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News › Apple

AppleiPadiPhoneiPod

Notes from Apple’s Q2 2012 Conference Call

Last updated: May 13, 2021 4:58 am UTC
By Charles Starrett

During Apple’s second-quarter 2012 financial results conference call, Apple CEO Tim Cook and CFO Peter Oppenheimer made a number of comments related to Apple’s iPhone, iPad, and iPod businesses.

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Peter Oppenheimer, Apple’s CFO, opened the conference call by calling attention to the company’s record March quarter, which he said was fueled primarily by strong iPhone and iPad sales. He said that iPod sales, though down year-over-year, were ahead of internal projections, and as with the past few quarters, the iPod touch accounted for over half of iPod sales. Regarding the iTunes Store, Oppenheimer said that the catalog now includes over 28 million songs and 45,000 movies.

iPhone sales more than doubled in the Asia Pacific region, according to Oppenheimer, who added that the January launch of the iPhone 4S in China and the addition of China Telecom as a second carrier were responsible for a lot of growth. Cook later stated that the company saw 3X year-over-year revenue growth in China.

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Oppenheimer said that the manufacturing ramps for both the iPhone 4S and the third-generation iPad were extremely successful, which enabled the company to fulfill demand in the March quarter, compared to the June quarter last year. As a result, the company is expecting a sequential decline in iPhone sales.

The company was “very pleased” with iPad sales during the quarter—including sales of the third-generation model, which is now available in over 40 countries. iPad sales more than doubled in each segment, and as a result, the company is slightly supply-constrained. Oppenheimer said that the iPad is about to enter the K-12 institution buying season, which the company expects to boost sales, and later added that the company is selling third-generation iPad units as fast as it can make them.

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When asked about what the company is learning about lower price points on the iPhone and iPad, Apple CEO Tim Cook said the company is thrilled with the results they’ve seen thus far, although obviously it’s only been a few weeks.

He added that the lower price of the iPad 2 unlocked some education demand, probably more price-sensitive customers, and in some countries, there was a marked change in demand. The company is not sure yet what the mix of third-gen iPad to iPad 2 will be, but said that on absolute sales of the iPad 2, what the company is seeing is exciting. Cook went on to say that the iPhone 3GS and iPhone 4 contributed to the 35 million in iPhone sales—the company’s second biggest quarter in terms of iPhone sales.

Overall, more than 365 million iOS devices have been sold, and the App Store now offers over 600,000 apps, 200,000 of which are built specifically for the iPad. Oppenheimer added that iCloud now has over 125 million customers signed up.

Finally, when asked about the company’s ongoing legal disputes, Cook said that he has always hated litigation, and just wants companies to invent their own stuff.

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