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Apple (NASDAQ: AAPL)
Q4 2024 Earnings Call
Oct 31, 2024, 5:00 p.m. ET

Apple Hits New Highs in Q4 2024 Earnings Report

Key Highlights of Apple’s Performance

• Prepared Remarks
• Questions and Answers
• Call Participants

Overview and Opening Comments

Suhasini Chandramouli — Director, Investor Relations

Good afternoon and welcome to Apple’s Q4 fiscal year 2024 earnings conference call. My name is Suhasini Chandramouli, and I am the director of investor relations. This call is being recorded. Joining us today are Apple’s CEO, Tim Cook, CFO, Luca Maestri, and Kevan Parekh, vice president of financial planning and analysis.

After their remarks, we will welcome questions from analysts. Please be aware that today’s discussion contains forward-looking statements regarding various aspects of our business, including revenue and expenses. These statements involve risks and uncertainties that could lead to actual results differing significantly from our forecasts. For a deeper understanding, please refer to the risk factors discussed in our recent annual report on Form 10-K and the Form 8-K filed with the SEC today.

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Apple does not commit to updating any forward-looking statements beyond the date they are made. Additionally, today’s discussion may include non-GAAP financial measures, which can be found reconciled in our fourth-quarter earnings release available on our Investor Relations website. Now, I’d like to turn the call over to Tim for opening remarks.

Quarterly Performance Overview from CEO Tim Cook

Timothy Donald Cook — Chief Executive Officer

Thank you, Suhasini. Good afternoon, everyone, and thank you for joining us. Today, we report revenue of $94.9 billion, a record for the September quarter, which is up 6% from last year. The iPhone saw growth across all geographic segments, marking a new record for September quarter revenues in this category. Additionally, our services division achieved an all-time revenue high, increasing by 12% year-over-year.

We set September quarter records across the Americas, Europe, and Asia-Pacific, achieving milestones in countries such as the United States, Brazil, Mexico, France, the U.K., Korea, Malaysia, Thailand, Saudi Arabia, and the UAE. Notably, India has shown significant promise, as we reached an all-time revenue high there.

This has been a transformative year for innovation at Apple. In February, we introduced the groundbreaking Apple Vision Pro, which is designed to bring future technology to users now. Then in June, we launched Apple Intelligence, a powerful new personal intelligent system that enhances user experience by combining generative models and personal context.

This week, we made the first features of Apple Intelligence available for iPhone, iPad, and Mac users, including improved writing tools, a more conversational Siri, and enhanced features in the Photos app that help create movies just by typing a description. Look forward to more updates in December, which will introduce additional features and support for more languages.

Turning to our iPhone results, revenues reached $46.2 billion, a September quarter record, reflecting a 6% increase year-over-year. This growth aligns with the launch of Apple Intelligence, marking a new chapter for the iPhone lineup. The iPhone 16 features an advanced 48-megapixel Fusion camera and additional controls, while the Pro model boasts A18 Pro chip technology, improved displays, and superior battery life.

Regarding the Mac, revenues totaled $7.7 billion, up 2% from last year. This week, we revealed the latest generation of Apple silicon—M4, M4 Pro, and M4 Max chips—which offer superior performance for complex tasks.

The new Macs stand ready to be the best personal computers for AI applications upon their release. Customers have various options, from the beautifully designed iMac to the versatile MacBook Air, which now offers double the starting memory, to the powerful Mac mini, our first carbon-neutral model. iPad revenue reached $7 billion, reflecting an 8% increase year-over-year.

The iPad continues to distinguish itself in the market, becoming vital in homes, schools, and businesses. We recently introduced a new iPad mini designed with Apple Intelligence in mind, supporting Apple Pencil Pro. This year has been significant for the iPad, particularly with the iPad Air’s popularity among educators.

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Apple Reports Record Revenue and Exciting New Innovations

As students return to school, Apple is making headlines with the release of the M4-powered iPad Pro and other groundbreaking products.

Wearables and Accessories Show Mixed Results

In the Wearables, Home, and Accessories category, revenue reached $9 billion, reflecting a 3% decline from last year. This quarter marked the launch of the new Apple Watch Series 10, known for its stunning design and enhanced features. It is the thinnest Apple Watch to date, offering unparalleled comfort and the largest, most advanced display yet. The introduction of watchOS 11 includes important health insights like sleep apnea notifications, helping users with this serious but often undetected condition.

Improving Health with AirPods and Vision Pro

Apple takes pride in how its health innovations via the Apple Watch impact users’ lives, with many customers expressing their appreciation. The new AirPods 4 featue active noise cancellation for the first time, setting a new standard in open-ear headphones. Additionally, the AirPods Pro 2 now offer hearing health capabilities that include hearing protection, hearing tests, and features resembling hearing aids, all available through a new software update.

Apple Vision Pro continues to impress users with immersive experiences, such as the short film “Submerged,” showcasing the power of spatial computing. With over 2,500 native spatial apps and 1.5 million compatible apps, the potential for innovation remains vast. Recently, Vision Pro has expanded into new markets including Korea and the UAE.

Services Standout with Record Revenue

In Services, Apple achieved an all-time revenue record of $25 billion, up 12% from the previous year, with record highs across most service categories. Apple TV+ has quickly become a leader in storytelling, amassing over 2,300 award nominations and more than 500 wins. The platform offers a variety of new movies and series, keeping audiences engaged. Live sports streaming, like the MLS Season Pass, enhances the viewer experience during events like the MLS Cup Playoffs.

This month, Apple celebrated 10 years of Apple Pay, which now supports purchases at millions of retailers globally. Enhancements to the Apple Pay experience also include new features for rewards and loan access during checkout.

Commitment to Education and Sustainability

Apple has opened new retail locations and is committed to integrating technology within educational environments. To honor World Teachers’ Day, the company introduced resources designed to make learning enjoyable and effective. Moreover, Apple expanded its education grant program to 100 new schools, providing resources and support to educators and students.

Looking ahead, Apple is determined to meet its target of becoming carbon-neutral by 2030. The recent introduction of the first-ever carbon-neutral Mac and a carbon-neutral option for any Apple Watch highlights significant progress in this area.

Acknowledging Leadership Change

As we conclude this fiscal quarter, Apple’s focus remains on sustainable growth and innovation. Tim Cook recognized the contributions of outgoing CFO Luca Maestri, who has served the company exceptionally over the past decade. Under his leadership, Apple has achieved remarkable growth and customer satisfaction.

Incoming CFO Kevan Parekh is expected to carry forward this legacy as Apple prepares for future challenges and opportunities.

Quarterly Financial Highlights

Apple reported a new September quarter revenue record of $94.9 billion, representing a 6% increase year-over-year. This growth was seen across various markets including the Americas, Europe, and parts of Asia Pacific. Product revenue reached $70 billion, up 4%, driven by strong sales of iPhone, iPad, and Mac products. Customer satisfaction remains high, contributing to a record number of active devices.

Services revenue also reached record levels with broad-based strength around the globe, achieving high double-digit growth. The company maintained a solid gross margin of 46.2%, with product gross margins at 36.3%. Despite operating expenses rising to $14.3 billion, they remained within projected guidance.

Overall, Apple continues to navigate the challenges of a competitive market while pushing forward with innovative technology and a commitment to sustainability.

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Apple Achieves Record-Breaking Revenue and Strong Earnings in September Quarter

The tech giant’s impressive financial results reflect continued demand for its products and services.

Apple recently reported a strong financial performance, with net income reaching $25 billion and diluted earnings per share hitting $1.64, marking a 12% increase compared to the previous year and setting a record for the September quarter. Excluding a one-time charge related to a reversal of the European General Court’s State Aid decision, these figures illustrate an outstanding quarter for the company.

Operating cash flow also set a new September quarter record at $26.8 billion. iPhone revenue reached $46.2 billion, up 6% from last year and setting records not only overall but in key markets such as the U.S., Middle East, Korea, and South Asia. The number of active iPhones in use has surged to an all-time high globally and across all geographic segments.

The September quarter saw many iPhone models among the world’s best-sellers. Kantar’s survey indicated that the iPhone was the leading model in several countries, including the U.S., urban China, the U.K., Australia, and Japan. Customer satisfaction remains high, with a recent study showing 98% satisfaction for the iPhone 15 family in the U.S.

Turning to the Mac, revenue hit $7.7 billion, an increase of 2% year over year, particularly credited to strong sales of the MacBook Air. Apple silicon has been well-received, with reports of 95% customer satisfaction in the U.S. The Mac installed base has reached another record, with nearly half of customers being new to Mac.

iPad revenue totaled $7 billion, up 8% from the previous year. The iPad installed base also hit an all-time high, with over half of new customers trying the product for the first time. Customer satisfaction for the iPad was measured at 97% in the U.S.

In the Wearables, Home, and Accessories category, revenue was $9 billion, down 3% year over year. The Apple Watch also reached a new high, with more than half of the buyers being new users. Its customer satisfaction rate in the U.S. was recorded at 96% according to 451 Research. Services revenue achieved a record $25 billion, growing by 12% year over year, driven by increased engagement among users.

The number of paid subscriptions across Apple’s services has surpassed 1 billion, more than double the amount from four years ago. Continued growth is supported by engaging offerings, including new games on Apple Arcade and successful shows on Apple TV+. This quarter also marked the five-year anniversary of Apple Card, which was ranked the best in customer satisfaction among co-branded credit cards for the fourth consecutive year by J.D. Power.

In the enterprise sector, strong demand for Apple products persists. Notably, NVIDIA’s recent launch of its Mac as a choice program, supported by AppleCare for Enterprise, has led to over 10,000 Macs deployed worldwide. Furthermore, Novartis has chosen the iPhone 16 as the standard device for all its employees.

Apple Vision Pro is gaining traction in enterprise applications. UC San Diego Health is currently the first hospital testing spatial computing apps of Apple Vision Pro for patient surgeries.

Addressing its financial standing, Apple finished the quarter with $157 billion in cash and marketable securities. The company repaid $2.6 billion in debt, while increasing commercial paper by $7 billion, resulting in a total debt of $107 billion and net cash of $50 billion at quarter-end. Apple returned over $29 billion to shareholders this quarter, inclusive of $3.8 billion in dividends and $25 billion through stock buybacks of 112 million shares.

Looking ahead to the December quarter, Apple forecasts total revenue growth in the low to mid-single digits year over year. Services revenue is expected to grow at a similar double-digit rate to that of fiscal year 2024, with gross margins estimated between 46% and 47%.

The board of directors has declared a cash dividend of $0.25 per share of common stock, payable on November 14, 2024, to shareholders on record as of November 11, 2024.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Luca. 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 Michael Ng with Goldman Sachs. Please go ahead.

Michael Ng — Goldman Sachs — Analyst

Hey. Good afternoon. I just have two. The first one is for Tim on Apple Intelligence.

I was wondering if you could just expand a little bit on some of the early feedback to Apple Intelligence, both for iOS 18.1 but also the developer beta so far, and whether you would attribute Apple Intelligence to any of the strong iPhone performance that we’ve seen to date. Thanks.

Timothy Donald Cook — Chief Executive Officer

Thanks, Michael. As I noted in my comments, just this week on Monday, we made the first set of Apple Intelligence features available in U.S. English for iPhone, iPad, and Mac. And this includes things like systemwide writing tools that help you refine your writing, a more natural conversational Siri, more intelligent Photos app, including the ability to create movies simply by typing a description, which is really cool, and new ways to prioritize and stay in the moment with notification summaries and priority messages.

There’s also email summaries and email priority. We’re getting a lot of positive feedback from developers and customers. And in fact, if you just look at the first three days, which is all we have obviously from Monday, the 18.1 adoption is twice as fast as the 17.1 adoption was in the year-ago quarter. And so, there’s definitely interest out there for Apple Intelligence.

As we progress through the quarter, we are looking forward to bringing even more features in December, which will include more powerful writing tools, visual intelligence experiences that enhance Apple Intelligence, integration with ChatGPT, and other features, along with localized English support in countries such as the U.K., Australia, and Canada. It promises to be a busy software quarter ahead.

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Apple’s Leadership Discussion Highlights Future Investment and Performance Insights

New Features and Language Rollouts Coming Soon

As we approach 2025, Apple is set to introduce new languages and additional features starting in April. Company officials express strong optimism about these upcoming enhancements.

Michael Ng — Goldman Sachs — Analyst

Thank you for the update. I’d like to ask you, Luca, to expand on the capital expenditure outlook. Specifically, will investments in private cloud computing impact the historical range of approximately $10 billion annually?

Luca Maestri — Senior Vice President, Chief Financial Officer

Thank you, Michael. As previously mentioned, we utilize a hybrid model for our data centers, combining both our facilities and third-party providers. This makes our capital expenditure (capex) figures not entirely comparable to others in the industry. We are already rolling out Apple Intelligence features and ensuring we have the capacity to support them. Expect to see our capex figures reported in our 10-K for fiscal year 2024. Moving into fiscal 2025, we will continue necessary investments, including for AI-related capex.

Michael Ng — Goldman Sachs — Analyst

Thank you, Tim. Thank you, Luca.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Mike. Please proceed with the next question.

Operator

Our next question comes from Erik Woodring at Morgan Stanley. Go ahead.

Erik Woodring — Analyst

Thank you for having me. Tim, in previous years, you’ve seen iPhone demand exceed supply after the December quarter. As we examine the current iPhone 16 cycle, lead times are shorter, and there are no known supply issues. Have you gained any insights regarding early iPhone demand this year compared to recent years? What can you tell us about customer behaviors such as upgrade, switching, and price sensitivity? Additionally, how might Apple Intelligence affect iPhone 16 sales?

Timothy Donald Cook — Chief Executive Officer

That’s a great series of questions. Regarding Apple Intelligence, we believe it offers a strong incentive for upgrades. It was just released three days ago, and already, version 18.1 has seen double the adoption rate of 17.1, signaling notable interest. Concerning past demand, I don’t recall demand exceeding supply every year. For example, during COVID, disruptions impacted supply. Ideally, we aim to balance supply and demand quickly, ensuring customers aren’t kept waiting. This year, we’ve managed to do so effectively with the iPhone 16 Pro models, which were constrained in October but should soon be in abundant supply. This reflects our ongoing preparations.

Erik Woodring — Analyst

That’s very insightful, Tim. Luca, if I could turn to you, the market is currently buzzing about input costs and how they may influence gross margins. Typically, you guide gross margins up by 50 basis points each December quarter. What is your outlook on component prices, and do you foresee these as supportive of gross margins going forward?

Luca Maestri — Senior Vice President, Chief Financial Officer

Yes, Erik. Gross margins depend on numerous factors, with commodities being a significant player among them. For the upcoming September and December quarters, most commodity prices are expected to decline, although NAND and DRAM prices may rise during this time. We’re pleased with this year’s gross margin performance, attaining historically high levels, and we forecast margins of 46% to 47% for the December quarter. The introduction of new technologies and features contributes to this positive outlook.

Erik Woodring — Analyst

Thank you, Luca.

Suhasini Chandramouli — Director, Investor Relations

Thank you. Let’s move on to the next question.

Operator

The next question is from Ben Reitzes at Melius. Please go ahead.

Ben Reitzes — Melius Research — Analyst

Thank you. I also want to wish Luca well in his next chapter. Now, looking towards the fourth quarter—specifically the first quarter for Apple—regarding the projected mid-single-digit revenue growth, do you expect iPhone sales to outpace this growth? What are your thoughts, especially considering the improving market conditions in China?

Luca Maestri — Senior Vice President, Chief Financial Officer

At this time, we aren’t providing specific guidance for iPhone growth levels. However, we expect total revenue growth in the low to mid-single digits. It’s important to note that Apple Intelligence is being progressively introduced, both in features and languages, alongside recent product launches, such as the new Mac. We are confident in our overall guidance.

Ben Reitzes — Melius Research — Analyst

Thanks, Luca. Tim, I’d like to address some of the market chatter regarding builds and lead times.

Apple’s Optimism Amidst Cautious Financial Outlook

Subheading: Company Navigates Revenue Adjustments While Highlighting Promising Product Launches

Apple is guiding for mid- to low single-digit growth, indicating a level of stability in a volatile market.

During a recent discussion, Ben Reitzes from Melius Research probed Apple CEO Timothy Donald Cook about the company’s outlook. Though there’s some uncertainty in the wider market, Cook’s response reflected excitement about ongoing projects. He emphasized his enthusiasm for Apple Intelligence and the anticipated health features for products like AirPods Pro 2, particularly their hearing aid capabilities. The positive feedback from customers using these features is overwhelming. Cook also noted the upcoming releases of new Macs and laptops, promising a strong lineup as the holiday season approaches. He reassured investors, stating that he prefers to tune out external noise to remain focused on business goals.

Following this, Amit Daryanani from Evercore sought clarity on Apple’s Services segment, which is impressive in its own right with a $100 billion run rate. He asked about the recurring versus transactional revenue streams within the Services portfolio. Luca Maestri, Apple’s CFO, confirmed that the company’s services are experiencing robust growth, particularly in recurring subscriptions, outpacing transactional services. Currently, Apple boasts over 1 billion paid subscriptions, contributing significantly to their overall revenue growth.

Daryanani also inquired about the demand for iPhones in China, expressing concern over the market’s stability. Cook highlighted that Apple’s performance in China remained flat year-over-year but noted improvement from previous quarters, aided by favorable foreign exchange rates. He stated that the company enjoys a strong installed base with high sales of new products like the Mac and iPad. Such growth indicates resilience in a market that has previously posed challenges.

In discussing Europe, Maestri reported double-digit growth of 11%, fueled by strong performance across various segments. He mentioned emerging markets such as Turkey and India, where Apple set an all-time revenue record during the quarter.

The conversation shifted as David Vogt of UBS asked about potential risks to product revenue in the coming quarter. He speculated whether concerns were primarily related to iPhone or Mac sales. Maestri tactfully sidestepped the specifics but reiterated that Apple remains optimistic despite early-stage product rollouts and that many new features are on the horizon.

As Apple faces the end of the year, the company appears poised for growth, sustained by a diverse portfolio and innovative products, even amidst a changing economic landscape.

Apple CEO Discusses Future Demand and Global Rollout of Apple Intelligence

Insights into Changing Demand Patterns and Projected Global Access

Timothy Donald Cook — Chief Executive Officer

Thank you, David. As you’ve noted, our demand patterns are shifting from what we typically observe. During WWDC, we provided a detailed vision of Apple Intelligence, and we’re on track with that rollout. We are pleased with our progress.

Regarding the demand curve, we believe there’s a strong incentive for consumers to upgrade, which is supported by user feedback I’ve received. However, we’re not making forecasts beyond the current quarter.

David Vogt — UBS — Analyst

Thanks, Tim, and good luck, Luca.

Luca Maestri — Senior Vice President, Chief Financial Officer

Thank you.

Suhasini Chandramouli — Director, Investor Relations

Next question, please.

Operator

Our next question is from Wamsi Mohan with Bank of America. Please proceed.

Wamsi Mohan — Analyst

Thank you. Tim, regarding the staggered rollout of Apple Intelligence, can you estimate how much of the global phone market will access this feature in their local language within the next one to two years? What might delay this rollout?

Timothy Donald Cook — Chief Executive Officer

We initiated the rollout with U.S. English on Monday, and we’ll soon release an update for the U.K., Australia, Canada, Ireland, and New Zealand. More languages will be added in April, and we plan to continue expanding throughout the year. Our focus remains on quality and speed.

Wamsi Mohan — Analyst

Understood. As a follow-up, how is Apple preparing for any potential tariffs after the upcoming elections? What measures have been taken to shield from these impacts?

Timothy Donald Cook — Chief Executive Officer

I prefer not to speculate on potential tariffs and will refrain from that topic for now.

Wamsi Mohan — Analyst

Thanks, Tim.

Timothy Donald Cook — Chief Executive Officer

Thank you.

Suhasini Chandramouli — Director, Investor Relations

Next question, please.

Operator

Our next question is from Krish Sankar from TD Cowen. Please go ahead.

Krish Sankar — Analyst

Hi, thanks for taking my question. Luca, I appreciate your support over the years.

My first question involves R&D. With many tech companies investing heavily in AI, does Apple Intelligence necessitate increased R&D spending beyond the current 7% to 8% of sales to seize this opportunity? I have a quick follow-up after that.

Luca Maestri — Senior Vice President, Chief Financial Officer

Krish, we’ve made significant R&D investments in recent years. Our spending has grown substantially. This fiscal year, we’ve redirected some resources towards AI, increasing our focus in that area. While the full impact might not be visible, our commitment to AI has intensified.

Krish Sankar — Analyst

Thanks for clarifying. For my follow-up, with Apple Intelligence being a feature on phones now, do you think it will influence service growth, or is it too early to determine?

Timothy Donald Cook — Chief Executive Officer

Keep in mind that Apple Intelligence also operates on Macs with M Series chips and select iPads, not just iPhones. Regarding your follow-up, we’ve introduced many APIs, enabling developers to utilize them effectively. While I won’t predict the exact impact on services, I believe it will enhance the user experience considerably.

Krish Sankar — Analyst

Thank you, Tim.

Timothy Donald Cook — Chief Executive Officer

Sure.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Krish. We will take the next question now.

Operator

Our next question comes from Samik Chatterjee with JPMorgan. Please proceed.

Samik Chatterjee — Analyst

Thank you for taking my questions. Luca, congratulations on your new role; it has been a pleasure working with you.

For my first question, what can you tell us about the iPhone mix? With Apple Intelligence now a standard feature across the iPhone 16 series and previous models like the iPhone 15 Pro, are you observing any shifts in consumer preferences regarding the iPhone lineup? I have a follow-up question after this.

Timothy Donald Cook — Chief Executive Officer

It’s challenging to answer definitively. However, the introduction of consistent features could potentially affect consumer choices.

Apple’s Leadership Discusses Services Expansion and Cash Management in Latest Earnings Call

Suhasini Chandramouli — Director, Investor Relations

As we examine the consumer response to the iPhone Pro and Pro Max models, we find ourselves limited in October regarding sales insights. It’s still early to determine the exact preference split between these models.

Samik Chatterjee — Analyst

For my follow-up, Tim, recent reports have arisen concerning the DOJ’s investigation into the revenue-sharing agreement with Google. How do you see Apple’s role within this ecosystem, particularly with Safari, in the near future?

Timothy Donald Cook — Chief Executive Officer

I prefer not to speculate on ongoing legal matters and will defer that discussion for another time.

Samik Chatterjee — Analyst

Understood; thank you. I’ll leave it there.

Timothy Donald Cook — Chief Executive Officer

Yes.

Suhasini Chandramouli — Director, Investor Relations

Thank you. Operator, may we proceed to the next question?

Operator

The next question comes from Richard Kramer with Arete Research. Please go ahead.

Richard Kramer — Arete Research — Analyst

Thank you, Tim. I’d like to inquire about the Apple One bundle. Despite having a large user base, services like Music, News, Arcade, and Fitness don’t dominate their respective markets. What can be done to improve this, and are there other services like Pay or advertising that are showing faster growth?

Timothy Donald Cook — Chief Executive Officer

Our perspective is that there is tremendous potential across all these services. We’re dedicated to convincing more customers to take advantage of our offerings, continuing to invest in these services, and adding new features. Remember, we aim to be the best rather than the most prevalent. Some of the services you mentioned are exclusive to our customers, which can affect market reach.

Richard Kramer — Arete Research — Analyst

Thanks, Tim. Now, Luca, regarding your commitment to achieving a net neutral cash position: you’ve maintained around $50 billion in net cash for the past two years. Considering past instances of increased market share through marketing and other initiatives, with your operating expenses at $57 billion, do you see potential for using that cash more effectively, or will we continue to focus on returning cash to shareholders?

Luca Maestri — Senior Vice President, Chief Financial Officer

As you noted, our operating expenses have risen, but we’ve also significantly increased our gross margins, which was unexpected a few years ago. As we plan for the future, we continually explore ways to allocate resources effectively to promote growth. We prioritize our business first, and any excess cash will be returned to shareholders, a strategy that has proven successful.

Richard Kramer — Arete Research — Analyst

Thank you, Luca.

Suhasini Chandramouli — Director, Investor Relations

Thank you, Richard. Operator, please move to our final question.

Operator

Our last question comes from Atif Malik with Citi. Please proceed.

Atif Malik — Analyst

Thank you for the opportunity. We’ve noticed that the specifications between the iPhone 16 Pro and base models appear less distinct compared to previous years. All models feature the new A18 and A18 Pro chips, and there’s been no increase in average selling prices from last year. Are we seeing a shift in strategy here?

Operator

It seems Mr. Malik’s call has dropped.

Suhasini Chandramouli — Director, Investor Relations

Apologies to Atif; we will follow up offline. Thank you all for joining us today. A replay of this call will be available for two weeks on Apple Podcasts and our investor website.

Operator

[Operator signoff]

Call Participants:

Suhasini Chandramouli — Director, Investor Relations

Timothy Donald Cook — Chief Executive Officer

Luca Maestri — Senior Vice President, Chief Financial Officer

Michael Ng — Goldman Sachs — Analyst

Tim Cook — Chief Executive Officer

Erik Woodring — Analyst

Ben Reitzes — Melius Research — Analyst

Amit Daryanani — Analyst

David Vogt — UBS — Analyst

Wamsi Mohan — Analyst

Krish Sankar — Analyst

Samik Chatterjee — Analyst

Richard Kramer — Arete Research — Analyst

Atif Malik — Analyst

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