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Apple (NASDAQ: AAPL)
Q1 2025 Earnings Call
Jan 30, 2025, 5:00 p.m. ET

Apple Reports Record Earnings in Q1 2025 Amid Global Expansion

Table of Contents:

• Initial Statements
• Analyst Q&A Session
• Participants on the Call

Initial Statements:

Suhasini Chandramouli — Director, Investor Relations

Good afternoon, and welcome to Apple’s earnings conference call for the first quarter of fiscal year 2025. I’m Suhasini Chandramouli, Director of Investor Relations. Today’s call will be recorded. Apple’s CEO, Tim Cook, will speak first, followed by CFO, Kevan Parekh. Afterwards, we’ll open the floor to analyst questions.

Several statements made during this call may involve forward-looking information, covering aspects such as projected revenue, gross margin, and future business outlook. These statements carry risks that could cause actual results to differ significantly from our expectations. For further details, please refer to the risk factors noted in Apple’s most recent annual report on Form 10-K and the 8-K report filed today with the SEC.

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Apple is not obligated to update any forward-looking statements made today, which are only valid as of the date they are expressed. Now, I’ll hand it over to Tim for his opening remarks.

Timothy Donald Cook — Chief Executive Officer

Thank you, Suhasini. Good afternoon, all, and thank you for joining us today. Before discussing our results, I want to express my condolences for the devastation caused by the recent wildfires in Los Angeles. Many of our employees and their families are affected, and we are supporting the relief efforts. Now, let’s look at this quarter’s performance.

Apple reports $124.3 billion in revenue for the December quarter, marking a 4% increase from last year and setting an all-time record. Additionally, our earnings per share also hit a record at $2.40, up by 10% year over year. Notable revenue records were achieved across various countries including the Americas, Europe, Japan, and several regions in Asia Pacific. We’re also seeing substantial growth in emerging markets, with record revenues in Latin America, the Middle East, and South Asia.

In the services sector, we also reached an all-time revenue high, accumulating nearly $100 billion from our services in the past year. I’m proud to share that we’ve set a new milestone with over 2.35 billion active devices. Our recent launch of Apple Intelligence features has been well received, initially available in U.S. English for iPhone, iPad, and Mac, and we’ve since expanded to multiple countries. These features enhance users’ everyday tasks and experiences.

Our upcoming rollout in April will support additional languages including French, German, and others, broadening access to our innovations. Our commitment to Apple Intelligence focuses on improving user experience while maintaining industry-leading security and privacy.

On to our quarterly results, starting with the iPhone: Revenue reached $69.1 billion, an all-time high in various regions. The iPhone 16 lineup has generated excitement among users, showcasing improved battery life and stellar camera capabilities. Sales for the Mac also saw positive growth, with revenue hitting $9 billion for the December quarter, a 16% increase year over year, driven by the latest Mac offerings.

With a strong portfolio, the Mac serves as a platform that empowers users to transform their ideas into reality. Innovative technologies and capabilities like Apple Intelligence continue to distinguish our products in the market.

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Apple Reports Record Revenue and Impressive Growth in Q1 Fiscal Year

During the first quarter of the fiscal year, Apple achieved remarkable financial results, showcasing the strength of its product lineup and services.

Strong Product Performance Driving Growth

Apple’s diverse range of products includes the super-portable MacBook Air, the efficient MacBook Pro, the top-rated all-in-one iMac, and the powerful carbon-neutral Mac Mini. These offerings reflect the unmatched power of Apple silicon.

Revenue from iPad reached $8.1 billion, marking a 15% increase compared to the previous year. The surge in interest for new models, such as the ultra-portable iPad Mini and the sleek M4 iPad Pro, has captivated customers. Users express their appreciation for iPads’ versatility, which supports their activities on the go.

Wearables and Health Innovations Shine

The wearables, home, and accessories segment generated $11.7 billion in revenue. The newly launched Apple Watch Series 10 features advanced displays and a more comfortable design, designed to assist users in achieving their health and fitness goals. Enhancements in watchOS 11 introduce innovative health tools, reflecting Apple’s long-standing commitment to health innovation.

Apple is also advancing hearing health features in AirPods Pro 2 and sleep apnea alerts on Apple Watch, which could potentially help up to one billion people worldwide. Recently, the Apple Vision Pro has expanded to more countries, providing users with a unique spatial computing experience that enhances entertainment and creativity. Director Jon M. Chu revealed how he utilized Vision Pro’s capabilities during the making of “Wicked.”

A Record Revenue for Services

In services, Apple reached an all-time revenue record of $26.3 billion for the December quarter, representing a 14% annual growth. Records were set in the Americas, Europe, and Asia Pacific, as well as a notable achievement in Japan.

Five years after its launch, Apple TV+ has become known for its compelling storytelling, including the premiere of the second season of “Severance” this month. Upcoming releases, like “Formula 1” featuring Brad Pitt, and new shows like “The Studio” promise an engaging year ahead for subscribers. Apple TV+ productions have won over 538 awards from more than 2,500 nominations to date.

Enhancements in Customer Experience

This quarter also introduced a new Find My service for tracking luggage, allowing users to share AirTag location information with major airlines to recover lost items easily.

In retail, Apple celebrated the opening of new stores in China, Spain, and the U.S., along with plans to launch a fifth store in the UAE and an online store in Saudi Arabia this summer. As the company connects with more customers, Apple aims to build flagship stores in Saudi Arabia by 2026.

Personal Stories of Impact

Feedback from customers highlights the profound impact of Apple technology. One customer shared a touching story of how the Apple Watch alerted him to a serious condition in his father, leading to timely medical intervention. Another noted that their new watch helped detect a low heart rate that resulted in a necessary pacemaker.

Such anecdotes fuel Apple’s drive to innovate and emphasize the significance of their work in enhancing customer lives.

Strong Financial Results and Future Outlook

Kevan Parekh — Senior Vice President, Chief Financial Officer

Thanks, Tim, and good afternoon, everyone. I’m here to discuss our impressive results for the first quarter of our fiscal year. We achieved record revenue of $124.3 billion in December, representing a 4% increase year over year, with records set in various geographic regions.

Product revenue totaled $98 billion, a 2% rise fueled by strong sales for iPad and Mac. Our active device install base surpassed 2.35 billion, highlighting our exceptional customer loyalty and satisfaction.

The revenue from services soared to an unparalleled $26.3 billion, growing 14% year over year. We experienced growth across all market segments.

Gross margin companywide reached 46.9%, exceeding our expectations, while products gross margin hit 39.3%. We reported significant net income of $36.3 billion and earnings per share of $2.40, marking a 10% increase annually. Operating cash flow also remained strong, totaling $29.9 billion, despite a $11.9 billion payment in connection with state aid.

Focusing on specifics, iPhone revenue was $69.1 billion, relatively stable compared to the prior year, yet we achieved record revenue numbers in numerous markets, including Canada, Western Europe, and Japan. Notably, customer satisfaction for the iPhone reached 96% in the U.S.

Mac revenue totaled $9 billion, reflecting a remarkable 16% growth year over year, supported by a robust product lineup that includes the new Mac mini.

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Apple Reports Strong Growth and Solid Financial Position in Latest Earnings Call

The latest earnings report reveals positive trends across multiple product lines for Apple, showcasing a strong financial performance.

Mac and iPad Perform Exceptionally Well

Apple’s Mac lineup exhibited impressive growth, driven by increased sales of the latest MacBook Air and MacBook Pro models. The performance surge was consistent, with every geographic segment recording double-digit growth. Innovations in Apple silicon and advancements in the neural engine have enabled users to leverage full AI capabilities with their Macs. The total number of active Mac users has reached a historic high, with double-digit growth coming from both existing upgraders and first-time buyers. Customer satisfaction in the U.S. stands at an impressive 94%.

Similarly, iPad revenue soared to $8.1 billion, marking a 15% increase year-over-year due to the popularity of the new iPad mini and iPad Air. Like Macs, the iPad install base also hit an all-time high, with more than half of recent buyers being new customers. U.S. customer satisfaction for the iPad is exceptionally high at 96%, according to the latest data from 451 Research.

Mixed Results in Wearables and Accessories

In the wearables, home, and accessories segment, revenue amounted to $11.7 billion, representing a slight decline of 2% from the previous year. Despite the minor dip, customers are enthusiastic about the new AirPods 4 and newly introduced hearing health features in the AirPods Pro 2. Although sales were challenged due to comparisons with last year’s Apple Watch Ultra 2 launch, the Apple Watch install base achieved a new high, with over half of its buyers being first-time customers. U.S. customer satisfaction for the Apple Watch is reported at 94%.

Services Revenue Hits New Heights

Apple’s services sector recorded its highest revenue yet, reaching $26.3 billion, which reflects a 14% increase year-over-year. The growth in active devices has also enhanced customer engagement, leading to record highs for both transacting and paid accounts; paid subscriptions grew at double-digit rates. Currently, Apple boasts over a billion paid subscriptions on its services platform.

The company remains committed to expanding its services offerings, including new games on Apple Arcade and updates on Fitness+. Notably, features like Tap to Pay are now operational in 20 markets.

Business Expansion and Adoption in Emerging Markets

In the enterprise sector, adoption of Apple products continues to gain momentum. Deutsche Bank recently adopted the Mac as Choice program for its developers and has chosen the latest MacBook Air as the standard computer for its mortgage lending division. Companies like SAP are utilizing Apple Intelligence to enhance both employee and customer experiences with innovative features such as writing tools and priority notifications.

Growth is also evident in emerging markets. Zomato, a major food delivery service in India, has implemented thousands of Macs to drive innovation within its operations. Additionally, the Vision Pro technology is being leveraged for new applications in enterprises, such as Cisco’s immersive video conferencing solutions.

Strong Financial Position and Future Outlook

Apple ended the quarter with a robust cash and marketable securities position totaling $141 billion. The company repaid $1 billion in maturing debt and reduced its commercial paper by $8 billion, resulting in a total debt of $97 billion. Consequently, Apple’s net cash at the end of the quarter stood at $45 billion.

During this period, over $30 billion was returned to shareholders, which included $3.9 billion in dividends and $23.3 billion through the repurchase of 100 million shares. The company plans to provide updates on its capital return strategy in the upcoming March quarter.

Looking ahead, Apple anticipates steady growth in the March quarter, despite external economic pressures. The company projects total revenue growth in the low to mid-single digits year-over-year and expects service revenue to rise in the low double digits as well. Excluding foreign exchange challenges—expected to impact revenue by 2.5 percentage points—the growth rate will align closely with that of the December quarter. Estimated gross margins are projected to be between 46.5% and 47.5%.

As part of its commitment to shareholders, the board of directors has announced a cash dividend of $0.25 per share, payable on February 13, 2025, to shareholders recorded as of February 10, 2025. With those updates, the call will now transition to questions from analysts.

Suhasini Chandramouli – Director, Investor Relations

Thank you, Kevan. We ask that you limit yourself to two questions. Operator, may we have the first question, please?

Questions & Answers:

Operator

Certainly. We will go ahead and take our first question from Erik Woodring with Morgan Stanley. Please go ahead.

Erik Woodring – Analyst

Thanks for taking my question. Tim, you mentioned that sales of the iPhone 16 models are stronger in markets where Apple Intelligence is available. Could you elaborate on how Apple Intelligence might be influencing iPhone demand and which features users are engaging with the most?

Additionally, I have a follow-up question.

Timothy Donald Cook – Chief Executive Officer

Hi Erik, it’s Tim. We did observe that regions where Apple Intelligence was rolled out showed a marked improvement in the performance of the iPhone 16 family compared to areas without it. Users are actively utilizing features such as Writing Tools, Image Playground, Genmoji, and visual intelligence.

Popular functions also include “Clean Up,” which many customers have enjoyed seeing demonstrated in stores. Keep in mind, our second release of version 18.2 was only active for about two and a half weeks during the December quarter in the U.K. and other English-speaking markets, so we only have preliminary data thus far. However, we are pleased with these early indicators.

Erik Woodring – Analyst

That’s insightful, thank you, Tim. Now, let’s discuss China. Excluding the macroeconomic challenges, what specific headwinds does Apple face there? Are there shifts in customer preferences towards domestic brands affecting sales, or do you believe the absence of Apple Intelligence for the iPhone 16 has slowed replacement cycles?

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Apple Reports Decline in China Sales but Optimism Remains for Future Growth

Timothy Donald Cook — Chief Executive Officer

Our Q1 revenue from Greater China fell by 11% compared to last year. Notably, over half of this decline was due to a shift in inventory levels throughout the quarter. Additionally, we have yet to introduce Apple Intelligence in China.

As previously mentioned, the markets where we have launched Apple Intelligence showed better results than those where it was not available. China remains intensely competitive, which influences these results. On a macroeconomic level, a fiscal stimulus was announced in January that did not impact our December quarter. There were some provincial subsidies during that quarter, but the national initiative was released on January 20th, and it includes several product categories like smartphones, tablets, PCs, and smartwatches, up to a specific price. We anticipate the fiscal stimulus will benefit us, and we will discuss its implications further in our next call.

Erik Woodring — Analyst

Thank you, Tim. Good luck.

Timothy Donald Cook — Chief Executive Officer

Thank you.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Erik. Operator, may we have the next question?

Operator

Our next question is from Ben Reitzes with Melius. Please proceed.

Ben Reitzes — Analyst

Hello, everyone. Tim, I wanted to ask about the impact of lower computing costs on your margins and execution. How do you view the DeepSeek situation in relation to potential benefits? Are there changes in your outlook due to these developments?

Timothy Donald Cook — Chief Executive Officer

In general, any innovation that enhances efficiency is beneficial. Our tight integration of hardware and software continues to support our strategy. We utilize a hybrid model that capitalizes on both device capabilities and private cloud solutions. Our careful approach to capital expenditure remains consistent, and we are confident in this direction.

Ben Reitzes — Analyst

Thanks, Tim. Regarding iPhone innovation, do you think there’s significant potential for future designs, or does the existing lineup represent the path forward?

Timothy Donald Cook — Chief Executive Officer

I believe there is much more innovation in store. I am very optimistic about our upcoming product pipeline, particularly in the smartphone arena.

Ben Reitzes — Analyst

Thank you, Tim.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Ben. Operator, may we have the next question?

Operator

The next question comes from Michael Ng at Goldman Sachs. Please go ahead.

Mike Ng — Goldman Sachs — Analyst

Good afternoon. I have two questions. First, it’s exciting to hear about the record levels of iPhone upgrades, a milestone we haven’t discussed in a long time. What factors contributed to this strength? Did Apple Intelligence play a part?

Timothy Donald Cook — Chief Executive Officer

Thank you for the question. We indeed set a record for upgraders this quarter, with our install base also reaching historic highs. Comparing iPhone 16 to 15 since its launch in September, the 16 has outperformed its predecessor. This indicates strong reasons for customers to upgrade, particularly where we’ve launched Apple Intelligence, showing positive results compared to markets without it.

Mike Ng — Goldman Sachs — Analyst

Thanks, Tim. That’s clear. My second question is about the iPad Pro’s thin design. How has it influenced overall iPad sales, and what insights have you gathered from market research regarding consumer preferences for that form factor?

Timothy Donald Cook — Chief Executive Officer

Great question. The iPad category grew by 15% this quarter. This growth was primarily driven by the iPad Air and the entry-level models, rather than the high-end Pro models. Importantly, more than half of December’s iPad sales went to new customers, suggesting a strong market opportunity.

Mike Ng — Goldman Sachs — Analyst

Thank you, Tim.

Timothy Donald Cook — Chief Executive Officer

Thank you.

Suhasini Chandramouli — Director, Investor Relations

Thanks, Mike. Operator, could we have the next question, please?

Operator

Amit Daryanani from Evercore is next. Please proceed.

Amit Daryanani — Analyst

Good afternoon. I have two questions. Firstly, you’ve mentioned strong growth trends in emerging markets. Can you discuss the sustainability of this growth? Are these markets becoming significant enough to offset declines elsewhere?

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Apple’s Growth in Emerging Markets and Future Financial Outlook

Timothy Donald Cook — Chief Executive Officer

Apple is seeing impressive results in several emerging markets, particularly in India. During the last quarter, India set a record for December, prompting Apple to announce the opening of four new stores there. Notably, the iPhone emerged as the best-selling model in India, which is now the second-largest smartphone market globally and ranks third for PCs and tablets. Given Apple’s relatively small market share in these segments, there is significant potential for growth.

This is just one example of the opportunities available in emerging markets.

Kevan Parekh — Senior Vice President, Chief Financial Officer

Additionally, in emerging markets, we are witnessing double-digit growth in our installed base, particularly for the iPhone. This growth is an encouraging sign.

Amit Daryanani — Analyst

Thank you. I have a question about gross margins for the March quarter. You have indicated that gross margins will remain flat sequentially, which is unusual as they typically increase by about 50 basis points. Can you clarify what the main factors influencing this guidance are? Also, Kevan, is foreign exchange (FX) having an effect on your margin profile for March?

Kevan Parekh — Senior Vice President, Chief Financial Officer

Yes, Amit. We’re expecting gross margins to be between 46.5% and 47.5%, which we find satisfactory. There are multiple factors at play. FX headwinds may impact our revenue growth and margins, but these are expected to be offset by favorable costs and an advantageous shift in our service mix. It’s important to note that the transition from Q1 to Q2, where Q1 typically brings in significant revenue from products, can result in a loss of leverage. Although we face some challenges, we remain confident in our guidance for gross margins.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Amit. Operator, could we have the next question, please?

Operator

Our next question comes from Wamsi Mohan with Bank of America. Please go ahead.

Wamsi Mohan — Analyst

Thank you. Tim, could you elaborate on channel inventory levels in China? Are there other regions where inventory might be elevated? With the recent developments in China, should we expect a smoother progression in inventory levels moving into the March quarter?

Timothy Donald Cook — Chief Executive Officer

I prefer not to predict sales by region for the current quarter. However, looking at channel inventory globally, we feel comfortable with our iPhone inventory levels. Specifically in China, we observed a reduction in channel inventory from the start to the end of the quarter, dramatically influencing our results. Increased sales towards the end of the quarter contributed to this lean inventory position.

Wamsi Mohan — Analyst

Thank you for clarifying that.

Timothy Donald Cook — Chief Executive Officer

You’re welcome.

Wamsi Mohan — Analyst

For my follow-up, your services segment has shown notable growth despite facing various regulatory challenges globally. How should investors assess the potential impacts—either positive or negative—on top-line growth or margins if regulations stabilize?

Kevan Parekh — Senior Vice President, Chief Financial Officer

Just to emphasize, our services business achieved a record 14% growth in the December quarter, with strengths observed across all geographic segments and service categories. This broad success is reflected in the rising engagement levels among our customer base and has resulted in over a billion paid subscriptions across our services portfolio.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Wamsi. Operator, could we take the next question?

Operator

Our next question is from Samik Chatterjee with JPMorgan. Please go ahead.

Samik Chatterjee — Analyst

Hi, thanks for taking my question. Your Mac and iPad products saw impressive double-digit growth recently. Can you comment on the sustainability of this growth trend for both product lines?

I’m also interested in the influence of Apple’s AI initiatives on iPhone volumes, but I’m curious if similar trends are expected for Mac sales, especially given the current discussions around AI in PCs. Thank you.

Timothy Donald Cook — Chief Executive Officer

Indeed, Mac sales increased by 16%, while iPads rose by 15%. This growth was fueled by a strong demand for our new products and the ongoing popularity of the MacBook Air. With multiple new products launched, including an M4-based MacBook Pro, an iMac, and a Mac Mini, we are confident in our engineering. Over the years, our custom silicon has been tailored for demanding workloads. While I can’t predict future developments in these categories, we are pleased with our performance in both Mac and iPad this quarter.

Samik Chatterjee — Analyst

Following up on your earlier remarks about India’s emerging market potential, how much of your supply chain planning there is driven by growth expectations versus a broader initiative to diversify the supply chain? What should we keep in mind regarding your strategy in that specific region? Thank you.

Timothy Donald Cook — Chief Executive Officer

When considering supply chain planning in India…

Apple’s Revenue Insights: Analyzing Trends and Predictions from Recent Analyst Questions

Tim Cook Discusses Manufacturing Strategy and Domestic Growth

Apple engages in both domestic manufacturing and exports, emphasizing the importance of economies of scale for effective in-country production. This dual-focus allows Apple to cater to local demand while tapping into international markets.

Insight from Analysts on iPhone Momentum

The next question came from David Vogt at UBS, who sought clarity on iPhone revenue trends. He noted that, despite Apple’s announcements of positive momentum surrounding Apple Intelligence, revenue from iPhone sales over the past two years has remained steady.

Tim Cook Weighs in on iPhone Growth Factors

Tim Cook responded by highlighting that markets where Apple Intelligence was launched in the first quarter have shown better year-over-year performance compared to those without. He further noted that the new iPhone 16 series is outpacing the iPhone 15 series since its launch.

Gross Margin Insights from Apple’s CFO

Kevan Parekh, Apple’s Chief Financial Officer, provided updates on the company’s services division, reporting a significant gross margin achievement of 75%. He explained that varying margins across different service sectors play a crucial role in overall profitability.

Balance in Services Portfolio Drives Margins

Parekh pointed out that the strong growth across Apple’s services sector reinforces the overall margins. He cautioned that the diverse nature of service businesses, from payment services to iCloud, influences overall performance significantly.

Mac Sales: Innovations Drive Growth

The conversation shifted to notable growth in Mac sales, which increased by 16% year-over-year. Krish Sankar from TD Cowen questioned whether new Mac silicon technology contributed to this surge or if it was primarily due to a replacement cycle.

Tim Cook attributed this growth to the compelling nature of the M4-based products, appealing to both existing Mac users upgrading and new customers switching from other platforms.

Prospects for Product Gross Margins

Krish Sankar further inquired about potential improvements in product gross margins. Kevan Parekh explained that margins are influenced by product launches and mix. He noted significant gains in product margins in the December quarter, alongside favorable market conditions.

Parekh expressed confidence in the ongoing demand for premium products within Apple’s lineup, further optimistic about the upcoming quarter, despite anticipated foreign exchange challenges.

Next Steps in Apple Intelligence Adoption

Finally, Richard Kramer from Arete Research posed a question regarding the acceleration of Apple Intelligence adoption. Subsequent discussions are expected to shed light on strategies to increase user engagement and market reach.

Each of these discussions underscores Apple’s strategic positioning in a competitive market and reflects a nuanced understanding of evolving consumer preferences and economic conditions.

Apple’s Future: Navigating AI Innovations and Market Trends

In a recent discussion, Tim Cook addressed the importance of expanding markets and languages, alongside increasing the number of devices that can support Apple Intelligence. He welcomed the idea that this could be a matter of both time and financial resources.

Tim Cook’s Vision for AI Adoption

Timothy Donald Cook, Chief Executive Officer of Apple, expressed optimism about the mainstream acceptance of Apple’s new features. He pointed out that, currently, only users of the iPhone 15 Pro and iPhone 16 can utilize Apple Intelligence. As more customers adopt these newer models, the usage rate is expected to increase further.

From his personal experience, Cook noted how once users engage with these features, they find it hard to revert to their old ways. He shared that for him, the summarization function for emails, which he gets hundreds of daily, is crucial. Additionally, he mentioned an upcoming rollout of new languages in April, which will expand the user base significantly.

Maintaining Pricing Consistency

Richard Kramer from Arete Research directed a question to Kevan Parekh regarding Apple’s pricing strategy. After years of successes from Luca’s pricing strategies, Kramer asked about consumer price sensitivity and if broader pricing ranges could foster market share growth.

Kevan Parekh, Senior Vice President and Chief Financial Officer, responded by emphasizing Apple’s disciplined pricing approach. He indicated that the company will likely continue with its successful strategy without major shifts in the short term.

Potential Tariff Impacts

Atif Malik from Citi raised concerns about possible tariff effects under a hypothetical “Trump 2.0.” He acknowledged Apple’s resiliency during the previous administration.

Cook replied that Apple is closely monitoring the evolving situation, but there were no specific updates to offer at this time.

Agentic AI and Siri Updates

Malik further inquired about the anticipated upgrade to Siri and whether it could become a standout feature of Apple Intelligence. Cook responded that the definition of a “killer feature” varies among users, but he believes many will find significant value in multiple features offered, including the new Siri updates coming in the coming months.

Device Lifespan and Upgrade Opportunities

Finally, Benjamin Bollin from Cleveland Research Company asked Cook about the average lifespan of Apple devices and the potential for future upgrades, particularly following the company’s strong performance in fiscal 2021.

Cook noted that user behavior varies wildly; some are quick to adopt new technology while others tend to hold onto their devices longer. This presents Apple with a clear opportunity to encourage additional upgrades across various product lines, especially given the strong sales during the COVID-19 pandemic.

In conclusion, Cook and his team remain committed to maintaining Apple’s strong market position while navigating new challenges and opportunities, particularly in technology adoption and pricing strategies.

Call Recap

A replay of this conference call will be available for two weeks on Apple Podcasts or as a webcast on apple.com/investor. Telephone replay information is also provided for interested listeners.

Conference Participants:

• Suhasini Chandramouli — Director, Investor Relations
• Timothy Donald Cook — Chief Executive Officer
• Kevan Parekh — Senior Vice President, Chief Financial Officer
• Erik Woodring — Analyst
• Atif Malik — Analyst
• Benjamin Bollin — Analyst

This article is a transcript of the conference call provided for The Motley Fool. Although we aim for accuracy, there may be errors or omissions, and we encourage readers to conduct their own research.

The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

The views expressed here are those of the author and do not necessarily reflect the views of Nasdaq, Inc.