AllThingsD » liver transplant

Apple’s Insanely Great Quarter: 3.05 Million Macs, 7.4 million iPhones Sold

John Paczkowski — Mon, 19 Oct 2009 20:37:07 +0000

Apple’s September quarter saw, among other things, the release of Snow Leopard, the latest upgrade to its OS X operating system and the first public appearance of CEO Steve Jobs, who’d been on a medical leave of absence for a liver transplant. It was also the first full period since the company launched the iPhone 3GS, in late June.

No wonder it was a blowout quarter.

After market close Monday, Apple reported a fiscal fourth-quarter profit of $1.67 billion, or $1.82 a share, on revenue of $9.87 billion. That topped the estimates of analysts surveyed by Thomson Reuters, who’d expected the company to earn $1.42 a share on revenue of $9.2 billion.

The company sold 3.05 million Macs during the quarter, a 17 percent increase over last year. It sold 10.2 million iPods, an eight percent decline from the year-ago quarter.

And iPhones? Apple (AAPL) sold 7.4 million of those–seven percent more than during the same period last year. So much for those supply-chain issues that some analysts warned might undermine iPhone sales.

“We are thrilled to have sold more Macs and iPhones than in any previous quarter,” said CEO Jobs. “We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.” [Editor's Note: "...really great new products"--is that code for a tablet?]

Apple shares, which closed at $189.86 today, are spiking as I write this. At $203.90, they’re up more than seven percent in extended trading.

Looking ahead to its fiscal first quarter, Apple estimates it will earn between $1.70 and $1.78 a share on revenue in a range of $11.3 billion to $11.6 billion. That’s comically lower than the $1.91 a share on $11.45 billion in sales that analysts are forecasting. But as today’s results clearly demonstrate, Apple subscribes to the underpromise-and-over-deliver school of guidance theory, so there’s likely little cause for concern.

So, to recap: Apple sold more Macs and more iPhones than in any previous quarter in the company’s history. Before the holiday quarter. And in midst of the worst economy we’ve seen in 50 years.

Notes From the Earnings Call:

Apple COO Tim Cook and CFO Peter Oppenheimer are handling the earnings call. CEO Steve Jobs will not be attending.
Oppenheimer says this was Apple’s second-highest quarterly revenue ever. Highest-ever operating margin. “We are thrilled with these record-breaking results, particularly given the economic environment around us.” Obviously.
Macs are showing “fantastic momentum,” says Oppenheimer. Sales have outpaced the market in 19 of the past 20 quarters. Quarterly sales were up 17 percent; portable sales, 35 percent. Interesting: 42 percent growth in Asia.
Moving on to iPods: Sales were down to 10.2 million from 11 million a year ago. But iPod touch sales doubled. MP3 market share in the U.S. is now more than 70 percent (according to NPD, I think).
iPhone sales were up seven percent. Apple will begin selling iPhones in China later this month. More than 85,000 apps in App Store. Two billion downloads.
Apple opened 15 new stores during the quarter. Now has 273. Will soon open first two stores in France, including one at the Louvre.
Moving on to the Q&A. Asked about those iPhone 3GS supply issues I mentioned earlier, Cook acknowledges that demand did outstrip supply in a number of countries. But the situation improved “markedly” in September. How are things looking for China? Cook: “I would have liked to have had more, honestly, because we were still short in some countries at the end of the quarter.”
Apple is obviously very excited about the iPhone’s impending debut in China. “There’s a good opportunity, and we’re really excited to get started,” says Cook. “It’s the largest market in the world in terms of total phones.”
No comment on the broader economy. “We just spend our time projecting our business and leave the economy to the economists.”
Does Apple worry about iPhone rivals? Android? Not really, says Cook. “We feel very good about suiting up and competing against anyone.” Our competitors are still trying to catch up with the first iPhone, he adds.
Snow Leopard? Cook says the company’s been “pleasantly surprised” by sales of Apple’s latest OS.
How does Apple benefit from carrier-exclusivity iPhone deals? Cook says carriers with exclusivity deals are willing to invest more in the platform and that means greater innovation. Visual voicemail is an example of that. That said, he adds, “We’ve found no lack of people wanting to sell iPhones, frankly.”
International store revenue up more than 20 percent, on average.
More on iPhone supply issues. Cook insists this is not a component issue, though he notes that silicon can sometimes be hard to get. “We feel good about our position now.”
And still more on iPhone supply issues: How many iPhones would Apple have sold if it had an adequate supply? Impossible to say, really, Cook says, adding that 3GS units were in short supply virtually everywhere in September.
Enterprise demand for the iPhone is very strong. It’s either being deployed or already in use at some 50 percent of Fortune 100 companies. Same with Europe and the FT 100. Widely used in higher ed and government as well.
But perhaps not widely enough. Asked about institutional sales, Cook says Apple isn’t seeing much stimulus funding. The company’s worried about state spending. Says Cook, “We may see more this quarter, but it’s too early to tell.”

Jobs: "I'm Vertical, Back at Apple and Loving Every Day of It"

John Paczkowski — Wed, 09 Sep 2009 16:52:33 +0000

Leave it to Steve Jobs to upstage his own products.

Rumored by some analysts to be a nonevent, Apple’s invitation-only music gathering today is already proving quite eventful. Audience members expecting Apple (AAPL) exec Phil Schiller to quarterback today’s proceedings were given a welcome surprise when CEO Steve Jobs took the stage in his first public appearance since his liver transplant surgery.

He was given a standing ovation.

So how does he look? Obviously, he’s still quite thin, but from where I sit–which is admittedly near the back of the hall–he appears healthy…but gaunt. And that Willy Wonka charisma of his is back in full force. Certainly, he looks reasonably good for someone who just underwent a liver transplant. And how long does it take to regain 60 pounds anyway? Job’s isn’t De Niro in Raging Bull….

[ See post to watch video ]

Anyway, it’s great to see Jobs onstage again. He speaks quietly and it’s hard to tell if his voice is scratchy or if he’s just humbled by what he’s about to say: “As some of you know, five months ago I had a liver transplant. I now have the liver of a mid-20s person who died in a car crash and was generous enough to donate their organs. I wouldn’t be here without such generosity, so I hope all of us can be as generous and elect to be organ donors. ..I’d like to take this moment to thank everyone in the Apple community for their support. Thanks as well to Tim Cook and everyone at Apple. They really ran the company very ably during that time. … So I’m vertical, back at Apple and loving every day of it….”

Jobs quickly moves on to the announcements of the day. First up: iPhone 3.1, which now offers a Bluetooth Voice control and Genius feature and supports ringtones sold via the iTunes Store for $1.29. 3.1 is available today as a free download.

Live from Apple’s “Let’s Rock” Event

iPod Updates, Games, Nano Video Cameras

iTunes 9, iTunes LP, Home Sharing, Genius Mixes

Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”

Event Photos by Adam Tow

Jobs: "I'm Vertical, Back at Apple and Loving Every Day of It"

John Paczkowski — Wed, 09 Sep 2009 16:52:33 +0000

Leave it to Steve Jobs to upstage his own products.

He was given a standing ovation.

[ See post to watch video ]

Live from Apple’s “Let’s Rock” Event

iPod Updates, Games, Nano Video Cameras

iTunes 9, iTunes LP, Home Sharing, Genius Mixes

Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”

Event Photos by Adam Tow

Here It Comes. But What Is It, Exactly? Apple Plans Keynote Event for September.

Peter Kafka — Thu, 13 Aug 2009 16:28:09 +0000

Time to get the rumor mill kicked into high gear: Multiple music industry sources say Apple executives have told them the company is planning one of its famed keynote events for the week of Sept. 7.

But in true Apple fashion, the company has been noncommittal about the exact date of the event and what it will be showing off.

I’ve asked Apple for comment and will report back if the company responds. But the timing makes sense and shouldn’t come as a surprise since Apple (AAPL) has traditionally used the week following Labor Day to show off new products and refresh existing product lines.

Two years ago, for instance, Apple introduced the iPod touch, which has since become a key part of the company’s arsenal. Last year, the event featured less substantial changes, like an overhaul of the iPod Nano.

Given that Apple has tipped off music industry executives, it’s a fair bet that the event will incorporate music in some way. Perhaps it will show off the new “Cocktail” format that Apple has been working on, which bundles full-length albums with other goodies like album covers and interactive bells and whistles.

But unless Apple unveils its so-called iTablet, a touchscreen device that’s supposed to be a cross between an iPhone and a full-fledged MacBook laptop computer, there are going to be a lot of disappointed Apple acolytes.

The other big appearance the Apple faithful will be looking for will be Apple CEO Steve Jobs, who hasn’t made an official public appearance since a keynote presentation last October.

During Apple’s September 2008 keynote, Jobs took time to dismiss reports that he was in failing health. But in January, Jobs said a “hormone imbalance” required him to step away from day-to-day leadership at the company, and news later surfaced that Jobs had undergone a liver transplant last spring. He’s been officially back at work since late June.

SEC Won't Let Steve Be

John Paczkowski — Wed, 08 Jul 2009 16:09:04 +0000

What happened between Apple’s January 5 disclosure of Steve Jobs’s “hormonal imbalance” and its January 14 announcement that the CEO would be taking a six-month leave of absence? That’s the focus of an ongoing Securities and Exchange Commission probe into Steve Jobs’s health, an investigation that seems to, well, be going nowhere.

People familiar with the matter tell Bloomberg that Apple’s handling of the matter remains under scrutiny and that company directors Art Levinson and Bill Campbell had been briefed by Jobs’s doctors on his medical condition at the time of the January disclosures, but little else.

Now, the path from “Steve is suffering from a common bug” to “a hormone imbalance has been robbing Steve of the proteins his body needs to be healthy” to “Steve has undergone a liver transplant” is obviously something of an eyebrow-raiser. But whether it was material to Apple’s business and therefore required disclosure isn’t clear. After all, Apple (AAPL) did just fine while Jobs was on sabbatical; the debut of new Macs, iPods and iPhones is testament to that. Beyond that, there’s this: Apple’s stock posted a 59 percent gain while he was away.

“The issue is not going to be whether they needed to disclose the medical records,” James Cox, a securities law professor at Duke University, told Bloomberg. “It’s going to be whether they monitored the disclosures about his health, in relation to investor expectations that Apple would continue to be led by Steven Jobs….[Apple] did fine. Do you need to say more than, ‘Our CEO has health problems and he’s out on leave?’ The question I think the SEC is looking at is whether it’s material.”

SEC Won't Let Steve Be

John Paczkowski — Wed, 08 Jul 2009 16:09:04 +0000

Jobs Back on the Job, Says Apple

John Paczkowski — Mon, 29 Jun 2009 20:47:12 +0000

[ See post to watch video ]

Who's Been Sitting at My Desk? Schiller!

John Paczkowski — Mon, 29 Jun 2009 17:17:10 +0000

Apple CEO Steve Jobs has officially returned to work after a six-month medical leave during which he underwent a liver transplant.

“Steve Jobs is back to work,” Apple (AAPL) spokesman Steve Dowling told Digital Daily, confirming what many in Silicon Valley began to suspect last week after Jobs popped up in a company press release. “He is at Apple a few days a week and working from home the other days. We’re glad to have him back.”

As are investors, no doubt. “[This] should give investors confidence in Apple’s three-to-five year road map,” said Piper Jaffray analyst Gene Munster. “Having Steve Jobs back means they got the visionary back.”

Who's Been Sitting at My Desk? Schiller!

John Paczkowski — Mon, 29 Jun 2009 17:17:10 +0000

Apple CEO Steve Jobs has officially returned to work after a six-month medical leave during which he underwent a liver transplant.

Steve Jobs Has "Excellent Prognosis"

John Paczkowski — Wed, 24 Jun 2009 10:30:53 +0000

Apple CEO Steve Jobs recently underwent a liver transplant and “has an excellent prognosis,” a Memphis, Tenn., hospital has confirmed.

In a statement issued late Tuesday, Dr. James D. Eason, the chief of transplantation at Methodist University Hospital Transplant Institute in Memphis, said that Jobs did in fact receive a new liver at his transplant facility and is now recovering well. He also dismisses speculation that the Apple CEO’s wealth and celebrity may have afforded him early access to the organ, noting that Jobs qualified for the donor liver when he did because he was the sickest patient of his blood type at the time it became available. Below, the statement in full:

James D. Eason, M.D., program director at Methodist University Hospital Transplant Institute and chief of transplantation confirmed today, with the patient’s permission, that Steve Jobs received a liver transplant at Methodist University Hospital Transplant Institute in partnership with the University of Tennessee in Memphis.

Mr. Jobs underwent a complete transplant evaluation and was listed for transplantation for an approved indication in accordance with the Transplant Institute policies and United Network for Organ Sharing (UNOS) policies.

He received a liver transplant because he was the patient with the highest MELD score (Model for End-Stage Liver Disease) of his blood type and, therefore, the sickest patient on the waiting list at the time a donor organ became available. Mr. Jobs is now recovering well and has an excellent prognosis.

The Methodist University Hospital Transplant Institute performed 120 liver transplants in 2008 making it one of the ten largest liver transplant centers in the United States. We provide transplants to patients regardless of race, sex, age, financial status, or place of residence. Our one year patient and graft survival rates are among the best in the nation and were a dominant reason in Mr. Jobs’s choice of transplant centers. We respect and protect every patient’s private health information and cannot reveal any further information on the specifics of Mr. Jobs’s case.

Steve Jobs Has "Excellent Prognosis"

John Paczkowski — Wed, 24 Jun 2009 10:30:53 +0000

Apple CEO Steve Jobs recently underwent a liver transplant and “has an excellent prognosis,” a Memphis, Tenn., hospital has confirmed.

James D. Eason, M.D., program director at Methodist University Hospital Transplant Institute and chief of transplantation confirmed today, with the patient’s permission, that Steve Jobs received a liver transplant at Methodist University Hospital Transplant Institute in partnership with the University of Tennessee in Memphis.

Mr. Jobs underwent a complete transplant evaluation and was listed for transplantation for an approved indication in accordance with the Transplant Institute policies and United Network for Organ Sharing (UNOS) policies.

He received a liver transplant because he was the patient with the highest MELD score (Model for End-Stage Liver Disease) of his blood type and, therefore, the sickest patient on the waiting list at the time a donor organ became available. Mr. Jobs is now recovering well and has an excellent prognosis.

The Methodist University Hospital Transplant Institute performed 120 liver transplants in 2008 making it one of the ten largest liver transplant centers in the United States. We provide transplants to patients regardless of race, sex, age, financial status, or place of residence. Our one year patient and graft survival rates are among the best in the nation and were a dominant reason in Mr. Jobs’s choice of transplant centers. We respect and protect every patient’s private health information and cannot reveal any further information on the specifics of Mr. Jobs’s case.

Sometimes, What's Needed Is a Slap

Nitrozac and Snaggy — Mon, 22 Jun 2009 18:41:14 +0000