MacMusic  |  PcMusic  |  440 Software  |  440 Forums  |  440TV  |  Zicos
apple
Search

MacDailyNews presents live notes from Apple’s Q322 conference call

Thursday July 28, 2022. 10:46 PM , from Mac Daily News
MacDailyNews presents live notes from Apple’s Q322 conference call
MacDailyNews presents live notes from Apple’s Q322 Conference Call with analysts starting at 5pm EDT / 2pm PDT today, July 28, 2022.

Apple today will provide live audio streaming of its Q322 Results Conference Call. This stream is best experienced on an iPhone 7 or later, iPad (5th generation or later), or iPod touch (7th generation) using Safari on iOS 12 or later; or a Mac using Safari on macOS Mojave 10.14 or later. Streaming to your TV requires an AirPlay 2–capable device, or via AirPlay to an Apple TV (2nd generation or later) with the latest Apple TV software or tvOS. Other platforms may also be able to access the stream using recent versions of Chrome, Firefox, or Microsoft Edge (MSE, H.264, and AAC required).
Apple’s live conference call webcast will begin at 5pm EDT / 2pm PDT today here.
Apple today posted an all-time quarterly revenue record of $82.959 billion (vs. $81.434 billion billion YOY), up 2 percent year over year, and quarterly earnings per diluted share of $1.20 (vs. $1.30 YOY).
For the quarter, analysts’ consensus estimates expected Apple to post revenue of $82.8 billion with EPS of $1.16.
Live notes from Apple’s Q322 Conference Call in reverse chronological order:
• AAPL After hours: $162.12, +$4.77 (+3.03%) @6:00PM EDT
• End of conference call.
• Cook: China grew strong double-digit and set a new June quarter revenue record
• China App Store revenue affected due to lockdowns?
• Cook: We have incorporated all of this into our color. We see the digital advertising cloud continuing in the current quarter
• Q: Digital advertising impacted due to macroeconomy?
• Commodities are behaving “okay”
• Luca: There’s always a couple elements in gross margin to keep in mind: Foreign exchange (strong dollar is a challenge) and product mix/services
• Q: Gross margin impacts?
• Cook: It’s challenging to measure the replacement cycle at anytime, however our key task is to make a product that everybody loves, so that they want to trade up to the next gen.
• Q: Did COVID change iPhone replacement cycle?
• Cook: We believe in investing during the downturn, but are being mindful of investments
• Q: OpEx?
• Apple thinke the net of the lockdowns during the June quarter were a negative
• Apple saw lower demand in COVID lockdown cities and a rebound when those cities’ lockdowns ended
• Q: COVID lockdowns effect in China?
• Cook: We believe there was a macroeconomic hit on Wearables, Home, and Accessories
• Cook: We saw a cocktail of headwinds on Wearables, Home, and Accessories: Russian, inflation, supply, but we also have different launch dates with affects the compares
• Q: How much of an impact is Apple expecting on high ASP products due to inflation
• Luca: We do not provide guidance due to uncertainty, but approx. 600 basis points of foreign exchange headwinds is in play
• Q: BofA: Seasonality normal?
• Cook: Over 14,000 ARKit apps in the App Store already utilizing iPhone and iPad; we’re always exploring new technologies
• Q: AR/VR?
• Cook: The silicon shortage – no forecast when that will end; supply issue wil be less this quarter than in June quarter
• Cook: In June quarter, Apple came in slightly below the $4B number the company laid out as the hit Apple would take due to supply chain issues
• Q: Supply headwinds? When will supply/demand balance?
• Cook: Apple believes that the Mac has a very strong story and the company will see how they do for the quarter
• Cook: Difficult to test the demand without supply
• Apple, by the end of the quarter recovered a bit on Mac; still supply constrained
• Cook: We don’t project, but for last quarter, when the Shanghai COVID lockdowns began, Apple lost the primary source for Macs
• Q: Supply constraints for Mac?
• Cook: The data does not show a negative effect from inflation on iPhone
• Q: Seeing any issue from inflation via carriers?
• Apple product retain much more value for longer than rivals’ products
• Luca: Installment plans and trade-in programs are points of focus for Apple
• Buy Now Pay Later (Apple Pay Later)?
• Cook talks App Store ads
• Q: Apple’s advertising business?
• Luca: We expect some deceleration in the quarter from the 12% growth (due to foreign exchange; exiting Russia; macroeconomic headwinds)
• Q: Growth rate for services to continue?
• Cook has reason to be optimistic on iPhone
• Cook: Most important for Apple is to maintain sky high customer satisfaction
• Room for growth in emerging markets; much headroom in these areas
• Cook: Quality of product. Installed base continues to grow
• Q: Morgan Stanley: Reasons for iPhone’s continued strength?
• Cook: We are always looking and will buy when it’s strategic for Apple; wouldn’t rule anything out
• Q: Acquistions, especially for Services?
• Apple feels “very good” about the future of Services business
• Services growth rates have been very good over time
• Breadth and quality of Services will grow over time
• Services customer engagement is increasing
• Luca: There are a number of Services levers: Installed base in the engine and it continues to grow
• Q: Piper Sandler: How to model the Services business?
• Cook: We feel really good about the growth we put up for the quarter
• Services: Digital advertising business impacted by macroeconomic headwinds
• Mac and iPad too supply constrained to tell
• No obvious evidence on iPhone besides foreign exchange
• Cook: We do believe that we saw macroeconomic headwinds such as foreign exchange
• Q: Seeing inflation, consumer softening?
• Foreign exchang is affectign Apple, but the company is navigating that “fairly well.”
• Luca: guiding 41.5-42.5 – due to mix, foreign exchange (50 basis points impact)
• Q: Evercore: Reason for ross margin decline
• Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on August 11, 2022 to shareholders of record as of the close of business on August 8, 2022
• Expects supply constraints to decrease during quarter
• Apple believes YoY revenue growth will accelerate despite macroeconomic headwinds
• Apple assumes macroeconomic / COVID impacts do not worsen
• $122B total debt
• $178B in cash and marketable securities at end of qtr
• Enterprise is investing in Apple devices in order to attract and retain talent
• Paid subscriptions over 860 million, up over 160 million over the last 12 months
• Installed base of Wearables, Home and Accessories hit new all-time high
• iPad installed base high new all-time high; over half of iPad buyers are new to the product
• Nearly half of Mac buyers were new to the product
• Record number of switchers to iPhone during June quarter
• $22.9B operating cash flow (June qtr. record)
• $19.4B net income
• 71.5% services gross margin
• 34.5% products gross margin
• Each major services category hit records
• Installed base of active devices continued to grow and hit an all time high across all areas
• Luca: Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category
• Apple will continue to focus on excelllence
• Cook: We are clear-eyed on uncertainty in macro economic environment
• Lockdown Mode to protect journalists, politicians from sophisticated attacks via smartphone
• PassKey, led by Apple, intended to replace passwords
• Cook talks diversity and inclusion efforts
• Cook thanks Apple Retail Store, AppleCare team members
• Retail: Opened doors to new store in China during June quarter and today opened Appel Brompton Road in UK
• Apple TV+ inked 10-year deal with MLS to broadcast games worldwide
• Friday Night Baseball is delighing baseball fans
• Apple TV+ earned 52 Emmy Award nominations
• Apple TV+ proud of “Severance” and “Black Bird”
• Services revenue set a jUne quarter record, 12% YoY increase
• AAPL After hours: $163.80, +$6.45 (+4.10%) @ 05:09PM EDT
• Q322 Revenue breakdown:
– iPhone: $40.665B (vs. $39.570B YoY)
– Mac: $7.382B (vs. $8.235B YoY)
– iPad: $7.224B (vs. $7.368B YoY)
– Wearables, Home and Accessories: $8.084B (vs. $8.775B YoY)
– Services: $19.604B (vs. 17.486B YoY)
• Cook talks WWDC announcements
• Apple continues to have supply constraints and strong demand with Mac and iPad
• Cook extols capabilities of M2 Apple Silicon
• Apple celebrated 15th anniversary of iPhone during the quarter
• iPhone set June quarter record for sales to upgraders and switchers
• Supply hits came in less than low end $4B estimate given during last conference call
• All time record in installed based of active devices
• Apple saw record growth in emerging markets
• Apple CEO Tim Cook: Apple posted a June quarter revenue record of $83.0 billion, up 2 percent year over year, which is better than we expected.
• Audio fixed – conference call begins
• Possible audio SNAFU to start call…
• Q322 Conference Call begins
• AAPL After hours: $163.46, +$6.11 (+3.88%) @ 04:58PM EDT
• AAPL After hours: $162.65, +$5.30 (+3.37%) @ 04:52PM EDT
• AAPL After hours: $161.60, +$4.25 (+2.70%) @ 04:50PM EDT
The post MacDailyNews presents live notes from Apple’s Q322 conference call appeared first on MacDailyNews.
https://macdailynews.com/2022/07/28/macdailynews-presents-live-notes-from-apples-q322-conference-cal

Related News

News copyright owned by their original publishers | Copyright © 2004 - 2022 Zicos / 440Network
Current Date
Aug, Mon 8 - 02:37 CEST