Highlights From Apple's Earnings Call

Apple detailed its second quarter of fiscal 2013 in an earnings call today. Here are some of the highlights.

iPhone
● 37.4 million iPhones compared to 35.1 million a year ago
● 11.6 million iPhones in channel inventory at end of quarter
● Number 1 spot with 39% share of U.S. smartphone market
● Number 1 spot in Japanese smartphone market for 2012
● Number 1 or 2 in smartphones around the world
● 95% loyalty rate
● JD Power award for the ninth consecutive time
● 30,000 companies distributing iPhone apps for employee use.

iPad
● 19.5 million in the quarter compared to 11.8 million in the year ago quarter
● Sales in Japan and China over doubled year over year
● 4.8 million iPads in channel inventory at end of quarter
● 96% satisfaction rate (ChangeWave)


Mac
● Sold just under 4 million Macs a 2% decline year over year
● IDC estimates that the personal computer market contracted 14%

iPod
● Sold 5.6 million iPods compared to 7.7 million in the year ago quarter

iTunes
● $2.4 billion in revenue
● $4 billion in combined quarterly revenue from iTunes, Software, and Services
● 35 million songs
● 60,000 movies
● 1.75 million iBooks
● 850,000 apps
● 350,000 iPad apps
● $45 billion total cumulative downloads
● $9 billion in total app store developer revenue

Apple Retail
● $5.2 billion in revenue (up 19%)
● 402 stores
● 30 new stores in fiscal 2013
● 20 remodels in fiscal 2013
● 91 million visitors for quarter


Company
● $144.7 billion in cash (up 7.6 billion)
● $12.5 cash flow from operations
● Doubling capital return program to $100 billion by end of 2015
● Share buyback increased to $60 billion
● Increasing quarter dividend to from $2.65 to $3.05 per share a 15% increase payable May 16, 2013
● Apple will access debt markets over time to get access to attractively priced capital, a reduction in overall cost of capital and efficient leverage of very strong balance sheet. Access to debt markets will return approximately $30 billion yearly to shareholders.

Outlook
● Revenue between 33.5 billion and 35.5 billion
● Gross margin between 36% and 37%
● Operating expenses between $3.85 and $3.95 billion
● Other income/(expense) of $300 million
● Tax rate 26%

Questions
● Cook asked if whether Apple has any new products before fall since he eluded to new products coming in fall earlier in the call: "I don't want to be more specific but I'm just saying we got some really great stuff coming in the fall and all across all of 2014."
● Cook asked about phablets. "My view continues to be that iPhone 5 has the absolute best display in the industry. We always strive to create the very best display for our customers. Some customers value large screen size. Others value also other factors such as resolution, color, quality, white balance, brightness, reflectively, screen longevity, power consumption, portability, compatibility with apps, many things. Our competitors have made significant tradeoffs in many of these areas in order to ship a larger display. We would not ship a larger display iPhone while these tradeoffs exist.
● Cook: "One of our areas for growth are potential new categories and we are very excited about those." "I didn't announce a specific time frame."

You can read Apple's earnings release here.

The call will be available for replay here later today.