Tim Cook WWDC 2015

Apple earnings day is here at last. Catch up on the company’s latest results here while we await the quarterly conference call between Tim Cook, Luca Maestri and analysts. In summary, Apple reporting earnings $10.7 billion in profit from $49 billion in revenue after 47 million iPhone sales, 10.9 million iPad sales, and 4.7 million Mac sales during the company’s Q3 period. Analysts will likely push Tim Cook and company on sharing more information around Apple Watch sales during the call. The quarter covers the April to June period which includes Apple Watch sales in a number of countries from April 24th and on. Apple’s conference call kicks off at 2 p.m. PT/5 p.m. ET so stay tuned for our live coverage below:

– You can tune in to the conference call online here

– Hold music is chugging away as we await the call to begin at the top of the hour

– Seven minute warning form the operator

Kicking off now!

– Tim Cook recapping record quarter results

– Faster growth rate in 3 years

– Says topped internal expectations for iPhone, iPad, Mac, and Watch

– iPhone experienced highest switcher rate from Android Apple has ever measured

– 112% revenue growth in Greater China

– Services more than $5 billion per quarter

– App Store revenue more than doubling during quarter

– Cook says Watch demand was higher than supply, leading to delay in retail launch, inventory progress over the quarter with supply catching up to demand in past few days

– Apple says 94% of Apple Watch users wear and use it everyday, social apps including Twitter, Line, and WeChat very popular on platform

– Cook says Apple excited about News app for iOS 9, says 25 leading publishes including CNN and NYT signed on to support it

– Over 15,000 artists are signed up for Connect in Apple Music, says millions tuning into Beats 1 station

– Cook says 700 universities and colleges will begin accepting Apple Pay this year including his Auburn where he graduated

– 1.5 million US locations set to accept it by end of 2015

– American Express will support Apple Pay on corporate cards next month

– CFO Luca Maestri now reviewing quarter results

– Notably, Maestri says Apple does not participate in low end tablet market (recently retired iPad mini 1)

– Maestri says IBM partnership should yield 100 apps by end of 2015

– Apple Watch more than offset decline of iPod and accessory sales over 100% of growth from Other category

– 456 Apple Stores globally, 190 outside US, 40 stores to open in China next year

– Opening call for questions next…

– Katie Huberty (Morgan Stanley) Channel inventory down substantially, why? Cook describing inventory response to demand and growth in key markets, says 73% of user based hasn’t upgraded to 6 or 6 Plus yet so opportunity there

– Huberty asks about longer term for iPhone. Cook focusing on next quarter only but says big picture is good based on customer satisfaction and Android switcher rate, says smartphone market growth over next 5 years is incredible as IDC predicts growth from 1.3 b to 1.9 b

– Bill Shope (Goldman Sachs) asks about gross range margin, Maestri says foreign exchange continues to be challenging, Shope asks about mixed dynamic on iPhone sales, Maestri says average selling price up $99 thanks to iPhone 6 Plus price point in lineup, $99 partially offset by foreign exchange, growth rate in China is strong and 6 Plus screen size performs well in this market

– Gene Munster (Piper Jaffray): Asks about gross margin trends and outlook plus comment on Watch category and investor interest… Maestri says currency market and other factors out of Apple’s control present issues. Cook discussing Watch and not disclosing shipments on the Watch to avoid giving competition insight. Says Watch revenue isn’t represented by year over year change as other products decline. Says 8500 apps on Apple Watch. Says Apple will increase sales channel before the holiday period.

– Toni Sacconagh (Sanford Bernstein): Asking about iPhone marketshare and specific price points. Cook says Apple expanding and growing in specific markets like China and India. Says people will spend more on that product if it’s done right.

– Jim Suva (Citi): Asks about competition challenge on iPhone and if more peripheral services like Apple Pay and Apple Watch will be introduced to push business. Cook says peripherals are important to iPhone business and software features like iOS 9 for iPad will continue to grow that business.

– Steve Milunovich (UBS): Asks how stock market volatility in Chinese stock market can impact Apple. Cook says stock ownership is narrow in China among families and worry is overstated. Milunovich mentions new iPhone ad campaign and targeting switchers. Cook says different geographies mean different things on growing the iPhone business: switching from Android, buying first smartphone, etc. Says ad campaigns focus on those needs.

Shannon Cross (Cross Research): Asks what change in price means for demand when product prices increase in certain markets. Maestri says value against US dollar requires raising prices as currencies shift. Cook says June sales on the Watch were higher than in April or May.

– Call is wrapping up for the quarter. The replay should hit iTunes as a podcast in a couple hours.

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About the Author

Zac Hall

Zac covers Apple news, hosts the 9to5Mac Happy Hour podcast, and created SpaceExplored.com.