Apple(US:AAPL)2025-05-01 21:00Financial Data and Key Metrics Changes - The company reported revenue of $95.4 billion, up 5% year over year, and at the high end of the guidance range provided last quarter [5][23] - Diluted EPS was $1.65, an increase of 8% year over year, marking a March record [5][25] - Gross margin was 47.1%, up 20 basis points sequentially, while product gross margin was 35.9%, down 340 basis points sequentially [24][25] Business Line Data and Key Metrics Changes - iPhone revenue reached $46.8 billion, up 2% year over year, driven by the iPhone 16 family [8][26] - Mac revenue was $7.9 billion, a 7% increase year over year, attributed to new MacBook models [10][28] - iPad revenue was $6.4 billion, up 15% year over year, driven by the new M3 powered iPad Air [11][29] - Wearables, Home and Accessories revenue was $7.5 billion, down 5% year over year [12][30] - Services revenue hit an all-time high of $26.6 billion, up 12% year over year, with strong performance across all categories [14][31] Market Data and Key Metrics Changes - The company set quarterly records in various countries, including the UK, Spain, Brazil, and India [6] - The installed base of active devices reached an all-time high across all product categories and geographic segments [23] Company Strategy and Development Direction - The company plans to invest $500 billion over the next four years to expand teams and facilities across several states in the U.S. [6] - The company aims to source over 19 billion chips from various states, with significant production in Arizona [7][8] - The focus remains on innovation and enhancing customer experiences through new product features and services [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to build the world's best products and services despite macroeconomic uncertainties [22] - The company anticipates low to mid-single-digit revenue growth for the June quarter, factoring in potential tariff impacts [38] - Management noted that the impact of tariffs for the June quarter is estimated at $900 million, but future impacts remain uncertain [21][38] Other Important Information - The company returned $29 billion to shareholders, including $3.8 billion in dividends and $25 billion through share repurchases [35] - The dividend was raised by 4% to $0.26 per share, with plans for annual increases [36] Q&A Session Summary Question: Impact of tariffs on iPhone sourcing - Management indicated that the majority of iPhones sold in the U.S. are expected to have India as their country of origin, with Vietnam being the source for most iPads and Macs [42][43] Question: Sell-in and sell-through alignment - Management stated there was no significant evidence of a pull forward in demand due to tariffs, with channel inventory remaining stable [48] Question: Future tariff impacts - Management refrained from predicting future tariff impacts, citing ongoing investigations and uncertainties [53] Question: Performance in China - Management noted a 2% decline in China but highlighted sequential improvement and strong performance in urban areas [56][58] Question: Trade policy uncertainty - Management emphasized ongoing engagement in tariff discussions and the importance of optimizing supply chains [62] Question: Gross margin trajectory - Management discussed the complexities of gross margin management, noting that new product cycles typically have higher costs initially [80][81] Question: Developer behavior in Europe - Management acknowledged the impact of the Digital Markets Act and noted that results reflect some changes in developer behavior [84] Question: Supply chain resiliency - Management highlighted the importance of diversifying supply sources to mitigate risks associated with having everything in one location [91]