By the numbers: a breakdown of Apple’s Q2 2014 earnings call

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Apple went over its Q2 2014 earnings today on its quarterly conference call with CEO Tim Cook and incoming CFO Luca Maestri. The company announced that former Burberry CEO Angela Ahrendts will finally be joining the executive team as SVP of Retail. Cook also addressed the recent debut of Microsoft’s Office productivity suite on the iPad.

But, as with any earnings call, the numbers that define Apple’s success or failure in the market took center stage. Here are some of the big ones you might have missed:

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Apple reports $45.6 billion revenue for Q2 2014: 43.7m iPhones, 16.3m iPads, 4.1m Macs, 2.7m iPods

130521141911-tim-cook-hero-tax-code-614xaApple just announced its second quarter results for 2014 with revenue for the quarter coming in at $45.6 billion. That’s compared to the guidance it previously provided of $42 – $44 billion and estimates by analysts averaging approximately $43.5B. Apple’s $45.6 billion in revenue reported today is also up from the $43.6 billion in revenue in the year ago quarter.

Break down of device sales for Q2 2014 include 43.7m million iPhones, 16.3 million iPads, and 4.1 million Macs. Compare that to an average of 38M iPhones, 19.3M iPads, 4M Macs, and 3M iPods predicted by the analysts leading up to today. In the same quarter last year, Apple sold 37.4 million iPhones, 19.5 million iPads, just under 4 million Macs, and 5.6 million iPods.

It also reported net quarterly profit of $10.2 billion, or $11.62 per diluted share in contrast to quarterly net profit of $9.5 billion, or $10.09 per diluted share in the same quarter last year.

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.”

Apple is providing guidance for its next quarter of revenue between $36 billion and $38 billion.

The question of the day for Tim Cook and other Apple executives on today’s call will surely be the new product categories that Cook previously said were coming across 2014 and have yet to make an appearance in the first quarter. With Apple’s WWDC developer conference just around the corner, we’ll have to wait and see if Cook gives us any clues of what’s to come during the call today at 2:00 p.m. PST/5:00 p.m. EST. Stay tuned to our live blog for coverage. 

Apple’s full press release is below: Read more

Apple to increase share buybacks to $90 billion, announces seven-to-one stock split, increase dividend to $3.29 per share

 

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As part of Apple’s earnings releases, Apple has announced an extension to its buyback plans. The company will now buyback an additional $30 billion of Apple stock, totalling $90 billion, significantly accelerating its original plans.

Apple® today announced that its Board of Directors has authorized another significant increase to the Company’s program to return capital to shareholders. The Company expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.

The board has also announced a seven-for-one stock split beginning June 2nd 2014. Apple last split its stock in 2005, nine years ago. Apple will also increase the dividend by about 8 percent to $3.29 per common share. This will begin on May 15th. Apple plans to increase its dividend every year. In an interview with the Wall Street Journal, Cook said that the buyback will “show you how much confidence we have in the future of the company”.

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Wall Street expecting Apple to report year-on-year revenue fall of 0.2 percent

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The consensus view of 40 analysts polled by Fortune is that Apple’s year-on-year revenue for its fiscal Q2 (Q1 of the calendar year) has fallen by 0.2 percent to $43.6B. This follows earlier predictions that iPhone sales will have grown two percent, and iPad sales will have dropped by 0.7 percent.

Most of our analysts (31 out to 40) are playing it safe, offering estimates within the range of Apple’s guidance — between $42 billion and $44 billion.

Seven think Apple will beat its revenue guidance — by half to three-quarters of a billion dollars, according to Merrill Lynch’s Scott Craig and the Braeburn Group’s Patrick Smellie, respectively. Two analysts — Credit Suisse’s Kulbinder Garcha and the Braeburn Group’s Sunil Shah — think Apple’s revenue may actually have fallen year over year …

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Auburn University video with Jeff Williams, Bob Iger profiles Tim Cook in honor of Lifetime Achievement award

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(Photo via Auburn University)

Following Apple CEO Tim Cook being honored with Auburn University’s College of Human Sciences Lifetime Achievement award last December, the university in Alabama from which Tim Cook graduated has shared a video profiling the Apple CEO and his impact at Auburn. While the video was first posted in March and surfaced today, it features commentary and interviews from other notable Apple figures including Jeff Williams, Senior VP of Operations, and Bob Iger, Disney CEO and Apple board member. Read more

Tim Cook calls on Congress to pass Employment Non-Discrimination Act

 

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Apple CEO Tim Cook took to Twitter on Friday to voice his position on a potential new law currently being considering by the United States Congress. “The House should mark the 50th anniversary of the Civil Rights Act by passing ENDA,” Cook tweeted while mentioning members of Congress in leadership positions from both political parties. Cook also tweeted the quote “We shall overcome” and said “Much done but much left to do.” 

The law to which Tim referred, known as the Employment Non-Discrimination Act, would prohibit companies with 15 or more employees from discriminating based on sexual orientation or gender. The Apple CEO has previously expressed this position in a Wall Street Journal opinion editorial published last November. The bill has since been passed by the Senate, but has struggled to make it through the House of Representatives.

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Everything to know about iOS 8 and OS X 10.10 (Roundup + New Details)

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While Apple only officially announced its 2014 Worldwide Developers Conference (WWDC) last week, we have been reporting all of the known information about what Apple plans to unveil at the event over the course of the past few months. Now that WWDC is official, we have compiled a roundup of everything we know about Apple’s next-generation iOS device and Mac operating systems below, and we’ve also included some new tidbits not found in our earlier reporting. You can find out what there is to know so far about iOS 8 and OS X 10.10 below:

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First Apple Store opens to public in Turkey

After a long build up, Apple’s first Eastern Europe/Asia Minor store opened up today in Istanbul at the Zorlu Center. As with some other flagship stores, it is mostly subterranean with a glass upward protrusion. This one has four large panes of glass covered by a white roof with a darker Apple logo surrounded by a fountain as pictured below.

zorlu_center_first_view_big Image via ifoAppleStore

Apple yesterday held a press event attended by one of the Apple Store leads Steve Cano. Tim Cook took to Twitter to announce the opening:

More images and videos below:

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Apple ranked well in Greenpeace’s ‘Green Internet’ report for its renewable energy efforts

As Business Insider points out, Apple’s renewable energy efforts have ranked it well on Greenpeace’s “Clicking Clean: How Companies are Creating the Green Internet” study. Apple scored an “A” rating in ‘energy transparency’, ‘renewable energy commitment & siting policy’, and ‘renewable energy deployment & advocacy’, while it scored a “B” in ‘energy efficiency & mitigation’. Facebook and Google both averaged well in the same categories, while Amazon, Microsoft, and Twitter all scored poor to dismal ratings in each category. Full report card below: Read more

Apple so rattled by ‘Next Big Thing’ ads, it almost changed ad agency, claims Samsung

Apple senior VP of marketing Phil Schiller was so concerned about Samsung’s Next Big Thing ad campaign, in which the company poked fun at Apple customers, that he emailed Tim Cook to suggest a change of ad agency to fight back – according to a claim by Samsung lawyer Jon Quinn.

The Verge reports that Quinn made the claim in his opening arguments in the patent trial in which Apple is accusing Samsung of violating five of its iOS-related patents.

Quinn says Schiller became “obsessed” with the campaign, writing CEO Tim Cook to suggest the company look into using another ad agency instead of its mainstay TBWA\CHIAT\DAY. That even led to Apple board discussions over the issue, Quinn added …

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Report: Apple considering iTunes Store for Android & on-demand streaming service

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According to a new report from Billboard, Apple is considering launching an iTunes Store app on the Android platform to combat declining music sales on the digital platform. The report also says that Apple execs are in talks with high level label executives to discuss debuting an on-demand streaming service.

Apple has opened exploratory talks with senior label executives about the possibility of launching an on-demand streaming service that would rival Spotify and Beats Music, according to three people familiar with the talks. Apple is also thinking about adding an iTunes App for Android phones, the Google rival that has been growing faster than the iPhone, these sources said.

The move to an on-demand streaming service could transform iTunes Radio from the Pandora-like radio model to the more robust on-demand model used by Spotify, Rdio, Beats Music, and others. Read more

Tim Cook calls Yukari Kane book Haunted Empire “nonsense”, says it fails to capture Apple or Jobs

Today marked the debut of former WSJ Apple reporter Yukari Iwatani Kane’s book “Haunted Empire: Apple After Steve Jobs” (review from this morning) and Tim Cook is not pleased.

The Apple CEO told CNBC the following:

This nonsense belongs with some of the other books I’ve read about Apple. It fails to capture Apple, Steve, or anyone else in the company. Apple has over 85,000 employees that come to work each day to do their best work, to create the world’s best products, to put their mark in the universe and leave it better than they found it. This has been the heart of Apple from day one and will remain at the heart for decades to come. I am very confident about our future.

Update: Re/Code’s telling of the email sent by Apple has an additional sentence:

“We’ve always had many doubters in our history,” he said in the e-mail. “They only make us stronger.”

Yukari Kane also responded to Re/Code:

“For Tim Cook to have such strong feelings about the book, it must have touched a nerve,” Kane said. “Even I was surprised by my conclusions, so I understand the sentiment. I’m happy to speak with him or anyone at Apple in public or private. My hope in writing this book was to be thought-provoking and to start a conversation which I’m glad it has.” Read more