As we mentioned last month, Apple will today host its quarterly conference call to discuss its earnings report from the third quarter of its fiscal year: this includes 35.2 million iPhones, 13.2 million iPads, 2.9 million iPods, and 4.4 million Macs. Apple reported today that it earned $37.4 billion in revenue during its Q3 period.
Investors and analysts will surely focus on Apple’s new product plans for the remainder of this year, though, and we’ll be listening to bring you coverage starting at 5pm EST/ 2pm PST. Expand Expanding Close
Apple today announced its Q3 2014 earnings results, revealing that the company pulled in $37.4 billion in revenue and $7.7 billion in profit during the quarter.
Apple® today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.
Apple, as always, has also disclosed sales numbers for its main revenue generators. The company sold:
35.2 million iPhones
13.2 million iPads
4.4 million Macs
2.9 million iPods
Apple’s guidance for the quarter indicated revenue results between $36 and $38 billion, which Apple met.
Here’s Apple CEO Tim Cook on the results:
“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” said Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”
Apple has posted a note on its official Investor Relations website to indicate that it will be holding its Q3 2014 earnings results announcement and conference call on Tuesday, July 22nd. The call begins at 2PM PT/5PM ET, and Apple usually releases the numbers in the form of a press release around 1:30PM PT/ 4:30PM ET. This upcoming call will be the first under new CFO Luca Maestri, and he will likely be joined by Apple CEO Tim Cook on the call. We’ll have live coverage of the earnings results and notes of interest from the follow-up conference call.
In an SEC filing today, Apple announced that Luca Maestri has officially transitioned into the Chief Financial Officer and Senior Vice President role. His first official day on the job was yesterday, May 29th. Maestri is not yet on Apple’s executive biographies page, but an official profile will likely go live in the coming days. Apple says that Maestri’s previous job as Principle Accounting Officer will be folded into his CFO role.
Maestri, previously Corporate Controller and a Vice President at Apple, replaces long-time CFO Peter Oppenehimer. The transition was announced by Apple earlier this year. Oppenheimer will shift his remaining responsibilities to Maestri over the course of the next few months and completely retire from Apple at the end of September of this year. As part of his promotion, Maestri will now receive an annual salary of $1 million and new stock-based payment packages:
With Apple due to report its quarterly earnings on Wednesday, Fortune has been doing its usual analyst temperature-taking. The 37 analysts who have responded so far expect an average of $43.5B, toward the high end of the $42-44B Apple told the market to expect.
So what are our analysts expecting this week? No surprises, that’s for sure. The average revenue estimate of the 37 analysts we’ve heard from so far — 14 amateurs and 23 pros — is 43.5 billion, just above the midpoint of Oppenheimer’s range.
The amateurs, as usual, are a bit more bullish. They’re calling for earnings of $10.53 per share on sales of $43.66 billion. The pros are not far behind: earnings of $10.18 on sales of $43.42 billion …
Apple has announced that its CFO Peter Oppenheimer is leaving Apple for retirement in September this year. Luca Maestri, vice president of finance, will take over as CFO. The transition will begin in June to smooth the changeover from Oppenheimer to Maestri.
Oppenheimer has been at Apple since before Jobs returned in 1997, as a senior director. He became Senior Vice President and CFO in 2004. Yesterday, it was announced that Oppenheimer would join Goldman Sachs as a board member. Oppenheimer was the lead of the Apple Campus 2 project; whether Maestri will take over this responsibility is currently unclear.
Apple Chief Financial Officer Peter Oppenheimer has joined the Board of Directors of investment banking firm Goldman Sachs. Oppenheimer is an independent director for the company, and this has no effect on his current leadership position at Apple (update he just retired, oh well).
“Peter’s 25 years of broad experience across important industries will add a valuable perspective to our Board of Directors,” said Lloyd C. Blankfein, Chairman and CEO. “We appreciate his willingness to serve as a director and look forward to benefitting from his judgment and counsel.”
As an experienced CFO, Oppenheimer’s financial aptitude will likely be beneficial for the investment behemoth. “Oppenheimer will be a member of each of the firm’s Audit, Risk, Compensation and Corporate Governance, Nominating and Public Responsibilities committees,” according to Goldman Sachs…
<a href="https://twitter.com/setteBIT/status/439458564189335552">Image via SetteB.it</a>
This morning, Apple is holding its 2014 official shareholders meeting from its Infinite Loop campus in Cupertino, California. The proceedings are just beginning, and Apple executives are expected (per usual) to field questions from attending shareholders.
One of the orders of business at this meeting is voting to approve or reject both proposals from Apple’s management and shareholders. Bloomberg‘s Jon Erlichman reports that shareholders have rejected every proposal created by other shareholders while all proposals from Apple management have been approved…
As Apple opened down nearly 8% following yesterday’s earnings report from the previous quarter, activist investor Carl Icahn announced this morning his third $500 million purchase of Apple stock since the start of the month. Icahn has notably made a lot of noise being vocal toward Apple’s Board of Directors urging a larger buyback program for shareholders, something Apple’s Board has taken a position against, and today’s investment pegs Icahn’s ownership somewhere around $4.1 billion. Icahn’s recent purchases come ahead of Apple’s scheduled shareholder meeting on February 28, 2014. Expand Expanding Close
As we mentioned earlier this month, Apple is scheduled to hold a conference call to discuss its earnings and sales figures from the previous quarter it reported today: including 51 million iPhones, 26 million iPads, and 4.8 million Macs. The company also reported $57.6 billion in revenue for the previous quarter. We’ll be listening in on the conference call and updating you on key developments as they play out, so follow along at 5pm EST. Expand Expanding Close
As expected, Apple just announced its fiscal year 2014 first quarter results for the all-important holiday quarter. It’s Q3 report only included less than a month of sales for the new iPhone 5s, 5c and revamped MacBooks, making today’s report the first to include a full three-month period of sales for the new devices on top of the expected boost in revenue leading into the holidays. It’s also the first report since Apple shipped the new Retina iPad mini, iPad Air, and Mac Pro.
Apple reported record quarterly revenue of $57.6 billion, which lands between its guidance for the quarter of $55-$58B and estimates by analysts averaging approximately $58.1B. It also reported net quarterly profit of $13.1 billion, or $14.50 per diluted share. Those numbers compare to the revenue of $54.5 billion and net profit of $13.1 billion reported in the same quarter last year.
Break down of device sales for Q1 2014 include 51 million iPhones, 26 million iPads (both all-time quarterly highs), 6 million iPods and 4.8 million Macs. Prior to today’s report the consensus from an average of analyst estimates predicted Apple would sell approximately 55M iPhones, 25M iPads, and 4.6M Macs. Expand Expanding Close
View of the main campus from the on-site auditorium building
Apple will receive the full set of building permits for its ‘spaceship’ campus in Cupertino today, following a formal approval vote by the full council. This final vote was just a rubber-stamping exercise, with the go-ahead effectively granted a month ago.
It’s taken the company some time and work to reach this point. The company initially faced objections from local residents on environmental and traffic grounds, prompting CFO Peter Oppenheimer to send out a brochure to local residents to alleviate concerns, and the project is reportedly $2B over-budget. But work can now begin, with completion expected in 2015 or 2016.
You can watch the video of the full council meeting below.
New renders released by the City of Cupertino from Apple’s planning documents provide the most detailed view yet of what life inside the company’s new spaceship headquarters will be like.
Illustrating everything from cafes to car-parks, the renders are intended to provide a feel for what the building will be like to work in, rather than just its appearance as a structure. They also include additional renders of the upper level of the 1,000-seat auditorium.
Cupertino City Council last night voted unanimously to approve Apple’s planning application for the circular campus building first presented to council members by Steve Jobs in 2011, in what was to turn out to be his last public appearance before his death. It was Steve Jobs who nicknamed the building the ‘spaceship.’
Although the approval is still subject to a final vote on 15th November, the San Jose Mercury News reports that this is merely a formality.
Now that the project has been approved, the council by regulation must meet one more time on Nov. 15 for a final and largely perfunctory vote. The spaceship, for all practical purposes, has now been approved for liftoff.
You can view a gallery of photos of a detailed model below the fold … Expand Expanding Close
Apple will hold its quarterly earnings call to announce results on October 28th, as noted on Apple’s investor website. Typically, Apple’s CEO Tim Cook and CFO Peter Oppenheimer will read prepared statements about the company’s performance, before opening the call to a question and answer session for analysts. The call will begin at 2PM Pacific / 5PM Eastern time. Apple will publish a press release reporting their results about half an hour before the call is due to begin.
To coincide with Apple’s Q3 2013 earnings release, the company will hold a live conference call to discuss the results at 2 PM Pacific/ 5 PM Eastern Time. Below, we will have a full live blog of the proceedings. We’ll be nothing things of interest.
Apple just posted a slew of new SEC filings to their Investor Relations site. Back in 2011, the company’s Board of Directors approved an amendment that requires all restricted stock unit (compensation not actually issued until vested a certain time later) to be performance-based, rather than stock price-based. In an effort to “lead by example”, Tim Cook worked with the Board to change his large 1-million RSU 2011 award into performance-based compensation. In return, the RSUs will convert to common stock sooner.
In addition, multiple Apple executives sold large amounts of stuck after their RSUs vested today:
Before either Apple CEO Tim Cook or Apple CFO Peter Oppenheimer took the stand to testify on behalf of Apple to defend the company’s tax practices, Senator Rand Paul of Kentucky lashed out on Senator John McCain and Senator Carl Levin for the “spectacle of dragging in here executives from Apple using the brute force of government to bully a great success story.”
Senator Paul, a notable Tea Party leader and son of Representative Ron Paul, is often outspoken on issues of tax reform and made no effort to align for his Republican colleague Senator John McCain.
Chairman Levin didn’t hesitate to bring the narrative against Apple and its tax practices back to the center stage soon after Senator Paul’s comments.
At Apple, the environment is a top priority, and we’ve designed Apple Campus 2 with cutting-edge features to make it energy-efficient and environmentally sustainable. Several of these green technologies are highlighted in this update.
As at our existing campus on Infinite Loop, we are committed to 100% renewable energy to power Apple Campus 2. This will include onsite generation from photovoltaics and fuel cells. As part of this effort, approximately 8 megawatts of photovoltaics will be installed, creating one the largest installations of its kind on a corporate campus anywhere in the world.
Apple started in Cupertino, and we are excited to continue to grow here. As we build the new campus, we also plan to invest in new roadways and intersection improvements, add new sidewalks and better bike lanes, and plant new trees in newly created medians in the surrounding neighborhood.
Find Steve Jobs’ original Campus 2 submission to the Cupertino City Council video below: Expand Expanding Close
Morgan Stanley analyst Katy Huberty issued a note to clients today claiming she is even more confident Apple will introduce a low-cost iPhone following a meeting with Apple CFO Peter Oppenheimer. This certainly isn’t the first time we’ve heard an analyst discuss the much-rumored low-cost iPhone. Since its release, the success of the lower-priced iPad mini has been the rationale behind many analysts prediction of a less expensive iPhone expected to launch sometime later this year. We’re not so sure Oppenheimer let anything slip that we wouldn’t have otherwise heard at the most recent earnings call, but Huberty wrote she is even more confident that the device is in the works following the meeting with the Apple executive (via BusinessInsider). Her reasoning: success of the iPad mini in emerging markets, desire among Chinese consumers to purchase a new, low-cost device, and the continued success of iPhone 4 during last quarter:
We also see several signs that a lower priced iPhone makes sense: 1) iPad Mini is expanding Apple’s customer base with 50% of purchases in China/Brazil representing new customers to the ecosystem. 2) Chinese consumers show a desire to purchase the latest version of iPhone (instead of discounted older generations). 3) iPhone 4 demand surprised to the upside in the December quarter. Even at a low 40% gross margin and 1/3 cannibalization rate, we see an “iPhone Mini” as incremental to revenue and gross profit dollars.
Apple just announced on its Investor Page that it would report its Q1 2013 earnings Jan. 23. As it does once a quarter, Apple will issue a press release at 4:30 p.m. EST with the numbers and follow with a conference call at 5 p.m. EST to discuss the results with CEO Tim Cook, CFO Peter Oppenheimer, and more. The report will give us a close look into how Apple fared during the holiday shopping season and its outlook for 2013. As of the last earnings report in October, Oppenheimer said he expected revenue of about $52 billion and diluted earnings per share of about $11.75 for Q1 2013. Past numbers, questions from investors on the conference call typically bring out new, interesting pieces of information from Apple, and you bet 9to5mac will provide full coverage. [Apple]
Cupertino-based Apple is set to open its first Apple Store in Shenzhen, China on Nov. 3 at 9 a.m., as confirmed on its website earlier this morning. The store is located in Yitian Holiday Plaza at Nanshan district of Shenzhen, and it marks the seventh store in China. Apple CEO Tim Cook and company are moving aggressively into the country to keep up with their 2010 goal of 25 stores by the end of 2012.
If Shenzhen sounds like a familiar city in China, it is because the city serves as one of the biggest hubs for the manufacturing of parts for Apple products. Shenzhen is home to Foxconn—a factory where the brute of Apple devices are being produced daily.
When touring Apple’s biggest retail store in China last month, Apple Senior Vice President of Retail John Browett confirmed the Shenzhen store. MIC Gadget noted many “rich people live in this part of the city so the demographics are very good for high end retailers.”
According to several local media, Apple is also set to open a new store in Chengdu, China where the iPad is manufactured. Apple has yet to confirm, but it has ramped up employee hiring.
The company has reiterated the importance of China to Apple several times. During its Q4 earnings call last Thursday, CFO Peter Oppenheimer announced Apple gained $5.7 billion in revenue during Q4 and $23.8 billion FY2012 from China.
Reliable sources recently provided 9to5Mac with official blueprints of Apple Campus 2 that detail and illustrate the mammoth project currently in development. (These are just a few of the confidential images.)
Solar panels cover the main building’s entire roof, and the images above depict additional outdoor and indoor aspects of the new structure. The exclusive slides named Foster + Partners as one of the architecture firms working on the project, and they cited Arup for consulting engineering, OLIN for landscape architecture, and Davis Langdon for construction. Previous reports indicated that construction is supposed to start later this year.
In related news: Apple CFO Peter Oppenheimer sent neighbors brochures recently to solicit feedback on the project.
