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• End of conference call.

• Cook: We’ll never stop Apple product rumors / product speculation. I’m glad there is so much interest in Apple products.
• Cook: In these economic periods, where we separate ourselves is by making the best products in the world as opposed to those who do not innovate

• Cook reiterates: “Our North Star is to manically focus on making the very best products.”
• Cook: New iPad ended quarter just over 4 week line in target 4-6 week inventory. Addition of China may challenge supply/demand balance
• Cook: We have been short with MacBook Pro with Retina displays supplies; look to supply/demand balance in August

• Cook: I love India, but I believe that Apple has some higher potential in the intermediate term in some other countries. We are growing in India, but the multi-layer distribution there really adds to the cost of the products.
• Cook: Adoption rate of iPad in education is something I have never seen in any product in history
• Passbook app a precursor to a digital wallet? Cook: No comment. Won’t speculate on where it might take us

• Cook: We are believers in Apple TV and we continue to invest in it. 4 million units is not a small number.
• Cook: Apple TV sold 1.3 million units in Q312, up over 170% YOY; 4 million units sold in fiscal 2012, so far. Still at a level Apple calls “a hobby.”

• 5:45PM EDT: AAPL After Hours: $570.45, -$30.47 (5.07%)

• Cook: We’ve all seen many different tablets and I have yet to see any of them gain what I would call any level of traction so far; most customers feel they’re not looking for a tablet, they’re looking for an iPad. Over 84 million iPads sold in total by end of quarter. 17 million sold in quarter is up 84% YOY
• The $399 iPad 2 did very well. Particularly key in the education K-12 market where it sold about 1 million units in the quarter
• Cook: Channel inventory figures are only for indirect sales; does not include Apple Store online or Apple Retail Stores.

• Cook: Our North Star for the company is to make the very best product and thats more important and overshadows everything.
• Cook: We’re going to stick to our knitting and make the very best products
• Cook: We see China as an enormous opportunity. We grew iPhone sales over 100% in China.

• Oppy: Did not get the benefit of launching new iPad or new Mac portables in CHina during the quarter
• Oppy: Timing of Mac portable release came very late in the quarter
• Oppy: Economy in Europe not doing well; this negatively affected our results
• Oppy: Give what’s going on around us, we’re happy with our quarter. All product lines exceeded what we had factored into our guidance.

• Cook: Carrier tell me that iPhone has many advantages: Churn rate is much less, customers more likely to have a tablet and use shared data plans, iPhone is most data efficient smartphone on the market.
• Cook: We are manically focused on making the very best products in the world
• Cook: Carriers want to provide their customers with what their customers want to buy
• Cook: I will avoid talking about the “product transition.” Our role is to make the very best smartphone in the world

• Cook: 25th consecutive quarter of Mac growing faster than the PC market
• Cook: It’s clear the PC market is weak. Primary factor for lower Mac growth in Q312 is timing of new Mac portable lineup launch with less than 3 weeks remaining in the quarter

• Cook: Incredible anticipation out there for future products, as you would expect given what we have been able to deliver in the past
• Oppy: We could not be happier with our product pipeline.
• Oppy: “Fall transition” is driving most of the decline that we are forecasting in gross margin

• Cook: Europe did not do well which impacted Apple overall results; Greece, etc. especially poor

• Cook: In comparing fiscal Q2 iPhone sales vs. Q3 there is a fairly large channel inventory difference of about 3 million units

• Oppy: “Very successful” iPad 2 at $399 (did not exist in YOY quarter) will impact the ASP of the iPad line
• Oppy: Weekly iPhone sales continue to be impacted by rumors of next-gen iPhone
• Fiscal Q412 guidance is up 20% YOY. Apple not expecting economies in Europe, Brazil, Canada to improve in fiscal Q412

• Cook: We remain really confident and very excited about opportunities in China, including China-specific features
• Cook: New iPad sales not launched during Q312 – just launched recently
• Cook: Up over 100% YOY in iPhone unit sales in China
• Apple did not see anything they would attribute to the economy in China
• $2.2 billion sequential revenue decline due to iPhone unit sales in China (last quarter iPhone launched in China) and normal seasonality
• Tim Cook: 25% growth in Asia/Pacific; greater China represents about 2/3rds of Asia/Pacific
• Oppy: Apple has amazing new products in the pipeline that they will discuss at a later date

• Apple posted their best quarter ever for U.S. education

• $10 billion share buyback to take place over 3 year period and starts on September 30, 2012

• Cash hoard: $117.2 billion, +$7 billion vs. last quarter, $81 billion of which is offshore

• 372 Apple Retail Stores now open.
• Apple Retail Stores: 83 million visitors
• Apple Retail Stores: $4.1 billion revenue.

• 410 million iOS devices sold total all-time, over 45 million iOS units sold in Q312 quarter alone
• Record Mac sales to education; iPad sold just under 1 million units to education, double that of Mac (500,000 units)
• Apple iPad now sold in 97 countries

• 5:07PM EDT: AAPL After Hours: $570.30, -$30.62 (5.10%)

• 14 million downloads of new iTunes U app
• iTunes Store: Over $1.8 billion revenue

• iPod touch continues to account for 50% of total iPod sales

• Apple will release OS X Mountain Lion tomorrow

• Apple CFO Peter Oppenheimer guidance: “Revenue of about $34 billion and diluted earnings per share of about $7.65″

• Dividend payable on August 16, 2012 to stockholders of record as of the close of business on August 13, 2012
• Apple’s Board of Directors has declared a cash dividend of $2.65 per share

• IDC had estimated a 1% contraction of Mac unit sales. Whoops.

• Mac units sold: 4.0 million (+2% YOY)
• iPod units sold: 6.8 million (-10% YOY)
• iPad units sold: 17.0 million (+84% YOY)
• iPhone units sold: 26.0 million (+28% YOY)

• International sales accounted for 62% of the quarter’s revenue
• Gross margin was 42.8 percent compared to 41.7% in the year-ago quarter

• Apple’s highest Q3 revenue and EPS ever.

• Versus revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter
• Quarterly net profit of $8.8 billion or $9.32 per diluted share
• Quarterly revenue of $35.0 billion
• Apple’s fiscal 2012 third quarter ended June 30, 2012
• 4:45PM EDT: AAPL After Hours: $571.37, -$29.55 (4.92%)