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Highlights of Apple's 1Q 2011 Conference Call

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While full details of Apple's conference call yesterday covering the company's blowout earnings for the first fiscal quarter of 2011 are available in our coverage post, we've compiled a few of the more interesting items that merit some additional attention:

- Record-breaking quarter: Apple set new quarterly records for Mac, iPhone, and iPad sales, as well as revenue and profit.

- iOS device sales booming: Apple has now sold over 160 million iOS devices since the original iPhone debuted in mid-2007, with iPhones accounting for the largest share at nearly 90 million. Apple sold over 360,000 iOS devices per day during the quarter, and iOS devices generated nearly two-thirds of Apple's quarterly revenue.

- iPad sales skyrocket: Apple's iPad sales of 7.33 million were well above analyst expectations and brought total sales to 14.8 million over the first nine months of availability.

- iPhone supply issues: iPhone supplies remain constrained, and the company believes it could have sold more than the record 16.24 million units sold during the quarter if supply had been available. Apple is continually working to increase production capacity, but it takes time.

- Long-term component contracts: Apple has entered into three long-term component supply contracts worth $3.9 billion. Executives declined to elaborate on the suppliers or components involved, but likened the deals to one signed in 2005 to secure five-year access to flash memory as the company made its push into flash-based iPods and eventually the iPhone.

- Tablet competition: Apple COO Tim Cook divided existing tablet offerings from competitors into two flavors: Windows-based tablets requiring a keyboard or stylus and small Android-based tablets running an operating system not designed for the form factor and consequently yielding a "bizarre" scaled-up smartphone experience. Apple doesn't consider either of the two categories competitive with the iPad. Looking ahead to Android 3.0 tablets, Cook referred to most of the CES tablet announcements as "vapor" for the time being and indicated that Apple will evaluate them as they come to market, also noting that Apple is of course not standing still with the iPad.

- "Cannibalization" by the iPad: Cook noted the iPad is slightly eating into Mac sales, but that with the Mac's relatively small share of the PC market, there is room for the iPad to replace a lot of PC sales while only marginally affecting the Mac. Cook also referenced the "halo effect" in which customers introduced to the company with the iPad are finding themselves turning to Mac for their computer purchases. "If this is cannibalization, it feels pretty good," Cook quipped.

- Jobs' health: Surprisingly, Steve Jobs' new medical leave of absence was not addressed either by Apple executives or analysts posing questions during the Q&A portion of the call. Brief discussion of the issue from the perspective of whether there will be any substantive effect on Apple's operations going forward was widely expected.

Article Link: Highlights of Apple's 1Q 2011 Conference Call
 
Article Link
https://www.macrumors.com/2011/01/19/highlights-of-apples-1q-2011-conference-call/
iPad sales skyrocket: Apple's iPad sales of 7.33 million were well above analyst expectations and brought total sales to 14.8 million over the first nine months of availability.
Click to expand...

Remember when the iPad first came out and people tried to guess how many would sell in 2010? 3 million was a popular guess, though a lot of folks thought that was too high. Guess the Tablet Era began with a bigger bang than almost everyone thought.

I'm seeing some blowback on Tim Cook's comments about tablets running Android. But his comments were correct: They do run an OS not designed for tablets, as Google said; they are running at a size that makes it harder to do touch gestures with your fingers with the level of precision you can do with the larger iPad; and the announced future Android tablets are just that: announced, but not yet shipping or even priced.

That's why the iPad sold so well. The only real competition was the Samsung Tab, which sold well, but had few of the iPad's advantages. And the market share shows it.
 
sarcasm/jokes aside, great for apple and supporters........ shows just how well a deeply focused and integrated business can do.....

"keep it up team"
 
Last edited by a moderator:
MacRumors said:
Cook also referenced the "halo effect" in which customers introduced to the company with the iPad are finding themselves turning to Mac for their computer purchases. "If this is cannibalization, it feels pretty good," Cook quipped.
Click to expand...

If only this were true about the xServe as well. It's a pretty decent server for school districts, businesses, etc. for managing user accounts, e-mail, calendaring, etc. If only Apple had put in more effort into it, it would've been great. But, alas, servers aren't "sexy" enough.
 
rdowns said:
Imagine how many they would have sold if they didn't name it after a sanitary napkin.
Click to expand...

The lame play on works is not mentioned anymore in the media. The iPad product name has taken on its own life now in consumerism, and when mentioned, for most non-adolescents, causes people to think of nothing but the Apple product.
 
Congratulations to Apple and Steve Jobs.

Thanks to the reporters for leaving the health issues out of the Q&A session, by doing that you showed some respect of his privacy.

best wishes to Jobs
 
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MacRumors said:
- Long-term component contracts: Apple has entered into three long-term component supply contracts worth $3.9 billion. Executives declined to elaborate on the suppliers or components involved, but likened the deals to one signed in 2005 to secure five-year access to flash memory as the company made its push into flash-based iPods and eventually the iPhone.
Click to expand...
Has there been any speculation on what the three are? One of them obviously is renewing/expanding the flash memory agreement. Another likely one seems to be for the iPhone's retina display. And the third?
 
7.33 Million iPads
+
16.24 Million iPhones
--------
23.57 Million iOS devices

That equals about 260,000 per day. Not at all near their 360,000 claimed.

Are iPods still that popular?
 
TheClarkster said:
7.33 Million iPads
+
16.24 Million iPhones
--------
23.57 Million iOS devices

That equals about 260,000 per day. Not at all near their 360,000 claimed.
Click to expand...

You forgot iPod Touches and Apple TVs...which could easily make up the difference.

GL
 
i.mac said:
Just for kicks.... I wonder if someone could summarize the predictions, nay sayers and skeptics/pundits opinions?
Click to expand...

Too much to summarize, but this old thread has plenty of "Stupid name", "Just an iPod Touch", "who wants to buy something that can't even run Flash", "Bigger fail than macbook air and apple tv combined", "Just an oversized Ipod Touch. This will not sell well no need for this device."; "Will not be good for reading books neither not using the ink technology."

It's really a fun read.

https://forums.macrumors.com/threads/854974/
 
Surprisingly, Steve Jobs' new medical leave of absence was not addressed either by Apple executives or analysts posing questions during the Q&A portion of the call.
Click to expand...

Why is that surprising? There's no point asking a question if you're already sure you know what the answer will be. If Apple or Steve had anything substantive to say, they'd have said it, and if asked, the answer would absolutely have been that "we don't expect there to be any substantive impact on the company and beyond that we don't comment on the private medical status of our personnel."
 
notabadname said:
To all the iPad naysayers; 14.8 million. It speaks for itself.
Click to expand...

To put that number into perspective: When the iPad was released, I thought that 10 million in the first complete year would be an absolute success. And that estimate was at the high end. These 14.8 millions are not just a huge number for all the naysayers, they are even a huge numbers for anyone who was optimistic in April 2010.

When I heard the first estimates of 20 million in 2011 I thought it was a ridiculously high number. Now that same number for 2011 would actually be considered not very good at all, because it would mean that growth has stopped. I think Apple would be unhappy with anything less than 28 million iPads in 2011.
 
NebulaClash said:
Remember when the iPad first came out and people tried to guess how many would sell in 2010? 3 million was a popular guess, though a lot of folks thought that was too high. Guess the Tablet Era began with a bigger bang than almost everyone thought.

I'm seeing some blowback on Tim Cook's comments about tablets running Android. But his comments were correct: They do run an OS not designed for tablets, as Google said; they are running at a size that makes it harder to do touch gestures with your fingers with the level of precision you can do with the larger iPad; and the announced future Android tablets are just that: announced, but not yet shipping or even priced.

That's why the iPad sold so well. The only real competition was the Samsung Tab, which sold well, but had few of the iPad's advantages. And the market share shows it.
Click to expand...


sales really took off after 4.2 came out and you could do little things like listen to pandora and check email at the same time
 
i dont know why this hasnt been said, but dont you think apple told reporters that his health was not to be brought up. i am sure thats what everyone wanted to know, but apple told them to leave it out of it, no?
 
I don't know why they didn't ask about the status of the Data Center.
They did ask about it several quarters back and Apple did answer by saying it was on schedule and probably going online by the end of the year (2010)
SO WHAT'S UP WITH THAT?!:confused::mad:
 
Apple COO Tim Cook divided existing tablet offerings from competitors into two flavors: Windows-based tablets requiring a keyboard or stylus and small Android-based tablets running an operating system not designed for the form factor and consequently yielding a "bizarre" scaled-up smartphone experience.
Click to expand...

And....what's Cook's answer with how the iPad was designed? It's essentially the iPhone and iPod Touch in a 4x larger screen. I said essentially, people, not "exactly".


I'm hoping the 2.0 and 3.0 versions of the iPad offer more reasons to actually plunk down $500+
 
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