Tim Cook

Apple is gearing up to issue another bond offering this week, with a conference call with investors reportedly scheduled today, according to reports this morning from Bloomberg and The Wall Street Journal. Apple hasn’t announced that it is holding an investor call today as of yet, but the announcement will likely be posted to Apple’s Investor Relations website if it is indeed happening. According to the WSJ, this bond offering will be the first from Apple to involve the euro currency:

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The Apple Watch’s launch is scheduled to occur in the “spring,” according to Apple Senior Vice President of Retail and Online Stores Angela Ahrendts, later in 2015 than some had originally anticipated. Ahrendts stated the timeframe to retail employees in a video message, a transcript of which was provided by a source. While explaining that employees need to conserve energy for upcoming shopping seasons, Ahrendts stated, “we’re going into the holidays, we’ll go into Chinese New Year, and then we’ve got a new watch launch coming in the spring:”

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In an essay published on Bloomberg’s website, Apple CEO Tim Cook has publicly come out as gay. Although his sexuality wasn’t really a secret, this is the first time he has officially confirmed his sexual orientation. Cook says he has relaxed this aspect of privacy to help others as part of Apple’s efforts against discrimination. The essay can be read in full at Bloomberg Businessweek.

At the same time, I believe deeply in the words of Dr. Martin Luther King, who said: “Life’s most persistent and urgent question is, ‘What are you doing for others?’ ” I often challenge myself with that question, and I’ve come to realize that my desire for personal privacy has been holding me back from doing something more important. That’s what has led me to today.

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Apple CEO Tim Cook clarified the recent decision to quietly remove the iPod classic from sale earlier this year during a talk tonight at Wall Street Journal’s WSJD Live conference. According to the executive, some parts needed to manufacture the device were no longer available, and the cost of engineering a new version that didn’t require those parts wasn’t worth the effort due to low user demand.

The device vanished without a mention from Apple’s website last month following a redesign of the company’s website immediately after the iPhone 6 debut. It was the last device Apple still sold that used the “legacy” 30-pin connector, while all other iPod models have moved onto the Lightning connector.

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Apple chief executive Tim Cook confirmed just moments ago in a live interview at The Wall Street Journal: Digital conference that Apple Pay received over 1 million activations in the first 72 hours following its launch last week. Cook added that the mobile payments platform is bigger than all contactless competitors combined, presumably including rival service Google Wallet.
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On the final day of Tim Cook’s four-day visit to China, he told state news agency Xinhuanet that Apple Pay was top of the list of things the company wanted to take to China.

“China is a really key market for us,” said the CEO. “Everything we do, we are going to work it here. Apple Pay is on the top of the list.”

Cook said that Apple would be working to understand the steps needed to bring the new service to China before meeting with local carriers, banks and merchants …

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Tim Cook noted during Monday’s earnings call that Apple was “investing like crazy” in China, but he took the opportunity of his current visit to the country to put a specific number on the company’s retail expansion plans: it will open 25 new Apple Stores in Greater China within the next two years. Greater China includes both Hong Kong and Taiwan.

Speaking to local media, Cook also said that China would in time become Apple’s biggest market, reports the WSJ … 
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Two days after evidence emerged of a phishing attack on iCloud, allegedly due to the Chinese government firewall redirecting traffic to a fake login page, the Chinese state news agency Xinhuanet is reporting a meeting in Beijing between Tim Cook and Chinese vice premier Ma Kai.

Chinese Vice Premier Ma Kai and Apple Inc. CEO Tim Cook on Wednesday exchanged views on protection of users’ information during their meeting in Zhongnanhai, the central authority’s seat. They also exchanged views on strengthening cooperation in information and communication fields.

The Chinese government censors access to the Internet by deploying a country-wide firewall which blocks certain sites and which can redirect traffic from sites the government dislikes to officially-sanctioned ones …

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While yesterday’s iPad numbers don’t look great – down 12.5% year-on-year, the third successive quarter in which sales have fallen – Tim Cook remains upbeat about the product, stating that it “has a great future” and that its long-term prospects are more important than “individual 90-day clicks.”

Quartz‘s Dan Frommer pulled together some of the things Cook has to say about the device, and while you’d clearly expect Apple’s CEO to put the best possible spin on things, he makes some reasonable arguments … 
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Following today’s release of Apple’s quarterly earnings report, Tim Cook has sent a letter to employees praising the company’s growth and the dedication of Apple employees to the development of new iPhones, iPads, and Retina iMac. Cook calls the iPhone 6 and 6 Plus launch the “most successful” in the history of the device.

Cook also talks about the Apple Pay launch and reiterates the points made during today’s earnings call, saying that the purpose of introducing a payment system was to ensure that customers have a “simple, secure and private way to pay.” He also commends the software development teams on the consistent cross-platform experience introduced in iOS 8 and OS X Yosemite.

Cook closes by saying that he will be traveling to Beijing to talk to employees in a meeting that will be recorded and posted the company’s internal website. Employees from across Apple will be able to submit questions beforehand to be asked during the Q&A session.

You can read the full letter below:

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As we mentioned last month, Apple is scheduled to host its quarterly conference call today to discuss its earnings report from the fourth quarter of its fiscal year: this includes 39 million iPhones, 12.3 million iPads, 2.6 million iPods, and 5.5 million Macs. Apple already reported today that it earned $42.1 billion in revenue during its Q4 period.

This quarterly conference call with analysts and investors will include the opening weekend of iPhone 6 and iPhone 6 Plus sales which included a record 10 million sales including 4 million units sold during the first 24 hours of pre-orders. It will also be the first call since Apple previewed the Apple Watch to the public, shipped iOS 8 and OS X Yosemite, and introduced new iPads and a Retina 5K iMac, although sales for those devices are not included in the previous quarter. Apple CEO Tim Cook and Apple CFO Luca Maestri will also likely mention Apple Pay, the company’s mobile payment service which launched for iPhone 6 and iPhone 6 Plus users earlier today.

Investors and analysts will have an opportunity to ask Tim Cook and company questions during the earnings call and we’ll be listening to bring you coverage starting at 5pm EST/ 2pm PST.
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Apple today announced its Q4 2014 earnings results reporting that the company earned $42.1 billion in revenue and $8.5 billion in profit during the quarter.

“Apple® today announced financial results for its fiscal 2014 fourth quarter ended September 27, 2014. The Company posted quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion, or $1.42 per diluted share. These results compare to revenue of $37.5 billion and net profit of $7.5 billion, or $1.18 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 37 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter’s revenue.”

In addition to reporting its earnings, Apple has disclosed sales numbers for its main revenue generators. The company sold:

• iPhone: 39.272 million, up 16.2%
• iPad: 12.316 million, down 12.5%
• Mac: 5.52 million, up 20.7%
• iPod: 2.62 million, down 25.1%
• iTunes: $4.208 billion, up 8.2%
• Accessories: $1.486 billion, up 12.7%

Totals:

• Revenue: $42.123 billion, up 12.4%
• EPS: $1.42 per share, up 20.3%

Apple CEO Tim Cook had the following to say regarding the results:

“Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus,” said Tim Cook, Apple’s CEO. “With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.”

Apple CFO Luca Maestri added this:

“Our strong business performance drove EPS growth of 20 percent and a record $13.3 billion in cash flow from operations in the September quarter,” said Luca Maestri, Apple’s CFO. “We continued to execute aggressively against our capital return program, spending over $20 billion in the quarter and bringing cumulative returns to $94 billion.”

Apple’s stock price, which closed at $99.76 (up 2.14% today following the launch of Apple Pay) is up during after-hours trading as well crossing the $100 mark at certain points.

During Apple’s fourth quarter, the company shipped the iPhone 6 and iPhone 6 Plus to customers and closed on its deal to acquire Beats Electronics and Beats Music. During the previous earnings call with investors and analysts, Apple CFO Luca Maestri shared that the company will begin separately reporting earnings from Beats in 2015.

These numbers compare to last quarter’s results of $37.4 billion in revenue and sales of 35.2 million iPhones, 13.2 million iPads, and 4.4 million Macs. You can also compare today’s numbers to analyst expectations from before the announcement. Apple is holding a conference call today at 2 PM Pacific/5 PM Eastern time to discuss the quarter’s earnings, which we will be covering live. Cook and Maestri will likely share prepared remarks and then take a series of questions at the end from financial analysts.

For Q1 2015 Apple is providing guidance between $63.5 billion and $66.5 billion. The full Q4 earnings results release is below:

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Analysts are predicting that Apple (AAPL) will announce record sales and earnings in today’s fiscal Q4 (calendar Q3) earnings call, reports Fortune.

I’ve got the collected fiscal Q4 estimates of 33 Apple analysts — 21 professionals and 12 amateurs. They are all to a man (and one woman) predicting record Q4 sales and earnings (up 7.1% and 11.9%, respectively).

The analysts also expect earnings per share to be up 12% year-on-year, to $1.32 … 
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It appears that most of the foundation is laid now in an update from a video taken by a drone two weeks ago.

Apple CEO Tim Cook has called Apple’s Campus 2 the ‘Greenest in the World’. The controversial structure which will house 12,000 staff in 2.8M square feet on 176 acres and is estimated to be completed in 2016. Interestingly, even though Apple is covering the construction site with a high green wall, it is updating the 3D flyover of the location in Apple Maps somewhat frequently. The latest looks like it was taken earlier this summer.

An official updated aerial shot from Apple was also posted on the City of Cupertino’s website:

You can follow the progress in our Campus 2 story line here. We’re going to try to get a new video every few weeks so stay tuned.

 

Update: Visit Apple.com/ApplePay for the latest information on where to use Apple Pay in stores, and featured Apple Pay apps for iPhone and iPad here.

With Apple Pay launching on Monday with iOS 8.1 for iPhone 6 and iPhone 6 Plus users, Apple CEO Tim Cook shared an update at today’s special event with additional retailers and iOS apps that will accept Apple Pay at launch or have committed to accept Apple Pay in the future. According to Apple’s microsite for Apple Pay, the company has added 16 additional retailers and venues with plans to accept Apple Pay at launch or in the future. In addition to those retailers and venues, Apple has added 12 additional apps that plan to accept Apple Pay starting on Monday or sometime after the launch date.
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Apple’s second retail store in Turkey appears to be finally nearing completion, as Apple branding has been added to the black cladding on the storefront in photos posted by Apple Toolbox as the company confirmed its plans to open the store.

Apple opened its first store in the country back in April, on the European side of the city, first announced during a meeting between Tim Cook and President Abdullah Gül. Istanbul straddles the European and Asian continents, and the second store is located in the Asian side, in a shopping mall called Akasya … 
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Included in activist shareholder and investor Carl Icahn’s open letter to Apple CEO Tim Cook requesting an increased stock buyback from the company is somewhat of a prediction about when Apple might release an actual Apple TV set, not just an updated set-top box. Icahn sees fiscal year 2016 as an opportunity for Apple to enter the home television market citing an upgrade cycle due to UltraHD displays.

As we highlighted in our previous letter, we believe UltraHD’s (ultra-high-definition television) superior picture quality in comparison to regular HD will drive a major TV replacement cycle as the price gap between them narrows. It should also be noted that Reed Hastings, CEO of Netflix, has referenced UltraHD as a major catalyst for Netflix going forward, and while this is true for Netflix, we believe it is also true for Apple. Against the backdrop of this replacement cycle, FY 2016 represents an opportune time to introduce an UltraHD TV set.

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