Apple Q1-FY13 Concall: 0.8M iOS Apps, 250M iCloud Accounts, $2.1Bn iTunes Revenue & More


Apple reported $54.5 billion total revenue for the quarter ending December 31, 2012, registering a 52% growth from $36 billion revenues in the previous quarter and an 18% growth from $46.3 billion revenues in the same quarter last year. Here are some notes from the Apple’s Investor conference call:

- iOS devices: Apple CEO Tim Cook said that Apple has sold more than 500 million iOS devices till now, including 10 per second in the last quarter. In the earnings release, Apple had claimed to have sold 75 million iOS devices during the quarter, which includes 47.8 million iPhones, 22.9 million iPads and around 4.3 million iPod Touch devices.

- New Operating Segment: Apple CFO Peter Oppenheimer stated that they also have adopted a new format to report App store and iTunes sales. Under the new format, the company is reporting revenues from iTunes sales and stand-alone Apple and third party software and service sales as a single line item and is reporting revenue from all Apple and third party accessory sales as a separate item. Previously, Apple was bundling iTunes and app store sales along with accessories as ‘Other Music Related Products and Services’.

- iTunes Revenue: Apple generated revenue of $2.1 billion from iTunes during the quarter. During the quarter, they also extended the iTunes music store to 56 countries including India, Russia, Turkey and South Africa. Apple currently offer the iTunes music store in 119 countries and claims to have 20 million songs in its catalog.

- App Store Stats: Oppenheimer stated that App Store has registered a cumulative 40 billion unique downloads till now, including over 2 billion downloads in December 2012 and 20 billion downloads in 2012. Note that these downloads doesn’t include re-downloads and app updates.

The App Store currently offers 775,000 apps, including over 300,000 native iPad apps and has over 500 million active accounts across 155 countries. This is a significant increase from 700,000 apps and 435 million active accounts reported in September 2012. Interestingly, Cook however mentioned later in the concall that Apple has 800,000 apps in the App store.

Apple has also paid out over $7 billion to third party app developers till now, marginally up from $6.5 billion reported in the previous quarter.

- iCloud Accounts: Apple currently has 250 million iCloud accounts, up from 190,000 accounts reported in the previous quarter and the company’s iMessage service sends around 2 billion messages per day, up from 1 billion messages per day reported in June 2012. Cook also added that Apple has sent over 4 trillion notifications till now, although it is not clear if these notifications are across all the iOS devices and Mac computers running on Mountain Lion.

- Apple Maps: Apple had debuted an in-house Maps app in iOS6, dropping Google Maps as the default maps app. However, many iOS 6 were disappointed with this Apple Maps app, which doesn’t offer the level of detail provided earlier by the Google powered Maps app, which ultimately led to Apple CEO Tim Cook publicly apologizing for iOS users for the maps mess. Cook said that they have made a number of improvements to Maps since its launch, including better satellite imagery, improved categorization and improved local information for 1000s of businesses among others. He also noted that the usage in maps has been significantly higher than it was prior to iOS 6.

- iPhone Sales: Apple reported 47.8 million iPhone sales during the quarter. Oppenheimer attributed this increase to the popularity and the aggressive rollout of iPhone 5. He informed that they have rolled out iPhone 5 to more than 100 countries by the end of December, which is the fastest iPhone rollout ever. Cook added that they experienced the highest sales growth in China, clocking a triple digit growth, although he didn’t disclose any specific number for it. iPhone 5 was launched in September 2012 along with a new iPod Touch and iPod Nano range.

Oppenheimer said that several government agencies and businesses are adopting iPhones as part of their mobile strategies. These include government agencies like NASA (National Aeronautics and Space Administration), the National Oceanic and Atmospheric Association, Immigration and Customs Enforcement, and the Transportation Security Administration and businesses like Neiman Marcus, Skanska, and Volvo among others.

- iPad rollout: Like iPhone, Oppenheimer informed that several government agencies and businesses are also adopting iPad for their work. He mentioned that financial institutions like Barclays, Nomura Securities, and Bank of Beijing are currently deploying iPad to their employees to enable them work securely with financial portfolios and products and Barclays has already deployed over 8000 iPads to its employees.

On the government front, US state legislatures in Virginia, Texas, and West Virginia are currently using iPads to get instant access to government documents and information. Outside the United States, the Sweden government has deployed around 10,000 iPads as part of its local government workflow solution and the Netherlands government has purchased over 5,000 iPads for the Dutch Tax Authority and the Dutch Court System.

- Macs: Apple witnessed a decline in Mac sales during the quarter, reporting sales of around 4.1 million Macs for the quarter, as compared to 5.2 million Macs in Q1-FY12. Cook pointed out that Apple had indicated a decline in Mac sales in the previous quarter’s earning call, since they had announced new iMacs only in October end and there was a limited amount of time left to manufacture them and ramp up the production. He stated the new 21.5″ iMac started shipping only in November end and the 27″ iMac started shipping only in mid-December, due to which iMac sales were down by 700,000 units year on year (YoY).

- Apple TV: Cook stated that Apple has sold more than 2 million Apple TV units till now, registering a 60% growth YoY. In the previous quarter, Apple had reported sales of 1.3 million Apple TVs. Last month, reports had suggested that Apple was planning to roll out Apple TV for Rs 6,990, however there is no official information from Apple yet.

- Retail Stores: Apple registered $6.4 billion revenue from its retail stores for the quarter. During this period, the company opened 11 new stores and relocated or expanded 14 stores, including four new stores in Greater China region. At the end of the quarter, the company had 401 retail stores, of which 150 stores are outside the United States. Oppenheimer mentioned that they received 121 million visitors to their stores for the quarter, up from 110 million in the same quarter last year.

Related:

- Apple Q1-FY13: 47.8M iPhones, 22.9M iPads Sold; And $54.5 Bn Revenue
- Apple Q4 Results: $8.2B Profit; Sells 26.9M iPhones, 14M iPads; On iPad Mini
Apple Q3 Results: $8.8B Profit; Sells 26M iPhones, 17M iPads; India Not A Priority
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