months, customers having fun. Games are quite popular. 1 reason why iPod touch has been success.
• Palm Pre?
• Cook: difficult to comment on products not shipping, can’t talk intelligently.
• iPhone sold 21 million, highest satisfaction. Years ahead. Look at business through software platform lens. Benefits Apple and customers. Games to serious medical apps. Power of device and ecosystem is enormous, Apple just scratching surface.
• Talking about margins, education buying season.
• (Free iPod touches with Mac purchase for education again this year?)
• Protecting IP (Palm Pre?!) haven’t seen anything yet? Patent position or waiting for shipment?
• Cook: Think iPhone innovation leading industry by years, competition is great… as long as other companies invent their own stuff.
• That’s it, we’re done!

UPDATE ON RESULTS: Apple has published their results:

• The Company sold 11.01 million iPods during the quarter, representing three percent unit growth over the year-ago quarter.
• Quarterly iPhone units sold were 3.79 million representing 123 percent unit growth over the year-ago quarter.

Apple doesn’t break out iPod touch numbers, but last month during the iPhone OS 3.0 event, Apple did say 30 million iPhone OS units were sold, with 17 million being iPhone, leaving 13 million iPod touches on the market… and likely growing.

Original article after the break..

Apple will be reporting their Q2, 2009 financial results today at 5pm EDT/2pm PDT. While often tedious and filled with legally necessitated boilerplate responses, Apple typically discloses iPhone sales figures, App Store numbers, and other related metrics. TiPb likely won’t live-blog the call (which you can listen to via Apple.com if you really want to), but we will update this post any and all iPhone news, especially if we get some rumbling like last quarter‘s veiled legal threats against the Palm Pre…

Remember, it’s all about the profits. Check back later this afternoon/tonight for the updates!

Exclusive US iPhone 3G carrier AT&T announced their Q2 results yesterday, and during their conference call informed us of this staggering little factoid:

[S]ales of Apple’s iPhone 3G during the first twelve days were nearly double that of last year, this despite shortages that have seen backorders stretch one to three weeks at its retail stores.

We already knew Apple had sold 1,000,000 of their second-generation handsets in just 3 days (almost 25 times faster than the original iPhone 2G), but that was (I assume) a global number covering the 22 launch countries (and may have included units in partner channels). This quantity — while ironically not quantified — is US specific, and is impressive given that some pundits felt the all-important early adapters already had iPhones, and would get 2.0 for free, and so would likely have less incentive to upgrade. Maybe, maybe not. The $199 cost-of-entry could have triggered an even bigger flood of first time buyers who had balked at the previous price point.

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