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Apple Inc.

AAPL

Wall street consensus:

Ticker:

​Recent Conference Call

### Financial Call Summary for Apple Inc. FQ4 2023 Earnings Call

**Insightful Quote from CFO Luca Maestri:**
"Despite a volatile and uneven macroeconomic environment, our annual revenue was $383 billion. While it was down 3% from the prior year, it grew on a constant currency basis. Our year-over-year revenue performance improved each quarter...and we reported double-digit EPS growth in the September quarter."

**Key Quarterly Business Trends:**

1. **Services Revenue Growth:** Apple continued to see robust performance in its Services sector, reporting an all-time high of $22.3 billion in revenue, a 16% increase. This growth was broad-based, reaching all-time records across multiple categories, signifying enhanced ecosystem engagement and a solid foundation for future expansion.

2. **Global Supply Chain Diversification:** Tim Cook highlighted Apple's commitment to a global supply chain, including investments in the U.S. to support advanced manufacturing. This reaffirms Apple's strategy to navigate through macroeconomic challenges and optimize its supply chain globally.

3. **Emerging Markets Momentum:** Achieving an all-time revenue record in India and robust growth in other emerging markets was notably mentioned. Apple's ability to attract new customers in these regions, despite lower Average Selling Prices (ASPs), underscores its potential for long-term growth and market share gains.

**Critical Analyst Questions:**

1. **iPhone Storage and iCloud Uptake (Goldman Sachs):** Analyst inquired about whether consumer demand shifts towards higher storage models or relies more on iCloud. Tim Cook observed a mix change due to higher starting storage for iPhone Pro models but noted no significant trends elsewhere.

**Response:** Apple sees a different mix, particularly with the iPhone Pro Max starting with higher storage compared to last year. No significant changes were observed beyond this adjustment.

2. **Conditions in the Notebook and Desktop Market (UBS):** The question focused on market conditions influencing MacBook launches and performance outlook.

**Response:** Tim Cook expressed optimism about the new M3 MacBook Pro and iMac, anticipating a significant acceleration in Mac sales, moving past the previous supply constraints and comparing issues.

3. **Engagement in China Market (Wells Fargo):** Analysts asked about Apple's strategy and performance in China, considering the competition and market growth potential.

**Response:** Tim Cook mentioned achieving a revenue record for iPhone in China, attributing it to Apple's broad appeal and competitive position, despite global supply chain challenges and the macroeconomic environment.

**Outlook or Guidance:**

Apple anticipates similar total company revenue for the December quarter as the previous year, despite having one less week. This projection includes growth in iPhone revenue on an absolute basis and a significant acceleration in Mac performance. However, it expects deceleration in both iPad and Wearables, Home and Accessories due to product launch timing. Gross margin is expected to be between 45% and 46%. This guidance, particularly the

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