????Question about gross margins. Component prices and iPhone sales keep the GM high, but the strength of the dollar and price cuts lower the GM.
????Question about China. "China progress has been amazing," says Cook. Greater China represented 2% of revenue in '09, 16% in this quarter. Accounted for $4.5 billion of revenue for the current quarter. Has never seen as many people rising into the middle class. Has quickly become the No. 2 country in terms of revenue for Apple. Also focused on Brazil (sales up 118% YoY). Russia and Middle East looking promising. "In China the sky's the limit."
????Question about supply chain. Cook: We have an outstanding team and a track record that is the best in the industry. "Out approach has always been to do business with as few people as we can so we can be very deep with them." We get great prices and quality.
????Question about the tablet market. Cook reiterates a record quarter for both iPad and Mac. Have seen several competitors come forward. "I think its reasonable to say that none of them have achieved any traction so far." In fact, Apple sales have gone up as new entries came in. "I feel extremely confident in our product pipeline."
????Question about deferring new carriers in Sept. quarter. Pushed new carriers off until after the launch of the iPhone 4S. With that behind them, now including new carriers in advance of the holiday season.
????Question about the size of the tablet market. Cook: Market even better than we thought. Sold 40 million in a cumulative basis. Still believes it will be larger than the PC market. There will be many many more people who can access it. "I think its a huge opportunity over time."
????Follow-up on the iPhone. How many units were pushed off into the next quarter? Cook: We can say how many we would have sold if there hadn't been rumors about the new iPhone. The iPhone 4S "is off the charts." 3 million sold in first weekend. "That's the mother of all uplifts (?)."
????How will the iPad sell in Dec. quarter? Oppenheimer: Expect new records for both iPad and iPhone in Dec. quarter. For Mac, only promised to outgrow the market.
????Question: Is Siri a feature or a new way to interact with devices? Cook: "We see this as a profound innovation." What percentage of use, I don't know, but gut feeling is that it is substantial?
????Question about Thailand: Cook's "heart goes out" to the losses from the monsoons. Several factories that are currently not operable. Our primary exposure is on the Mac. Significant portion of hard drives are made in Thailand. Virtually certain there will be a worldwide shortage of hard drives, but already factored into their $37 billion guidance number.
????Question about Android patent disputes. What's your ultimate objective? Cook: Doesn't want to comment. "But basically, we spend a lot of time and money and resources coming up with incredible innovations. We don't like it when someone else takes those."
????What kind of remedies are you seeking? That's what I don't want to comment on.
