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Apple executives speak: On toaster-fridges, financial guidance, and lawsuits

Macworld staff | April 25, 2012
Here are some highlights of what Cook and Oppenheimer had to say to analysts during Tuesday's conference call.

Our real desire here was not about selling more storage. We think Match is a great product and we recommend everybody use it, but it's a paid-for service.

We just really wanted to increase the customer delight from the entire ecosystem and platform of our iOS devices and the Mac, and that's why we've done iCloud; we couldn't be happier that just a couple months into this there's more than 125 million users around the world on iCloud.

On content in iTunes

Oppenheimer: We're actually thrilled with the rate that we're adding content into iTunes. This is something we have to do country by country, so it takes a bit of time to put in place. We have the largest catalogs of songs and movies available anywhere. Over 28 million songs, and this led to almost 1.9 billion dollars of revenue in the March quarter, which was up 35 percent year-over-year. We're thrilled with the progress that we're making in iTunes, and customers love it.

On China

Cook: It was an incredible quarter in China. Revenue was record, was record at 7.9 billion in greater China, which is up over three times year-over-year and brings the first half revenue for greater China to 12.4 billion. That compares to a full year, last year, of 13.3 [billion], so it is mind-boggling that we can do this well.

Part of this was the pent-up demand for iPhone 4S. As you know, we launched mainland China in January of this year. China was not able to get into the Q1 period, so all of that is in Q2. We also have very strong demand for iPad 2. We have not shipped in mainland China yet the new iPad, although we are shipping in Hong Kong.

It's a combination of these things and the halo that both of these products have produced for the Mac is also incredible. Mac was up over 60 percent year-over-year, and that compares to a market rate of growth of about 6 percent.

We have expanded point of sales. On a year-over-year basis, Mac is up 70 percent, but still in only 1,800 [retail stores] for all of greater China. And so there's obviously a lot more opportunity there. iPhone, we're up over 11,000 [stores], which is 138 percent, but 11,000 is a much smaller than we have in the U.S., and obviously China will in the next few years be a bigger opportunity. iPad is only in 2,500 points of sale.

Yes, we've expanded, we've expanded a lot, however, there's a lot of headroom there in our view.

[Any different mix of iPhone sales in China vs the rest of the world?]


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