Live Blog: Apple Earnings Call Cheat Sheet

Apple (NASDAQ:AAPL) tumbled in after-hours trading on Wednesday after revenue for its fiscal first quarter slightly missed Wall Street expectations and sales of the iPhone came in below targets. Revenue grew 18 percent to $54.5 billion and earnings came in at $13.1 billion, or $13.81 per share, for the December-ending quarter. Analysts were expecting earnings of $13.48 per share on revenue of $55 billion, according to FactSet data.

Year-over-year, Apple sold 48.7 percent more iPads, 21.1 percent fewer Macs, 17.5 percent fewer iPods, and 29.1 percent more iPhones.

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6:01 pm: Shares down 10.74 percent at $458.78.

6:00 pm Cook: [On getting aggressive with iPhone pricing] We feel great about our opportunity of getting products to our customers and a percentage of those buying other Apple products. We’ve seen evidence of that through history and continue to see it today.

5:53 pm: Cook: In terms of cannibalization, I think cannibalization is a huge opportunity for us our base philosophy is to never fear cannibalization. If we don’t, somebody else will just cannibalize it. We know the iPhone has cannibalized some iPod business, we know the iPad has cannibalized some Macs.

5:51 pm: Stock now down 10.41 percent at  $460.50 in after-hours trading.

5:49 pm: Cook: If you look at Greater China, our revenues were $7.3 billion in the quarter. This is incredibly high, up over 60 percent year-over-year. That’s comparing 13 to 14 weeks, too, so the underlying growth is higher than that. We saw exceptional growth in iPhones in triple digits. We shipped the iPad very late in the quarter in December [in China] and despite that, we saw very nice growth.

5:47 pm: Cook: The 80 percent [product ramps] from last year was an unusually high percentage for us. The number of ramps was unprecedented in that we had new products in every category. We feel great to have delivered so many products for the holiday season, and our customers have expressed joy over it.

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5:43 pm: Oppenheimer: For gross margin in December quarter, we were about 260 basis points ahead of our guidance and about half this difference was driven by lower product & transitory costs. We also saw a higher mix of iPhones, weaker dollar, higher leverage on revenue. we expect gross margins to be about 110 basis points lower sequentially.

5:40 pm: Oppenheimer: With the iPad mini, it’s hard to know. We could not make enough in the quarter, we were constrained every week. Customers love the mini, we wish we could have made more.

5:38 pm: Cook: In terms of Maps, we’ve made a number of improvements to Maps since the introduction of iOS 6 in september and we’ll roll out more improvements across the rest of the year.

5:37 pm: Shares down 9.64 percent at $464.44.

5:32 pm: [About guidance changes] Oppenheimer: In the past, we provided a single point estimate of guidance that was conservative and we have reasonable confidence in achieving. This quarter and forward, we’re going to provide a range of guidance that we believe we’re likely to report.

5:30 pm: Tim Cook: There have been a lot of rumors about [iPhone production] cuts and so on. I would suggest it’s good to question the accuracy of any kind of rumor about these plans. I would also stress that even if a particular data point were factual, it would be impossible to accurately interpret the data point. There’s just an inordinately long list of things that would make any single data point not a great proxy for what’s going on.

5:28 pm: Tim Cook: If you look at iPhone sales across the quarter, we were very constrained for much of the quarter on the iPhone 5, as we produced more, sales went up, too. The iPhone 4 was also in constraint for the entire quarter and sales remained strong. Apple sold 48.7 percent more iPads, 21.1 percent fewer Macs, 17.5 percent fewer iPods, and 29.1 percent more iPhones.

5:23 pm: Apple shares fall 7.6 percent after hours to $474.99.

5:21 pm: Oppenheimer: We opened a total of 11 new stores in the quarter and exited the quarter with 401 stores, 150 of which were outside the U.S. The average revenue per store was $16.3 million or $1.25 million per store per week, compared to $1.22 million per store per week last year. We hosted a record of 121 million visitors, compared to 110 million a year ago.

5:19 pm: Oppenheimer: The App Store had a record-breaking quarter with over 2 billion downloads in December alone. App downloads have now surpassed 40 billion.

5:18 pm: Oppenheimer: We ended the quarter with about 3.4 million iPads in channel inventory, that’s below our target of 4-6 weeks.

5:17 pm: Oppenheimer: We sold 22.9 million iPads, compared to 15.4 million a year ago. That translates to 1.7 million iPads per week, compared to 1.1 million per week in the year-ago quarter, an average increase of 60 percent.

5:15 pm: Oppenheimer: iPhone sales were driven by tremendous popularity of iPhone 5. We launched in 100 countries by the end of December for the fastest iPhone rollout ever. We ended the quarter with 10.6 million iPhones in channel inventory, within our target range of 4-6 weeks of channel inventory.

5:10 pm: Oppenheimer: We are pleased to sell 47.8 million iPhones. This represents a rate of almost 3.7 million iPhones per week compared to 2.6 million per week in the year-ago quarter. Sequentially, iPhone sales grew 78 percent over the September quarter’s results. We experienced strong iPhone growth in most of our geographic segments, including China, which doubled year over year.

5:08 pm: Peter Oppenheimer: We’ve established a new operating segment in Greater China. We define greater China to include Mainland China, Hong Kong, and Taiwan. For reporting purposes, we’re allocating certain manufacturing costs and variances to our operating segments, instead of including these expenditures in corporate expenditures as we have done in the past. Third, we have realigned the presentation of product information to provide greater visibility of revenue per product category.

5:05 pm: Tim Cook: We’ve now sold well over half a billion iOS devices, including a staggering 10 per second last quarter alone. Everyone at Apple has their eyes on the future, a future driven by the incredible hard work and dedication by the most talented and creative team on earth.

5:04 pm: Shares fall 6 percent to $481.25.

4:30 pm: Apple said it sold 47.8 million iPhones and 22.9 million iPads in the quarter, roughly in line with most estimates. Gross margin came in at 38.6 percent, above the company’s 36 percent forecast and roughly in line with consensus. It sold 4.1 million Macs and 12.7 million iPods.

For the current quarter, the company sees revenue in a range of $41 billion to $43 billion, below the consensus $45.9 billion.

“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” chief executive Tim Cook said. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”