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Apple lettuce Peter -- -- he is managing director and senior equity research analyst.
At Jefferies Peter you have mentioned before as we look at the stock popped after hours.
That penetration in developing countries is so important because we were already kinda saturated in the United States but there is still a huge market there and -- and elsewhere.
Absolutely we have around four billion now mobile phone subscribers.
There on penetrated by the -- so.
Freely and most those subscribers are in India and China.
So we really have to see that traction and I think this quarter China might actually exceeded US Smartphone and iPhone activation -- -- would have been big move.
Peter what number was most important to you -- -- just talk about the importance of the iPhone.
But if the iPad and -- the unbelievable adoption of that tap what is so important.
Depending on the numbers -- dependent on the analyst's -- it looks a little bit light coming in at about eleven I C eleven point.
Dow eleven million or so watch -- somebody expected thirteen point five million what -- you expecting for the iPad sales.
We were expecting around twelve to were little light there.
But frankly we look at inventory levels -- shipping times.
I think that -- in more than made up in Q2.
And frankly if we look at the guy that they gave us for this quarter and what they came -- -- They'd be -- -- by almost five billion so I think they're guide for next quarter is actually quite conservative usual and I think a very very bullish now.
Now Peter you have a target as we mentioned before 800 dollars for this stock so I imagine that.
Even at current levels it's now trading at 590 after hours it is still screaming buy buy your perspective correct.
We love it here I mean frankly the near term noise and he's the TT activation of -- -- activation of the Paul come capacity issues that's us is all noise really what we're talking about the big product cycle coming up.
The biggest of the iPhone 5 which we expect in September October.
We think that at that point apple have about -- 175 million or just over hundreds of five million.
IPhone subs were to -- fiscal thirteen.
A hundred million if we -- matier upgrade cycle that's a big number the streets at 130.
We they they can demolish that number next year the demolish is an important word there let's get back to Adam Shapiro once again apple under promise and over delivered what else do you see that jumps out.
Well there's one thing -- -- that people wanna pay attention to it's that Mac revenue at five point 07 billion up 2% in cook it the shareholder meeting couple months ago.
Was almost surprised when he talked about the strength of Mac sales given the fact that apple on a lot of computer makers try to get people go to tablets and Smartphones but revenue for -- up 2% -- Yeah -- just like point I don't know -- -- -- pull up Intel Intel chips are in the back Qualcomm chips are in many of the phones that apple makes.
This is the so called eco system of what happens I believe both of those stocks are trading up slightly after market remember it was just last week the Qualcomm came out with its numbers.
People got nervous they got concerned that Apple's numbers might not be as good because of some of the -- yeah Qualcomm numbers.
Here's Intel -- slightly higher again it's Intel chips that are in the the bill -- the power Macs in the air Max and Qualcomm in the -- David.
All right let let us go back to Peter for second Peter.
What about the competition now we have we have seen so many competitive bids by other companies.
To attack iPad both on the on the price and -- -- on the carrier is that a concern for you at all.
Now it really comes down ecosystem frankly as you put these tablets on the table -- costs are -- look a lot like.
It's really what you can do with them what's available.
And Apple's been the best at making that.
The easiest to use and have the best applications.
And as long as developers view -- -- an apple as the biggest partner.
-- be really tough for Google and Microsoft picked capture some marcher.
Apple once again jumping by about 5% in after market session let's get back to -- -- Yeah -- just -- a couple things in -- financial gross margins continue to creep up higher for this company showing good expands management structure.
Gross margins at 47 point 4% compared to 41%.
In the year ago quarter.
Again international sales -- company accounting for 64%.
Of the quarter's revenue.
And Tim Cook saying in one little blurred because ever in each got a quarterly -- that we get from this company get -- -- from the CEO.
Here's what Tim Cook -- -- -- he said quote we're thrilled.
With this sales of over 35 million iphones and almost twelve million ipads in the march quarter the new iPad is off to a great start.
And across a year you're going to see a lot more of that kind of innovation that only apple can deliver that of course needs.
More than likely the iPhone 5 push stocks did June because of the Qualcomm issue and then of course that apple ITV that we're still waiting for weather will be at 20122013.
Product delivery remains to be determined.
Peter let me go back to the activation issue.
AT&T activated about two million phones less.
Then what you thought were there we're gonna activated BI poses had a concern for you.
No if we do it -- a little bit off -- -- We model bike carrier which it takes a little unusual on Wall Street.
And if it showed to us that the US is saturated.
The Smart -- growth is really not gonna come from here.
It really is going to be about the pre -- market in emerging markets and that's the key.
And that that international number staggering when you think about it it's clear that the international consumer wants that brand -- that ecosystem and that.
That's an aspiration will product for them.
Looks like it might pop over 600 again again after hours -- continues to trade up thank you thank you very much Peter -- from Jefferies & Company and we should.
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