Apple's Q1 2011 Conference Call: Notes Of Interest


Yesterday Apple reported its best quarter in the company's history. That what numbers tell and Apple's CEO Steve Jobs said at the beginning of a conference call:

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales. We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

The company revealed many details about its current financial condition, so we created a list of the most interesting facts. Here is it:

General financial information on the Q1 2011:

  • $26.74 billion in revenue (in comparison to $15.68 million in the year-ago quarter);
  • $6 billion net quarterly profit (in comparison to $3.38 billion in the year-ago quarter);
  • Record 16.24 million iPhones (86% unit increase over the year-ago quarter),  19.45 million iPods (7% unit decline), 7.33 million iPads (wasn't available a year ago) and 4.13 million Macs (23% unit increase) had been sold in the three-month span including the holiday buying season.

Apple's regional business

  • International sales made 62% of the company's revenue in the Q1 of fiscal 2011;
  • Apple's business in both Americas made $9.2 billion of Apple's revenue;
  • $13.74 billion came from Asia Pacific, Japan and Europe;
  • $3.8 billion came from retail;
  • Europe became the second-largest region after the U.S., as it made $7.3 billion in revenue.
  • Apple has chosen China as its top priority, and results are called as "absolutely staggering", as the revenue increased by 4 times in comparison to the year-ago quarter.
  • Korea and Japan are also doing well, revenue was up 83% in comparison to the year-ago quarter.


q111_macs q111_macs_models

  • 4.13 million Macs were sold in the first quarter of 2011;
  • 2.9 million of Macs were portables, which made $3.7 billion revenue for the company;
  • Apple sold 1.2 million desktop Macs and earned another $1.7 billion on that;
  • Tim Cook thinks there is also a halo effect, which causes some people who've heard about iPad to buy Macs. He is also glad MacBook Airs became so popular in less than 90 days after its start.



  • Apple sold 16.24 million iPhones during the Q1 of 2011, which made $10.5 billion of revenue for the company;
  • In the December quarter iPhone sales increased by 86%;
  • 88 of 100 companies listed in the Fortune already deploy iPhone;
  • The device's average selling price was $625;
  • The demand for Verizon iPhone 4 is bigger than Apple can now offer, said Tim Cook, but the company works "around the clock to build more";
  • Tim Cook also said average selling price for iPhone will not be decreased because of the CDMA iPhone launch;
  • By signing a non-exclusive multi-year deal with AT&T in the U.S. Apple has no more countries where iPhone is available only with one carrier;
  • Apple has already sold 160 million iOS devices.



  • Apple sold 7.3 million iPads during the Q1 of 2011, which made $4.6 billion of revenue for the company;
  • Demand for an iPad is strong for education, enterprise and ordinary customers;
  • More than 80 companies from the Fortune 100 list are piloting or deploying iPad already;
  • The device's average selling price was $600;
  • By the end of the quarter iPad was available in 46 countries;
  • In the next few weeks it will appear in 15 more countries;
  • Supply increased by about 525,000 units by the end of the quarter.



  • Apple sold 19.4 million iPods during the Q1 of 2011, which made $3.4 billion of revenue for the company;
  • The iTunes business gave Apple more than $1.1 billion in revenue;
  • iPod touch sales grew 27% year over year;
  • More than 50% of iPods sold are iPods touch.

Retail business

  • Apple earned $3.5 billion due to retail business, which is 95% increase over the year-ago quarter;
  • Every second Mac was sold to a customer who never owned Mac before;
  • People buy Macs most of all in China;
  • Retailers sold 851,000 Macs in the Q1 of 2011, which is 24% more than in a year-ago quarter;
  • Approximately 321 stores were working in the December quarter, and 6 more were opened;
  • 87 working stores are situated outside the U.S;
  • Average revenue per store is about $12 million.

Next fiscal quarter

  • Apple expects the next quarter revenue will be $22 billion, and EPS will be about $4.90;
  • Gross margins are expected to be ~38.5%;
  • Taxes will increase by 25.5%;
  • iPod and Mac sales will decrease after a holiday season. iPhone sales over year will increase "significantly";
  • Apple's representatives appeared to be unsure about further iPad sales as it is a new market.

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