On growth in China
The growth in Asia - Pacific was 25 percent , and that majority of the difference in our sequential growth rate was a result of Greater China , which represents about two - third of our revenue for the region . As we cover for [ the second fourth ] , our Greater China taxation was $ 7.9 billion , and in Q3 , our revenue was $ 5.7 billion . Now , that $ 5.7 billion is 48 percent year - over - year increment , so it still is growing at unbelievable rates . Virtually all of the $ 2.2 billion successive revenue decline was due to iPhone sales in Greater China . About half of that [ $ 2.2 billion ] is attributable to change in epithelial duct inventory , not the fundamental sell - through with the iPhone .
As a admonisher , in the former quartern , in the financial Q2 , we launched the iPhone 4S in China in January . We added China Telecom as a second carrier in March , and , as we proceeded across the quarter , we increase channel inventory to accommodate the sales and to reach our target inventorying of four - to - six weeks . The remainder of the sequent receipts decline is primarily attributable to normal seasonality after the very successful iPhone 4S launch . We did not see an obvious impact in Q3 that we would tie in with the economy in Mainland China . We look at the economical reputation as all of you do and see the trough , but again , we did not see anything that we would attribute to the economy in China .
In terms of iPhones in general in Mainland China , we were improbably proud of with our results ; we were up over 100 percent year - over - year . As you probably know , just last Friday , in [ the fiscal fourth after part ] , we launched our new iPad in China , afterwe conclude the iPad trademark issue , and so sales did n’t gain from iPad the June twenty-five percent in Mainland China . Also , our new portable that we announce at the Worldwide Developers Conferencebegan to ship in Mainland China last week , after we received routine inventory approval , so once again , the June quarter sales did n’t benefit from these product . We rest really positive about our plans and are very mad about our opportunity in China , and are very much reckon forward to incorporate more local services , as you probably saw in our [ WWDC ] announcement of iOS 6 , which will be come up in the capitulation .
On iPhone demand
First of all , at a global grade , it ’s important to understand as you liken our Q2 iPhone sale to Q3 , there ’s a pretty large channel stocktaking difference embedded in that . As you recall , in January , we completed the iPhone 4S rollout in all major land , including China . It was our degenerate iPhone rollout ever . We were also able to get the channel within our target armoury of four to six week by the end of March ; so what that did was it increased sell - in over sell - through by 2.6 million units . In the quarter that we just finish , our sell - in was less than sell - through by 300,000 units . So the final modification in channel inventory across quarter is about 3 million units . I retrieve it ’s of import to understand that to look at the underlying sell - through trend .
In terms of what we see happening in unlike geographics , the U.S. was very strong , running at 47 pct , Japan was strong at 45 per centum . I ’ve already mention Greater China was up 66 per centum , but Mainland China … as I sound out before , it was [ up ] over 100 percent . The geography that did not execute well was Europe — Europe was essentially matt , somewhat positive twelvemonth - on - twelvemonth and that really hampered our total results .
Within Europe — now I ’ll switch from iPhone to talking about perfect revenue levels — we see a marked difference between countries in Europe . The UK was comparatively firm at 30 percent growth , but France , and Greece , and Italy , were particularly pitiful ; Germany was also only a unmarried figure positive emergence for the fourth part . Eastern Europe was strong , materially substantial than Western Europe , but Western European countries push back [ a ] preponderance of receipts in that segment . We are certainly seeing a lag in business in that arena . Fortunately , the U.S. and China , though I realise is get down a circumstances of printing press , we ’re not seeing anything there that we ’d relegate as an obvious economical issue .
I think there ’s a lot of speculation out there . It ’s unmanageable to screen out , but I ’m fairly convinced based on what I ’ve catch that there ’s an incredible anticipation out there for future products , and , as you would require , given what we ’ve been able to rescue in the past , I imagine it ’s a fair amount .
On the Mac
It ’s reset the personal computer food market is weak , based on the latest IDC datum , but honestly , we trust the primary ingredient of our lower growth charge per unit in the Mac area is the timing of our portable annunciation within last quartern . As you know , we announced an altogether new portable lineup that ’s been incredible well received , that was done with less than three weeks remain in fourth . The year - ago comparability , we made a transition in the portable area in February , so we were selling our new lineup for the entire Q3 period .
Prior to [ WWDC ] , our hebdomadal Mac sales were running below the prior year . After [ WWDC ] , the MacBook Pros and MacBook Airs drive year - over - class increase in hebdomadal sell through , and they were to the level that get us back to an overall positive district for the quarter , and our 25th consecutive quarter of growing quicker than the market place . The MacBook Pro with Retina Display was unbelievably well receive , we ended quarter in stockpile , and we still have not caught up with need yet , but foresee doing so next month . Also , to further illustrate the portable point , for the month of June , the NPD information that just came out for the U.S. showed Apple ’s portable share at 25.5 percent and a criminal record 47 percentage of revenue share for the month of June . I would attribute a large amount to what has happened in damage of the timing of our portable promulgation .
On carrier partnerships
I do n’t require to get into specific topics about different carriers , but more often than not I would just say that our role is to make the very best smartphone in the mankind , that has an incredible user experience , far superscript to anything else that customers want to use every twenty-four hour period . I think at the end of the day , the carriers want to supply their client with what their customers want to grease one’s palms . So the most authoritative thing for Apple by far is to continue name the best products in the world , and we are very deeply committed to this , and we are maniacally focused on it . From carriers ’ perspective , I think it ’s also important to remember that the total subsidy that they pay is moderately minor relation to the monthly requital they collect over a 24 - calendar month contract period .
I think many would tell you — they sure enough told me — that the iPhone has several advantages for them over other smartphones . The churn rate are much less , you see aircraft carrier now focusing on shared information plans , and I think an iPhone customer is more potential to have a pad of paper or an iPad . And so , they really value these customers quite a turn . Also , our engineering teams are very sensitive to work with carriers to find the most effective fashion to deal with data , and we think that we ’re the most efficient as far as the market for smartphones that are in an app - rich ecosystem . And so , we ’re going to continue focusing on hold the best intersection . And I think that the carriers will be very motivated to make trusted they provide that to customers . ”
On growth in emerging markets
We ’ve been very focused as you screw on China , because we see it as an tremendous opportunity for us . I ’m very pleased that we were able to grow our iPhone sales over 100 percentage last quarter — I feel very , very good about that . I firm think that people in go forth food market need great products , like they do in developed markets . We ’re get to bond to our knitting and make the best production . We reckon that if we do that , then we ’ve got a very good business forward of us . That ’s what we ’re doing .
Our due north principal for the company in total , that rest across everything that we make , is to make the very best product . That ’s more significant and overshadows all other things . But we do believe by doing that we will have a great business , and I recall our outcome really show that .
I sleep with India , but I believe that Apple has some higher electric potential in the medium full term in some other countries . That does n’t intend that we ’re not put vehemence in India — we are . We have a business there ; that job is originate , but the multilayer distribution there really sum up to the cost of getting product to market . So we ’re going to remain put some energies there , but from my own perspective , in the average condition there will be large opportunities outside of there .
On iPad sales
Keep in mind that the distribution channel inventory is only for the indirect channel . It ’s not used for any direct sale , and direct sale are Apple retail sales , Apple online sales , Apple training sales . I do n’t want to give you specific guidance on iPad sale , but it ’s important to keep that in mind . That ’s not just the case with the iPad , but it ’s the character with all products . I live that there are some company out there that touch to their duct inventory in terms of their perfect sales event , but we do n’t do that because we palpate very strongly that it only supports the groove sales . That ’s how we calculate .
You know , we re - priced the iPad 2 to $ 399 and it did very well in the quarter . The most popular iPad was the Modern iPad , but the iPad 2 did very well . It was particularly pop in the K-12 region that Peter speak about earlier . We sold about 1 million units for the quarter . We have been very strong-growing in this space , and I do n’t see changing that .
In terms of competition , we ’ve all see , I think , many dissimilar tablet — hundreds of them , come to market over the last twelvemonth — and I have yet to see any of them really pull in what I would call any level of traction at all . We have over 225,000 apps that have been optimized for iPad . There ’s an unbelievable experience on the iPad , and I still think the food market very much , or most client feel that they ’re not really looking for a pad , they ’re just looking for an iPad . We ’re going to keep innovating in this blank and keep making great product and keep a very unassailable stage business going forrader . The 17 million iPads was up 84 percent year - over - yr , and we ’ve now shipped over 84 million — this is as of the end of last quarter — iPads , which , if you look at that on a flight rate , it take away us more than doubly as retentive to accomplish that on iPod , and we achieved it in a third less time on iPad than iPhone . So , we feel really , really good about our momentum today .
On iPad pricing
The intellect that we [ turn down the iPad 2 price ] was because we believe that sales would be incrementally large , that there was Mary Leontyne Price snap , and that there was a purchaser that really wanted the proficient product , but needed it to be a little less expensive . I believe that we saw that . I think it did assist our sales . I think it ’s peculiarly avail in K-12 . The adoption rate of iPad in Education Department is something that I ’ve never seen from any technology intersection in history . Usually education tends to be a fairly materialistic initiation in terms of buying , or K-12 does , and we ’re not realize that at all on the iPad . It ’s been a heavy help for us , and I ’m really glad that we did it .
On the Apple TV
We sold 1.3 million [ Apple video ] last one-quarter , this was up over 170 percent class - over - year , and it brings fiscal twelvemonth to 4 million units , which is pretty incredible . It ’s still at a level that we would call it a avocation , but we continue to draw the string to see where it takes us . We ’re not one to keep around product the we do n’t believe in — there are a sight of masses here that believe in Apple TV , so we continue to invest in it and see where it will take us .
We do it because we think it will lead us somewhere , so we ’ll see . But 4 million is not a small turn ; its little relation to iPhones and iPads perhaps , but its not a pocket-sized telephone number , and there ’s a lot of believers in it .
On Passbook as a potential digital wallet
Passbook in oecumenical is a very key feature [ in iOS 6 ] . I retrieve all of us have retrieve that we were catch many passes and many tickets , maybe embarkment passes , etc . , that were scatter all over our iPhones in different apps , so Passbook does an incredible line of pulling all of those into one place — whether it ’s offers or walk or tickets or whatever it may be . It ’s an of import feature of iOS 6 , and I would n’t desire to speculate about where it might take us .
On rumors and speculation
We try very hard to keep our product roadmap secret and secret , and we go to extreme natural action to prove to do that . That , however , does n’t turn back people from speculating or wonder , and we ’ll never do that . So , it ’s a outstanding affair about this country , people can say what they think and so forth . I ’m not going to spend any energy trying to change that ; that ’s just the environment we ’re in . I ’m beaming that the great unwashed want the next affair ; I ’m passing happy about it . There are manifestly quite a few that want what we ’re doing now as well , as see by the amount of intersection that we ’re sell . I ’m not go to put any energy into trying to get hoi polloi to finish ponder . I do n’t imagine it ’s break down to amount to anything .
