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| Text,Name,Company,Position,Year,Month,Date,Ticker,Section,Quarter,Participant_Type,File_Name,Sentence_id,QA_Flag | |
| Highlights:,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44109,Answer | |
| Business and financial performance in Dec. qtr. were exceptional.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44110,Answer | |
| "Set new all-time records for revenue, net income and EPS.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44111,Answer | |
| Revenue $91.8b.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44112,Answer | |
| "Up $7.5b or 9% YoverY, in spite of $1b headwind from FX.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44113,Answer | |
| "Geographically, established all-time revenue records in many major developed and emerging markets, including among others, US, Canada, Mexico, Brazil, UK, Germany, France, Italy, Spain, Poland, Thailand, Malaysia and Vietnam.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44114,Answer | |
| "Products revenue $79.1b. Up 8%, as iPhone returned to growth.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44115,Answer | |
| "Had incredibly strong results in Wearables, where Co. set all-time records for Apple Watch and AirPods.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44116,Answer | |
| "Services revenue grew 17% to new all-time record $12.7b with double-digit growth in every geographic segment, a new all-time records across portfolio.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44117,Answer | |
| GM: 1Q20 38.4%.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44118,Answer | |
| "Up 40 BP sequentially, driven by leverage from higher revenue, in spite of negative 60 BP impact from FX.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44119,Answer | |
| Products 34.2%.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44120,Answer | |
| Up 260 BP sequentially.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44121,Answer | |
| Services 64.4%.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44122,Answer | |
| "Up 30 BP sequentially, driven by favorable mix.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44123,Answer | |
| "Results: Reported tax rate 14.2%. Before discrete items, rate was 16.5%, exactly in line with guidance.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44124,Answer | |
| Favorable one-time item impacted rate by 230 BP.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44125,Answer | |
| "Net income was all-time record at $22.2b, up $2.3b or 11% over last year.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44126,Answer | |
| "Diluted EPS was all-time record at $4.99, up 19%. Operating cash flow was strong $30.5b, improvement of $3.8b over a year ago.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44127,Answer | |
| iPhone: Revenue $56b.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44128,Answer | |
| "Grew 8% YoverY, as Co. saw great customer response to launch of newest iPhones.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44129,Answer | |
| "Set all-time revenue records in several countries, including US, Mexico, UK, France, Spain, Poland, Thailand, Malaysia and Vietnam.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44130,Answer | |
| "Active installed base reached all-time high and is growing in each geographic segments. In US, latest survey of consumers from 451 Research indicates iPhone customer satisfaction of 98% for iPhone 11, 11 Pro and 11 Pro Max combined. Among business buyers planning to purchase smartphones in next qtr., 84% plan to purchase iPhones. Services:",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44131,Answer | |
| "Set all-time revenue record of $12.7b, with double-digit growth in all five geographic segments.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44132,Answer | |
| "Established new all-time records for Apple Music, cloud services, payment services and App Store search ad business, and Dec. qtr. records for App Store and Apple Care.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44133,Answer | |
| Well on way to accomplishing goal of doubling FY16 Services revenue during 2020.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44134,Answer | |
| Already reached that goal on run rate basis with results of Dec. qtr.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44135,Answer | |
| Customer engagement in ecosystem continues to grow.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44136,Answer | |
| Number of transacting and paid accounts on digital content stores reached new all-time high with paid accounts growing double-digits in all geographic segments.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44137,Answer | |
| "Now has over 418m paid subscriptions across services on platform, up 120m from a year ago.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44138,Answer | |
| "At this point, expects to hit goal of surpassing 500m mark already during March qtr.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44139,Answer | |
| "Given tremendous momentum Co. is experiencing across Services offerings, increasing target for paid subscriptions and aims to reach 600m before end of calendar 2020.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44140,Answer | |
| App Store revenue grew strong double-digits. Robust customer demand for in-app purchases and subscriptions.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44141,Answer | |
| "Third-party subscription business grew across multiple categories, and increased almost 40% YoverY. First-party subscription services continued to perform extremely well.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44142,Answer | |
| "Apple Music set all-time revenue record, offering a catalog of over 60m songs to customers.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44143,Answer | |
| "iCloud generated all-time revenue record, growing strong double-digits, while offering customers safe, secure and seamless experience across all their devices.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44144,Answer | |
| It was Dec. qtr. record for Apple Care.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44145,Answer | |
| Mac & iPad: Mac revenue was $7.2b and iPad revenue was $6b.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44146,Answer | |
| "Both products had difficult YoverY comparison due to launches of MacBook Air, Mac mini and iPad Pro during Dec. qtr. a year ago and subsequent channel field.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44147,Answer | |
| "Despite tough compare on demand basis, performance for Mac and iPad was around even to last year.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44148,Answer | |
| "Around half of customers purchasing Macs and iPads around the world, during the qtr. were new to that product.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44149,Answer | |
| Active installed base for Mac and iPad reached new all-time high.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44150,Answer | |
| Most recent surveys from 451 Research measured 93% customer satisfaction rating for iPad from consumers and 92% from businesses.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44151,Answer | |
| "Among consumers and businesses, planning to purchase tablets in March qtr., 78% plan to purchase iPads.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44152,Answer | |
| "Wearables, Home & Accessories: Established new all-time record with revenue of $10b, up 37% YoverY with strong double-digit performance across all five geographic segments and growth across Wearables, Accessories and Home. Set all-time records for Wearables in virtually every market Co. tracks, even as it experienced some product shortages due to strong customer demand for Apple Watch and AirPods during the qtr. Continued to see strong demand for products in enterprise market, as technology solutions enabled businesses to do their best work. 100% of Fortune 500 companies in healthcare sector use AAPL technology in areas like patient experience, clinical communications and nursing workflows. Seeing smaller companies in this sector drive innovation with technology and apps. One example is Gauss Surgical, which uses Core ML in iOS to more accurately estimate blood loss during childbirth and surgery.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44153,Answer | |
| "This helps clinicians have more complete and timely information on whether a patient needs an intervention, which can impact both clinical outcomes and costs.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44154,Answer | |
| "Another example is Butterfly Network, a medical imaging co., which makes handheld ultrasound device that connects to iPhone or iPad to enable clinicians to take an ultrasound anywhere at a cost that is dramatically lower than other solutions on market today.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44155,Answer | |
| "Cash Position: 1Q20-end cash plus marketable securities, $207b. Issued EUR2b denominated green bond, retired $1b of maturing debt and reduced commercial paper by $1b during qtr., leaving Co. with total debt $108b.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44156,Answer | |
| 1Q20-end net cash $99b.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44157,Answer | |
| Maintains target of reaching a net cash neutral position over time.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44158,Answer | |
| Returned nearly $25b to shareholders during Dec. qtr.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44159,Answer | |
| "Began $10b accelerated share repurchase program in Nov., resulting in initial delivery and retirement of 30.4m shares.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44160,Answer | |
| Repurchased 40m AAPL shares for $10b through open market transactions.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44161,Answer | |
| Paid $3.5b in dividends and equivalents.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44162,Answer | |
| 2Q20 Outlook: Revenue $63-67b. Wider than usual revenue range comprehends uncertainty related to recently unfolding public health situation in China. GM 38-39%. OpEx $9.6-9.7b.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44163,Answer | |
| OI&E about $250m. Tax rate about 16.5%. 10.,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44164,Answer | |
| Others:,Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44165,Answer | |
| "On 01/28/20, Board of Directors declared cash dividend of $0.77 per share of common stock, payable on 02/13/20 to shareholders of record as of 02/10/20.",Summary,Summary,CFO,2020,Jan,28,AAPL,Mgmt,Q1,Speaker,2020-Jan-28-AAPL.txt,44166,Answer | |
| I guess first one for me.,Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44167,Question | |
| "On Wearables, fairly impressive to see it's already a $10 billion business for you guys.",Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44168,Question | |
| Can you just touch on the growth that you see on the Wearables side?,Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44169,Question | |
| How much of the growth do you think is coming from first-time buyers of AirPods or Apple Watch versus folks that seem to be just upgrading the products that they have?,Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44170,Question | |
| "Because it looks to us adoption rates are fairly low in your installed base so there should be a long runway, but love to just understand how you see the growth divided between those 2 buckets.",Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44171,Question | |
| Yes.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44172,Answer | |
| "Amit, it's Tim.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44173,Answer | |
| "If you look at the Apple -- or the Wearables as a category within the Wearables, Home and Accessories revenue, Wearables grew 44%, so it was very strong, as you say.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44174,Answer | |
| The -- both Apple Watch and AirPods did very well in terms of collecting new customers.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44175,Answer | |
| "Apple Watch, in particular, 75% of the customers are new to the Apple Watch, and so it's still very much selling to new customers at this point.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44176,Answer | |
| Perfect.,Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44177,Question | |
| "And I guess, Luca, if you could just touch on gross margins.",Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44178,Question | |
| "The March quarter guide, I think, implies gross margins are flat to actually up 10, 15 basis points.",Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44179,Question | |
| "It's rare for you guys to actually guide gross margins up in March, I think, because you have a fairly high seasonal sales deleverage happening.",Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44180,Question | |
| So what are the offsets that's enabling what looks like a better-than-seasonal guide for gross margins?,Amit Jawaharlaz Daryanani,"Evercore ISI Institutional Equities, Research Division",Senior MD & Fundamental Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44181,Question | |
| "Yes, that's right, Amit.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44182,Answer | |
| "It's about flat sequentially and, by the way, significantly higher on a year-over-year basis.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44183,Answer | |
| "But on a sequential basis, you're right.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44184,Answer | |
| "On one side, we got the loss of leverage from the usual seasonality, but we expect that, that loss of leverage will be offset by better mix and cost savings.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44185,Answer | |
| "Thank you, Amit.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44186,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44187,Answer | |
| That will come from Tom Forte with D.A. Davidson.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44188,Question | |
| Great.,Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44189,Question | |
| So congrats on the launch of Apple TV+.,Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44190,Question | |
| I wanted to know internally how you are gauging success.,Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44191,Question | |
| Is it purely on critical acclaim?,Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44192,Question | |
| "Is it on number of consumers that are using the service, contribution of service revenue, et cetera, et cetera?",Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44193,Question | |
| "Tom, it's Tim.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44194,Answer | |
| We are primarily measuring ourselves on the number of subscribers.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44195,Answer | |
| "As you can tell from the way that we launched the product, we started with a very aggressive price at $4.99.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44196,Answer | |
| "And in addition to that, we have our bundle, where if you buy pretty much any device, you're getting a year for free, and so we're very focused on subscribers.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44197,Answer | |
| "That said, our -- the product itself is about storytelling.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44198,Answer | |
| "And we think if we do that well, then we'll find that there will be some number of those that will also be critically acclaimed and we're seeing that with The Morning Show.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44199,Answer | |
| We're seeing that with Little America and others.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44200,Answer | |
| Great.,Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44201,Question | |
| "And then my second question is, I think you indicated that last month, you started offering consumers the ability to use their Apple Card to buy an iPhone on an installment basis.",Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44202,Question | |
| Can you talk about how that's had an impact on your unit sales for iPhones?,Thomas Ferris Forte,"D.A. Davidson & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44203,Question | |
| "The retail stores did fantastic on iPhone, very strong double-digit growth in iPhone from a year-over-year point of view.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44204,Answer | |
| And one of the factors that enabled that was the -- getting to monthly payments on the Apple Card to make it very simple.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44205,Answer | |
| "Of course, that's U.S.-only at this point, but the U.S. is a very key market for us.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44206,Answer | |
| And so it was an important part of it.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44207,Answer | |
| "Thank you, Tom.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44208,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44209,Answer | |
| "That will come from Shannon Cross, Cross Research.",Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44210,Question | |
| I wanted to go back to revisit China.,Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44211,Question | |
| "Tim, can you talk about what you're seeing in the region -- what you were seeing in the region prior to the health crisis?",Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44212,Question | |
| "And then can you also update us a bit in terms of your manufacturing strategy, dual sourcing, geographic diversification even within the region just so we have some idea of how this will be managed?",Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44213,Question | |
| Yes.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44214,Answer | |
| "Thanks, Shannon.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44215,Answer | |
| "In terms of China, the results from last quarter and then I'll get into the coronavirus second.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44216,Answer | |
| "For the results from last quarter, we had double-digit growth for iPhone in Mainland China, so that was an important change from where we had been running.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44217,Answer | |
| "We also had double-digit growth in Services in Mainland China, and we had extremely strong double-digit on Wearables.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44218,Answer | |
| "And so really, there were a number of different factors.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44219,Answer | |
| "In terms of the things that customers are responding to, iPhone 11 is doing particularly well there.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44220,Answer | |
| "The product has been very well received with its battery life, and the camera is unbelievable.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44221,Answer | |
| "We also, as you probably know, have certain trade-in programs going and financing programs.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44222,Answer | |
| These have also been well-received.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44223,Answer | |
| "And so it's sort of the sum of all of this, and we're attracting quite a large percentage of new customers on products like the Mac.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44224,Answer | |
| "3/4 of the customers buying a Mac in China are new, and nearly 2/3 of the customers buying iPad are new.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44225,Answer | |
| And so it was a terrific quarter.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44226,Answer | |
| We had 3 of the top 4 selling smartphones in urban China according to Kantar.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44227,Answer | |
| "In terms of the coronavirus, as I mentioned earlier, first and foremost, our thoughts are with all of those that are affected across the region.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44228,Answer | |
| "And as I've mentioned, we're donating to groups that are working to contain the outbreak.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44229,Answer | |
| "We're also working very closely with our team and our partners in the affected areas, and we have limited travel to business-critical situations as of last week.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44230,Answer | |
| "The situation is emerging, and we're still gathering lots of data points and monitoring it very closely.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44231,Answer | |
| "As Luca had mentioned, we have a wider-than-usual revenue range for the second quarter due to the greater uncertainty.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44232,Answer | |
| I'll talk about supply chain and customer demand some to give you some color.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44233,Answer | |
| "With respect to the supply chain, we do have some suppliers in the Wuhan area.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44234,Answer | |
| "All of these suppliers, there are alternate sources, and we're obviously working on mitigation plans to make up any expected production loss.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44235,Answer | |
| We factored our best thinking in the guidance that we provided you.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44236,Answer | |
| "With respect to supply sources that are outside the Wuhan area, the impact is less clear at this time.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44237,Answer | |
| "The reopening of those factories after Chinese New Year has been moved from the end of this month to February 10, depending upon the supplier location.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44238,Answer | |
| And we've attempted to account for this delayed start-up through our larger range of outcomes that Luca mentioned earlier.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44239,Answer | |
| "With respect to customer demand and sales, we've currently closed 1 of our retail stores, and a number of channel partners have also closed their storefronts.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44240,Answer | |
| Many of the stores that remain open have also reduced operating hours.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44241,Answer | |
| We're taking additional precautions and frequently deep cleaning our stores as well as conducting temperature checks for employees.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44242,Answer | |
| "While our sales within the Wuhan area itself are small, retail traffic has also been impacted outside of this area across the country in the last few days.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44243,Answer | |
| "And again, we have attempted to account for this in our guidance range that we've provided you.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44244,Answer | |
| I hope that gives you some color.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44245,Answer | |
| "Yes, that was really helpful.",Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44246,Question | |
| "Luca, maybe if you could just touch on, from a gross margin perspective, the commodity pricing environment and availability.",Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44247,Question | |
| "Obviously, there's been some movement on DRAM and NAND.",Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44248,Question | |
| So if you can talk about how you're thinking about inventory levels and managing that going forward.,Shannon Siemsen Cross,Cross Research LLC,"Co-Founder, Principal & Analyst",2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44249,Question | |
| Yes.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44250,Answer | |
| "As I said earlier to the question around the gross margin guidance for the March quarter, we are seeing a benign commodity environment.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44251,Answer | |
| "Most commodities have been declining during the December quarter, and we expect the same to happen in the March quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44252,Answer | |
| "As always and as you probably know, we look at the way these prices move.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44253,Answer | |
| "And at times when we feel it's appropriate, we buy certain commodities in advance.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44254,Answer | |
| And so we will continue that practice as we go through the year.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44255,Answer | |
| "Thank you, Shannon.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44256,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44257,Answer | |
| That will come from Katy Huberty with Morgan Stanley.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44258,Question | |
| "Luca, can you address the modest slowdown in Services growth this quarter, 17% versus 18% in September?",Kathryn Lynn Huberty,"Morgan Stanley, Research Division",MD and Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44259,Question | |
| Which Services categories accelerated versus where did you see some deceleration in the growth?,Kathryn Lynn Huberty,"Morgan Stanley, Research Division",MD and Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44260,Question | |
| "Katy, let me make a couple of comments here.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44261,Answer | |
| "The 17% during the December quarter, we look at it against our fiscal year '19 growth rate, which was 16%, so we feel very good about the results for the December quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44262,Answer | |
| "As Tim and I mentioned during our prepared remarks, it was a very broad-based growth because we grew double digits in Services across all the 5 geographies.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44263,Answer | |
| "We set all-time records for many, many categories, music, cloud, search ads, payment services, December records for the App Store and AppleCare.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44264,Answer | |
| "If you remember, we had set 2 goals for ourselves in the Services segment.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44265,Answer | |
| "First, we set a goal to double our fiscal '16 revenue during 2020, and when we look at it on a run rate basis, we've already achieved that goal with the results for the December quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44266,Answer | |
| We also set a goal to pass 500 million paid subscriptions during 2020.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44267,Answer | |
| "And given that we are already at 480 million at the end of December, we expect to pass that mark during the March quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44268,Answer | |
| And so now we are setting a new target for ourselves for paid subscriptions.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44269,Answer | |
| And so we are now aiming to reach 600 million before the end of calendar 2020.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44270,Answer | |
| So we feel that the Services business is growing incredibly well.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44271,Answer | |
| "Of course, we have launched new services very recently.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44272,Answer | |
| "For example, Apple TV+ just launched in November.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44273,Answer | |
| "And so while these services did not have a material impact in our December quarter results, we expect that over time, these are contributing to the growth of the Services business.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44274,Answer | |
| But we feel very happy with the 17%.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44275,Answer | |
| "Tim, as a follow-up, at some point in the future, Apple will launch a 5G iPhone.",Kathryn Lynn Huberty,"Morgan Stanley, Research Division",MD and Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44276,Question | |
| How big of a demand driver do you view 5G capability in a handset?,Kathryn Lynn Huberty,"Morgan Stanley, Research Division",MD and Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44277,Question | |
| And what's your view as to what the killer app will be from a consumer perspective?,Kathryn Lynn Huberty,"Morgan Stanley, Research Division",MD and Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44278,Question | |
| "We don't comment on future products, and so I'll try to sidestep a bit.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44279,Answer | |
| "With respect to 5G, I think it's -- and we're in the early innings of its deployment on a global basis.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44280,Answer | |
| We obviously couldn't be prouder of our lineup and is -- and are very excited about our pipeline as well and wouldn't trade our position for anybody.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44281,Answer | |
| We'll hear from Kyle McNealy with Jefferies.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44282,Question | |
| "So we're seeing some signs of new spectrum being deployed for 5G deployments and even additional 4G capacity, and it's already having a positive impact for handset upgrades to use that new capacity.",Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44283,Question | |
| Do you get the sense that wireless carriers are getting more incentivized to upgrade handsets to get leverage out of these new network investments?,Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44284,Question | |
| How much might this be helping?,Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44285,Question | |
| And do you think it will continue to accelerate?,Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44286,Question | |
| I think that we've had some great partners not only in the U.S. but also around the world that were really helpful this quarter as partners.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44287,Answer | |
| "And so I think that probably a part of that is the level of investments they have, and then a part of it is probably making sure that those customers stick with them in an environment where there's a lot of trading back and forth.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44288,Answer | |
| So I'm optimistic that it will continue.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44289,Answer | |
| "Okay, great.",Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44290,Question | |
| "And then the comment that you made about capacity in your Wearables division with AirPods Pro and Apple Watch 3, what should we think about the time line of when those capacity constraints might be alleviated?",Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44291,Question | |
| And will they come from capacity additions or the natural workout of kind of unit shipments and something on the demand side?,Kyle P. McNealy,"Jefferies LLC, Research Division",Equity Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44292,Question | |
| I'm hopeful that the Series 3 will come into balance during this quarter.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44293,Answer | |
| "On AirPods Pro, I don't have an estimate for that for you.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44294,Answer | |
| "I just can't predict when at this point where -- we seem to be fairly substantially off there, and we're working very hard to put in additional capacity.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44295,Answer | |
| "Thanks, Kyle.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44296,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44297,Answer | |
| Yes.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44298,Question | |
| "Wamsi Mohan, Bank of America.",Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44299,Question | |
| "Tim, Apple has a very valuable installed base of users.",Wamsi Mohan,"BofA Merrill Lynch, Research Division",Director,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44300,Question | |
| "Can you see a future where Apple can become larger in the advertising market as you build out TV+, given you could have the unique position and ability to drive targeted ads to users without compromising on privacy?",Wamsi Mohan,"BofA Merrill Lynch, Research Division",Director,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44301,Question | |
| I think it's -- I think it is possible to have advertising in a straightforward manner that doesn't encroach on people's privacy.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44302,Answer | |
| I wouldn't want to conjecture about us in that business.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44303,Answer | |
| "I think for the TV+ business, we feel strongly that what that customer wants is an ad-free product, and so that's not our aversion to ads, it's what we believe that the customer wants.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44304,Answer | |
| Okay.,Wamsi Mohan,"BofA Merrill Lynch, Research Division",Director,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44305,Question | |
| "And Luca, can you just clarify if the Services revenue this quarter had any impact of deferrals associated with TV+ at all?",Wamsi Mohan,"BofA Merrill Lynch, Research Division",Director,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44306,Question | |
| And how can you help us maybe size the impact of the amortization of the content cost associated with TV+ as we think about the next couple of years?,Wamsi Mohan,"BofA Merrill Lynch, Research Division",Director,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44307,Question | |
| Yes.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44308,Answer | |
| "So yes, of course, we launched the service, and so there was a very small contribution to revenue from the deferral.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44309,Answer | |
| "And there was also a contribution to revenue from the people, the subscribers that are actually paying for the service.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44310,Answer | |
| "When you think about what goes into the Apple TV+ revenue, at this point, there are 2 components: the paid subscribers, these are the customers that pay for the service and we recognize revenue over the subscription period; and then we've got the what we call the Apple TV+ bundle subscribers, these are the customers that buy an eligible hardware device and redeem the offer for a free year of TV+ services.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44311,Answer | |
| We defer revenue for this offer based on 3 items.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44312,Answer | |
| "The first one is the value of the service that is being provided, the 1-year of Apple TV+.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44313,Answer | |
| "The second one is the number of customers that are eligible for the offer, and the third one is our estimate of the expected number of customers that will redeem the offer.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44314,Answer | |
| "So you need to keep in mind that from our total eligible device sales, you need to make a number of reductions for family sharing, for multiple device purchases and for geographic availability.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44315,Answer | |
| "Also the take rate can also be impacted by the availability of local content, and we also require a payment method on file.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44316,Answer | |
| So this estimate is reviewed quarterly and gets updated based on actual trends of the offer.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44317,Answer | |
| And so these inputs provide us with the amount of revenue that we defer for each device sale that then gets recognized over the 1-year period that the TV+ service is provided.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44318,Answer | |
| "And so when you take the combination of pay subscribers and bundled subscribers, you get the Apple TV+ revenue.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44319,Answer | |
| "Of course, because we launched the service very recently, the amount of revenue that we recognized during the quarter was immaterial to our results.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44320,Answer | |
| "With regard to the cost of the service, of developing the content, we -- essentially, as we incur these costs, we put them on the balance sheet, and then we amortize them over a certain period of time depending on the type of content that we produce.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44321,Answer | |
| We'll hear from Cowen and Company's Krish Sankar.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44322,Question | |
| Congrats on the great results.,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44323,Question | |
| I had 2 questions.,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44324,Question | |
| "First one, Tim, I just wanted to pick your brain a little bit on the overall smartphone market.",Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44325,Question | |
| "There's a general view that when 5G phones come out, they're going to be more expensive due to higher component costs.",Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44326,Question | |
| "But at the same time, it looks like you guys have proven that there is a market for low-cost geographies with phones like iPhone SE.",Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44327,Question | |
| So how do you see these 2 different segments within the smartphone market evolving over the next 1 to 3 years?,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44328,Question | |
| And then I have a follow-up for Luca.,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44329,Question | |
| "Again, I want to stay away from commenting about future products.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44330,Answer | |
| "But generally, I think it's important when you think about 5G is to look around the world at the different deployment schedules.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44331,Answer | |
| And some of those look very different perhaps than what you might be seeing here.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44332,Answer | |
| And so that's very important.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44333,Answer | |
| "In terms of the price, I wouldn't want to comment on the price of handsets that aren't announced.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44334,Answer | |
| Got it.,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44335,Question | |
| "No worries, Tim.",Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44336,Question | |
| And then a follow-up for Luca.,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44337,Question | |
| OpEx as a percentage of sales for March looks like about 15% higher than in your prior quarters.,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44338,Question | |
| "Kind of curious, how much of that, as part of it, is driven by some of your Intel modem asset purchases or TV+ in the OpEx?",Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44339,Question | |
| Or how do we think about it on a go-forward basis?,Krish Sankar,"Cowen and Company, LLC, Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44340,Question | |
| Yes.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44341,Answer | |
| I think we felt good about our OpEx results because they were at the low end of our guidance range.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44342,Answer | |
| "But clearly, we want to make all the necessary investments in the business.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44343,Answer | |
| "And from -- in terms of the new services, not only for TV+ but all the new services that we launched during 2019, this is a period where we're making the necessary investments in advertising and marketing, and that level of investment is reflected in our OpEx results.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44344,Answer | |
| "And also, as you correctly stated, we completed the acquisition of the Intel baseband business during the December quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44345,Answer | |
| And so we had -- we reflected the run rate of the expenses related to that business partially during the quarter after the completion of the transaction.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44346,Answer | |
| "And we -- that is a very important core technology for the company, so we will continue to make all the necessary investments also there.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44347,Answer | |
| "There is a third category of expenses that affected the December quarter and is the fact that our revenue was very strong, and we have certain variable expenses, for example, credit card fees that are associated with higher volume and, of course, impacted our OpEx results.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44348,Answer | |
| "Thanks, Krish.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44349,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44350,Answer | |
| That will be from Mike Olson with Piper Sandler.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44351,Question | |
| "So a slightly different take on an earlier question on Wearables, and that is, what impact do you think Wearables is having on driving people into the Apple ecosystem?",Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44352,Question | |
| "You mentioned 75% of watch buyers are new to the Apple Watch, but are many of them new to Apple overall?",Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44353,Question | |
| "I'm sure a lot of existing iPhone, iPad or Mac users are going to be Wearables customers, but do you think Wearables bring people into the ecosystem to buy other devices in a material way?",Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44354,Question | |
| "I think that -- Michael, it's Tim.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44355,Answer | |
| "With each Apple product that a customer buys, I think they get tighter into the ecosystem because they like -- that's the reason that they're buying into it, is they like the experience, the customer experience.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44356,Answer | |
| "And so from that point of view, I think each of our products can drive another product.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44357,Answer | |
| "I would think in that case, it's more likely that the iPhone comes first, but there's no doubt in my mind that there's some people that came into the ecosystem for the Watch.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44358,Answer | |
| Yes.,Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44359,Question | |
| And then I think you recently mentioned that augmented reality will pervade our entire lives.,Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44360,Question | |
| And I'm wondering if you could share your thoughts about how you think it starts to impact our lives most significantly.,Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44361,Question | |
| "For example, will the inflection point in AR come from gaming or industrial usage or some other category?",Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44362,Question | |
| "In other words, where will the average person kind of first feel the impact of AR on their lives in a significant way?",Michael Joseph Olson,"Piper Sandler & Co., Research Division",MD & Senior Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44363,Question | |
| "I think when you look at AR today, you would see that there are consumer applications, there are enterprise applications.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44364,Answer | |
| "This is the reason I'm so excited about it, is you rarely have a new technology where business and consumer are both -- most see it as key to them.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44365,Answer | |
| "And so I think it's -- the answer is that that's the reason that I think it's going to pervade your life, is because it's going to go across both business and your home life.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44366,Answer | |
| And I think these things will happen in parallel.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44367,Answer | |
| There are already companies that are deep into the enterprise business that are working on applications for the enterprise.,Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44368,Answer | |
| "And of course, you can see -- you can go on the store and see thousands of apps that are ARKit-enabled at this time and with even more coming.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44369,Answer | |
| "Thank you, Mike.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44370,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44371,Answer | |
| That will come from Raymond James' Chris Caso.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44372,Question | |
| "I guess the first question is on gross margins, and you spoke about the favorable mix.",Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44373,Question | |
| Wondering if you could expand on that a little bit.,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44374,Question | |
| "And clearly, iPhone is doing well within the overall mix, growing year-on-year.",Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44375,Question | |
| But if you could talk about what's happening to the mix within iPhone.,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44376,Question | |
| Is that improving as well and also helping margins?,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44377,Question | |
| And is there anything else you would point to with regard to the overall mix in margins?,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44378,Question | |
| Yes.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44379,Answer | |
| "I think that the mix helped us both in Q1, and it's helping us with the guidance for Q2.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44380,Answer | |
| "And as you said, some of it is mix of iPhones.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44381,Answer | |
| "The customer response for iPhone 11, 11 Pro and 11 Pro Max has been exceptional, and that clearly has helped our mix.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44382,Answer | |
| "iPhone 11 was our top-selling model throughout the quarter, every single week of the quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44383,Answer | |
| "And so certainly, better mix within iPhone.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44384,Answer | |
| "The other point that I'd like to point out is that as we move from Q1 to Q2, the proportion of revenue coming from Services increases versus the holiday quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44385,Answer | |
| "And given the fact that Services are accretive to gross margin for the company, we end up getting a better mix from Services as well.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44386,Answer | |
| Okay.,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44387,Question | |
| "And I guess a follow-on question with regard to OpEx, and it has been growing at a faster rate than revenue for, I guess, largely over the last 3 years or so.",Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44388,Question | |
| Can you set us some expectation with regard to when you get a return on that investment?,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44389,Question | |
| I understand there are new investments that are happening now.,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44390,Question | |
| But how should we think about potential leverage going forward?,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44391,Question | |
| Is there a point in time where the OpEx spending tend to level off and you get some return on that?,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44392,Question | |
| Or is it just a function of faster revenue growth in the future?,Christopher Caso,"Raymond James & Associates, Inc., Research Division",Research Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44393,Question | |
| "Well, I would start by saying that our expense to revenue ratio is incredibly competitive relative to other companies in our sector.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44394,Answer | |
| "There are years when our OpEx grows faster than our revenue, but we've also had years in the recent past where the opposite has happened.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44395,Answer | |
| We continue to believe that we have a lot of great opportunities in front of us.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44396,Answer | |
| "And just if you look at this past year, we launched many new initiatives, for example, on the Services front, which we want to support with the appropriate level of investment, not only marketing and advertising but also in R&D.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44397,Answer | |
| "As I mentioned earlier, we closed the acquisition of the Intel baseband business because we think it's a very important strategic core technology for the company going forward.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44398,Answer | |
| "And I think from the results that you've seen during this quarter and the guidance that we provided during -- for the March quarter, I think we're doing a pretty good job at balancing the level of investments that we are making on the expense front with the level of returns that we get, both in terms of revenue and in terms of profitability that we're getting.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44399,Answer | |
| "Our net income, for example, was up 11% during the December quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44400,Answer | |
| Thank you.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44401,Answer | |
| "Can we have the next question, please?",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44402,Answer | |
| That will come from Samik Chatterjee with JPMorgan.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44403,Question | |
| Just wanted to kind of ask on the iPhone revenue growth and definitely good to see it return to growth.,Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44404,Question | |
| "Based on the velocity or momentum you're seeing for the products exiting the quarter, how comfortable are you feeling about sustaining growth in iPhone revenues through the year?",Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44405,Question | |
| And I have a follow-up.,Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44406,Question | |
| "We have a practice of forecasting the current quarter, and so we've given you the range that we expect for the current quarter and really don't give a range beyond that.",Timothy D. Cook,Apple Inc.,CEO & Director,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44407,Answer | |
| Okay.,Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44408,Question | |
| "So if I can just maybe then follow up in terms of, obviously, you've returned to growth in most of the regions you report.",Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44409,Question | |
| "One of the regions that are declining is Japan, so if you can share your thoughts on what actions you need to take there to return that segment -- that geography to growth.",Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44410,Question | |
| And what are the product trends there?,Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44411,Question | |
| What's probably the headwind that's kind of limiting growth there?,Samik Chatterjee,"JP Morgan Chase & Co, Research Division",Analyst,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44412,Question | |
| Yes.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44413,Answer | |
| "So Japan was down 10% during the December quarter, was primarily due to iPhone performance, which was challenged because there were some regulatory changes that took effect on the 1st of October, where essentially, the regulators decoupled the mobile phone pricing from the 2-year contracts and are capping the maximum amount of carrier discounts that can be made.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44414,Answer | |
| "At the same time, I would say, within a more difficult macro environment, iPhone did incredibly well during the quarter.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44415,Answer | |
| 6 of the top 7 selling smartphone models in Japan during the December quarter were iPhones.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44416,Answer | |
| So it was a very strong performance by iPhone in a difficult environment.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44417,Answer | |
| "Also, in Japan, we had very strong double-digit growth from Services, stronger than company average, and very strong double-digit growth in Wearables, also stronger than company average.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44418,Answer | |
| So we feel very good.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44419,Answer | |
| Japan is a country where it's starting to -- we've had great success.,Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44420,Answer | |
| "The customers are very loyal and very engaged, and we have a very strong position there, and we feel we have a very good momentum.",Luca Maestri,Apple Inc.,CFO & Senior VP,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44421,Answer | |
| "Thank you, Samik.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44422,Answer | |
| "A replay of today's call will be available for 2 weeks on Apple Podcasts, as a webcast on apple.com/investor and via telephone.",Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44423,Answer | |
| The numbers for the telephone replay are (888) 203-1112 or (719) 457-0820.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44424,Answer | |
| Please enter confirmation code 6826206.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44425,Answer | |
| These replays will be available by approximately 5 p.m. Pacific Time today.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44426,Answer | |
| Members of the press with additional questions can contact Kristin Huguet at (408) 974-2414.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44427,Answer | |
| Financial analysts can contact me with additional questions at (669) 227-2402.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44428,Answer | |
| Thank you again for joining us.,Tejas Gala,Apple Inc.,IR Contact,2020,Jan,28,AAPL,Q/A,Q1,Speaker,2020-Jan-28-AAPL.txt,44429,Answer | |
| "Again, that will conclude today's conference.",Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44430,Question | |
| Thank you all for your participation.,Operator,Operator,Operator,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44431,Question | |
| "Thomson Reuters reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes.",Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44432,Question | |
| "In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items.",Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44433,Question | |
| Such forward-looking statements are based upon current expectations and involve risks and uncertainties.,Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44434,Question | |
| "Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings.",Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44435,Question | |
| "Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized.",Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44436,Question | |
| "THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATIONOF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TOPROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS,OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS.IN",Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44437,Question | |
| NO WAY,Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44438,Question | |
| DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHERDECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR INANY EVENT TRANSCRIPT.,Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44439,Question | |
| USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'SCONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFOREMAKING ANY INVESTMENT OR OTHER DECISIONS.,Disclaimer,Disclaimer,Disclaimer,2020,Jan,28,AAPL,Q/A,Q1,Analyst,2020-Jan-28-AAPL.txt,44440,Question | |