Apple (AAPL) 28 Jan 212021 Q1 Earnings call transcript

Good day, and welcome to the Apple Q1 Fiscal Year 2021 Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Tejas Gala, Director of Investor Relations and Corporate Finance. Please go ahead.

Thank you. you us. thank and afternoon for joining Good

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net per Tim. the records you, afternoon, flow. our XXXX operating with performance share operating income, business revenue, December Good exceptional quarter, earnings we financial set for cash and We Thank during everyone. as fiscal started and all-time income,

of We our teams with way throughout are uncertainty. execute this thrilled to the and innovate elevated continued period

categories, with and as Our revenue ago. digits billion strong Accessories of reached services We an iPhone, each year increase XX% for double well all-time quarter record or record as all-time $XX grew and Home Mac. our records from December an Wearables, for a of in nearly of $XXX.X a product billion,

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customers, our major consequence of this performance record an of of a level our of during the X.XX sales our passed of categories. the quarter and As December billion loyalty and active base installed reached product in unmatched devices each all-time

leverage $X.X share XXX mainly up were records. business and Net new and margin established basis mix. record flow detail to quarter per Services points Services was cover segment. records XX.X%, Net I'll categories gross leverage by all-time up $XX.X XX.X%, all-time all-time a year-over-year. income gross and different due was to sequentially, and earnings income, margin cash was diluted XX% mix. records operating an sequentially, billion XXX was up growing each set last Services earnings our Our basis were billion, year of basis in sales from We XX.X%, $XX.X improvement billion. in points billion, of in $X.XX, share later. flow $XX.X XX% XX% and was Company sequentially, an over year. billion, per most Products higher driven December or strong up $X.X geographic margin over XXX more points gross Diluted mix. a operating last thanks service growing cash

detail was the more which our billion, as demand in XX% was family XX store have $XX.X iPhone for of COVID-XX impacted growing measures, record despite and social significant into get iPhone me manner. a each revenue for operations strong very revenue distancing categories. year-over-year Let a

Our active ecosystem. high devices, X all-time base loyalty the customer of has reached of and billion to of exceptional installed base now strength and thanks a our new iPhones our surpassed

in iPhone family. the the from for latest the XX consumers U.S., satisfaction XX% indicates fact, of Research survey of In XXX iPhone customer

Services. to Turning

$XX.X I Music, records said, advertising, in set an record cloud reached services. and all-time payment revenue App billion all-time As AppleCare of we Store, services, and

transacting to key accounts growth before segments; all third, content a as overall Fitness+ Arcade, Apple accelerated million move paid our the product stores paid of and accounts growth nicely, paid subscriptions increasing are service the has our Apple content continue category; The bundle the on subscriptions double features. each installed December contributing to geographic Apple users, of for and continue digits base reached new with and our and number Services News+, as to exceeded XXX all-time our growth offerings, we XXXX. Our and also drivers well each second, add high during direction: Card, TV+, end the Services Apple first, both One major of Apple of quarter, calendar new Apple grow to in in the digital continue target paid our right

December across have a year platform, added the paid from During the services quarter, now XX on our than than million sequentially, XXX and million up we subscriptions more more just million we XXX ago.

and improve and to that of Finally, current adding we we quality love. are customers continue offerings new think services our the Services will breadth our

billion, have Accessories with that of expand For the Apple in experience. geographic in our coverage, easily example, Apple segment. $XX now play. stores to already Apple personal like In Search, with United so payments we Pay XX% States all new Home every have to accepting payment customers services, can XX records Music XX% and continue and year-over-year Wearables, recently auto all-time of a these stations revenue setting nearly touchless released users new grew its iOS biggest product Listen features. XX% radio update used on features ever new Now, Music

now this result our Wearables Fortune XXX a business performance, strong size is the of a of company. As

customer continues experience purchasing us Importantly, product. hardware, the extend our and Watch with and nearly We're positions Apple to new to great very XX% services in of Apple to excited customers about future its provide the during of category. that reach, uniquely integration the quarter software of being this this believe category Watch the

in revenue a all-time the set strong Pro Japan. by quarter Air, billion We Japan. Greater by an double I'd to December driven over every Mac. new MacBook up Europe was billion, record Asia-Pacific and about grew records mini, for iPad well rest performance brand-new in strong-double-digits our geographic segment, of Mac Next, as records geographic in demand with MX quarter chip. the each XX%. set all-time revenue China revenue very in year. at -- including strong impressive like strong December and and and talk in powered XX% very MacBook We segment digits performance We as all last Americas, also up $X.X $X.X This grew for of record was in

the seeing fixed phones Mitsubishi businesses the hundreds is our many will in phones of are their providing talent businesses Air the the current market, measured of the XXX employee Employee shifting iPad customer for enterprise to banks one that all-time new while the of be realize satisfaction to XX% iPad. the customers savings installed retention. and in delighted available Program satisfaction satisfaction largest recent with learning Bank, for quarter, to announced customers product, and mobile response relevant are working and One iPad employees to grow Mac platform the it Research quarter to -- nicely leading and the terrific. that it half are UFJ for working seeing reached Mac environments. XX% are also And we of incredibly its iPhones. world's level customer quarter, With replacing response By customer example secure are increased while significant productivity, with world, iPad and has for our COVID. Choice of expects became and handling new businesses, products all-new been investment the doing surveys and consumers around highs. during millions that products the their both Last remotely. of of most adoption In this the cost improved are pleased Both the Mac and the During at we Mac technology employees. base new who with a rapid desk among purchasing in We're active XX% of so, office being more continues from

excited we're times in of range Macs, even customers increased and extend broader to remote to MX-powered of an especially working. of introduction the experiences employees, With these

billion position. to with plus $XXX maturing of billion total marketable cash quarter $XXX leaving of We debt, the $X me in our Let with securities cash debt and ended almost now retired billion. turn us

the cash We market we on As over path over of time. $X.X was a repurchases the a at billion shareholders cash million in to the billion through during shares neutral billion quarter. returned dividends net to and our continue net of billion open result, equivalents $XX and December Apple quarter, as end reaching $XX $XX including XXX position

referred beginning to that move what we seeing, March are I'd the forward-looking into at some to the the As we on of Tejas like color call. quarter, which includes ahead types provide of the information

continued guiding we to near world revenue the specific be a the term, will uncertainty in Given not the around range.

are However, insights, impacts assuming COVID-related of our from current do the we providing directional assumptions for worsen that some not our quarter. business

For tougher activity the year-over-year our elevated occurred total faces follow aggregate, two business company basis. the product last our year, saw second, on digital growth world, quarter services we level, accelerate Home and Wearables, revenue, sequential mind decelerate basis, a we comparison; in so believe the we compared in keep typical first, a year-over-year in the QX. a lockdowns in category during Accessories seasonality will to and as the around At March on growth Services category believe year-over-year items: will

on know, decrease QX. last typical inventory we as year QX as chasing were AirPods AirPods you we quarter. inventory As to plan holiday demand to we after channel the from expanded year, is This channel

the be We to December expect gross margin quarter. to similar

between and $XX.X We $XX.X to expect OpEx billion. billion be

We to XX%. around expect be be $XX our to OI&E and around tax million up rate

of has stock per to of let's on common of share of XXXX. February call to XXXX, a $X.XXX that, cash record Board the Directors XX, of dividend questions. payable open as shareholders X, Finally, With our today, declared February

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

Please Morgan from ahead. go with Huberty Katy We'll question Stanley. go

on Congratulations strong a quarter. really

full Can you The currency you gross for as have typical are you then on And go gross headwinds hedges? March your dollar the follow-up Luca. versus the Tim. weaker for thinking about And given in of quarter, margin how quarter? particularly the question a was about impact outlook. recognize into strong you December talk the whether First your tailwinds then and margins the I

Yes, Katy.

obviously, better So was sales. and for strong, was The gross of offset that by beginning strong, strong that very we And the mix was leverage products had higher both within yes, the of mix we anticipated only than the mix was partially from had was the the cost. reason at services, margin the quarter. and

we've and cost know, many launched comes during you As new the structures. that always products with fall, new

a talked So sequentially they're it FX margin the level, at weaker still year December for because March on in level the also the we role to hedges still didn't Russia, XX remains in dollar, dollar because specifically from quarter, March Look standpoint, total, get quarter. in emerging a the quarter. can to around weak currencies Latin us the neither some against gross basis benefit play weaker current than as And continues partially of in year-over-year Turkey but you very Clearly, about we markets so good. that FX a become XX expect was weaken, on. ago. a are points into nor the America, really, basis and for of the some or At if for to the tailwind rates, that

one Tim, evaluate determine attractive over limited visibility of markets? and use look course, on markets Apple the framework believe And great. will a and you might that have be valuing you That's is enter into map about investors you that any road that new any to you given might your commenting enter can categories what new challenges the talk just as Without, time. the with you internally opportunity, that to new success of

enough to from which The we framework a in a of that big this that we we ourselves or ourselves use point for it's bar. service Thanks, would ask it asking want Katy, experience product, if unless an it's pretty want market customer view. much be to much adjacency if use very is me that looking product we're for not use would we And question, we that's specifics. any at ourselves. of a is the to around high thanks and ourselves ask And a a very

we're on it, those no of all services to and love thing. of kind And that so things, into where together But that and there's at we work looking software of taking way the we formula are because believe occurs at kind a that that for things come intersection. no really requirement magic there's those the account hardware, we're set to

at good opportunities And of we markets. of -- I how good bit little number there. that you portfolio we in have hopefully, insight cases we our it. gives share I so of out really And you relatively into low think very still big think in And some a look have at current products, look a a if

so we coming And working year-plus, feel the Services services good in just last for like time so we upside five feel Thank -- online too, there, year, four we've quite like have in and really yes. you. area, upside and the or we that good on new have really we been with some

with of Please go We'll America. Mohan from hear Wamsi Bank next ahead.

late times could iPhone couple Tim. any despite your how mix the on to And the constrained, change view I of the referred a on the strong exceeded growth does still a and you You ASP if Luca, share maybe March this launch. on Can for unit supply you a your follow-up share And on expectations very call. or color side? the quarter? if have you're side

why beginning quarter. Yes. the of of the one major our we was internal expectations exceeded own Yes, iPhone factors at certainly, the

Max. fantastic that, response the it's particularly the to and have we We and been see models, for the Pro lineup product new customer a Pro Pro and the know fantastic models,

quarter, very level as the we've pricing mix. constraints some very, the on particularly and the both Max. because supply of well had on units And we of went Pro on and Pro strong done through we've So, the

models after the weeks. models we launched in two As middle weeks, products four these you of said quarter, correctly, seven after the other two the

ramp, obviously, The world. around well. we steep products which all so a very, And are had doing well went the very very fortunately very

for I that think the demand has also you've performance phenomenal seen strong is level China, been in There we've probably. response iPhones, XG. XG seen some quickly market customer that that of to very was given moving where our particularly pent-up

models we're world. product point We -- to to the the around it's very very all into optimistic. is the doing able as all ahead quarter. balance in during quarter, believe supply-demand And we some going And the the look we're so March be for well be at

mentioned I And has this grow the maybe thoughts would your to which quarters? you Great. the how love at scale. that. to Tim, been versus upgrade us impressively Can on strength you base switcher get tracking very installed about continues in activity help think the through performance, recent of

the Yes. Thanks for question.

quarter, If has at the into other X iPhones we quarter seven the started and into two past this which you look quarter. selling the weeks weeks -- of the two,

And that saw family, at And the a early largest ever seen this we've in looking of in in we But the going. upgraders the in so switchers caution fact, I XX year-over-year would is basis. we number that iPhone upgraders both a and increase on saw quarter.

And about so, we were very thrilled that.

Cross We'll go ahead with Research. and Cross take our next Shannon question from

And Clearly, China? you're to iPhone growth, But product is? much a think what I the Tim, a then a with have I what follow-up. other I'm both Chinese curious, market significant sequential seeing you're how your think about well which categories, you in normal has as can as do bit lot you an seeing to iPhone. and back talk from

Yes. iPhone iPhone was there. than story. do did more China an very well

in were you world, And during if switchers upgraders like upgraders, look record and seen number sort of at a the we've ever the up also had the both quarter, and of quarter. most we China a year-over-year,

China I -- that about that portion XG in the of as network purchasing probably rumors the Keep sold in people overwhelming in mind XG is delayed is started majority appearing an think well are the iPhone. phones. some probably And of this previous established. quarter was phones being

level some XG. there think I anticipation of so us And delivering for iPhone was with an

extremely well. did iPhone so, And

as did Accessories and the performance about like iPhone. was not Home products Mac the we Company other average. did with above well, iPad the average. average. However, Company could Company Wearables, have beyond mean, a turned well. was extremely I the did in far only we

And it, at so the there. if you really look really across well we did Board

recovery stage. they're were -- they of of COVID, last beyond very the I sort -- at terms least quarter, COVID, beat in In for think much

occurring there quarter, some cases yet. business that are places lockdowns our in not about This seen as some we and in different have but reports

course, Of the countries. smaller are other than cases those much ones in

smaller business, thing Apple guess could is other some the I Services think was and then impacted TV+, actually at to talked moving little about kind number of Right. first also with has Luca, we the later times bit And was regard yet one in you revenue some if the and the you outperformed. curious quarter, had of services this needle. of of I that Arcade, Apple when of least you curious, Pay, the more, about, dig stores typically a the AppleCare I closed your a I

you could Services of talk drivers bit a the if maybe more revenue? about about So, the

-- mean, during course, is I customers really, when businesses AppleCare. that during talked in-store have Obviously, been closed, of in it's we about Board. overall December tougher, that advertising, line improved. in the for two is the strong the There with have happened are interaction and to One then past. been the What quarter it of is activity. us. traffic COVID it's impacted it's the Yes. negatively, which economic the are across stores And with level

record Europe. total, in started services are in in really United grow all-time environment. helped we didn't stores, the past acceleration support particularly customers saw during spite And States we we but we delivered also to few yes, in in but It's -- in AppleCare, and cloud Western so fact AppleCare, But as the of much than grew there an the we particularly also were was the here quarters. services, grew strong in in in seen a company so average advertising that, as a overall we in Store, the in the December, running, able closing Those were And we sequential we've performance. Clearly, in that the strength rate. very, growth that very App services, something happen Music. digital that also more set COVID

with from Toni We'll hear Sacconaghi Bernstein.

for could bit wondering about talked we you drawdown also Luca, Luca just I probe Maybe and for one can a channel I in you one have -- little just into more inventory last if was a Tim. quarter. iPhone.

we in should now in be growth about at levels be fewer above-seasonal supply-demand thinking of iPhone balance we QX? of still about QX? sort above-seasonal exiting days is had And given inventory into sort looking channel and Should iPhone iPhone normal growth, you selling not fiscal QX. thinking you're that Our

very So on a cycle different because than know, at time we as launched this the usual. was Toni, performance, you a December different

quarter fill had demand At so, of And new of the launched a certain the an happens, very then the quarter. has initial channel quarter, extent, end we the phones. new been part the to have that also did typically strong. in didn't we September the phones, And we where, we as obviously, the the

was the a we've so which At I ago. a -- Pro inventory, December, below as of iPhone exited constrained, level of said, on in slightly models. with And channel end been especially the we year

constraints, So level going we some able during still had which of March we we believe we're to solve -- supply and to be quarter. the

But that's we're Wearables, 'XX, back, sequential product you not said we the going progression we that fiscal seen of prepared 'XX, you've typical the average, talked slightly go expect the be 'XX, Services that to years. be last past typical total to compare. and of change, that our we talked to about of difficult year a typical we sequential And -- during is terms categories, because if in In Certainly, seasonality and where having a company similar about more seasonal mentioned COVID. we progression. couple remarks,

you I can draw so your conclusions And around the think iPhone.

growth. Historically, feel is Tim, confident in an a then, and The has the of rate you don't still Company for I opportunities you just I if then going Apple forward? wondering over next comment believe you growth think And that say, source revenue growth do And of whether comment growth? think important acquisitions broadly you could are Apple sources importantly, this realistic And let's what around Apple look Apple $XXX I'm acquisitions. be organic could more you've years, if most over out, wondering Okay. year five that growth for revenue. you going perhaps issued well billion was you to and as is

And current at Yes. have in punt if look growth we quarter in your question. of we you Services. have at have product had. some rates, beyond up the terms on hardware we and point, in and color Toni, the we pipeline this a back as sort ingredients we've you but know, But the portfolio part that ever that future, that not so products strongest the both the that great for give of of I'll

Services course, has particularly an compound an fair year more still revenue Fortune a have we're side, of last a was added I switchers that, that installed We But hit the And we've those that the they the about we've record, as talked earlier with base just and number products. early thing which even services the that and set contribute just so, think feat. small company, have that We of will and, new we all-time that that highs upgraders. zero base to this grow in installed we no our brought stream. of comments. the in mature, stages And attracting and over Wearables from XXX on to had or still to Services we're opening

a how we've our you that If we in last but India in compared particularly leave expansion. we're fair markets. And market this example, of other proud of headroom in done where or more our business case a Like take that kind other are is quite have we're a and of and our But find the in relative from and well. to traction low the thing you size world the quarter. is -- And like year been view business of point still to multiyear take as we've absolute of numbers emerging share some the lot the as markets of if share that at market you those go the of markets, you a there's bit products, you or around the enterprise an amount Mac in the find quarter level is of And ago the share on doubled for can some look iPad, of effort that the there headroom iPhone whether opportunity. course, a of other look quite there. gained

then, You've it And quarter. things very we've in comment heard what today optimistic space. comments the and nicely past. things we're new the to contribute will like to not that Company in think we of can about we contributed the some other we on We're each going new course, just that to of talk about as that in the got Company do things well, Luca's some have

Thank the we lots for see So, opportunity. question. you of

We'll Please hear Daryanani Amit Evercore go from ahead. ISI. with

just haven't gross this? to I What think, big we margin the to higher? and I And gross some has get at of high drivers of maybe discussion, back margins you, go step here? commodity is levels. And are to the I have Luca, questions enabled level, at or shift I a Could with really XXXX. are two the as of guess, margin this just seen durability the components understand and since the back to well. love us what there? what starting big wanted XX%, you got key part in-sourcing tailwind these really you the that So talk, drivers gross

of strong were product obviously, the level case honest. and and right? products, quarter, of I right? grown the product a the expansion been biggest Board, talking the high Well, the we've helps margin And -- Max, Services, fixed iPhone, category, probably in XX%, that's sales I had, when category. we've product much way a mean, grow to we a so every in factor, this earlier, in be pretty the we've has certain that had of without And so and about Pro our across in structures, it's level every doubt, then was saying been you We mix of course, as cost Pro the a very have

was not time us has negative. Katy, years, same is the over mix a FX last And or the has that a commodity this almost been one it's the very yet benign. a but has also been the is reasons the quarter. to FX it explaining that time, around that has is reality The for for at the been not So every fairly five been it the true, has negative not good. tailwind environment I six affected And us thing that

has that And so a obviously changed. makes And difference. that

see, Mac on growth been at And suspect range they've last that is quarters, replacement go here? you the predictable we the at more And you then understand, for of into you just you folks is the Tim the I customers home do growth look look coming this versus I I think rates iPads, sort do to is Apple pandemic. folks when what with think folks cycle-driven over with the of three contending these love and new But how or and of new guess, are this XX% when upgrading in some to durable and much as XX% at rates growth and do forward ecosystem? rates,

new are from purchases switchers, that If new. you level, new are iPad, at people about, look the are worldwide of the coming still look if numbers switcher at the that and the these to you or Mac to about half a at

And is base it. so still with installed new in the customers expanding

Mac. both that's so on and true iPad And

at haven't about of the if Mac, we good Macs. past. a proxy, that growth is us there's look had excitement you QX If new MX, in MX-based the I think, lots Certainly, trajectory gives a

have are laptop these has of and now clear Air, people more do We've iPad As to as using we transition. more we're best complementary But transition, we've lineup it's early had, there with desktop. you know, there. growth see but We're iPad that some the Others two-year as a iPad, -- using of partly far. the the a through out them phenomenal. excited got and ever so what we level to are The about replacements. been we're their the we days lot as went

and it share I the I quite iPad in just in learning. is is at yes, wouldn't of both and total In it for part of home it how product of Mac is the low. computer it of at market. Mac. part XX%. personal And on is the case of itself our work look But underestimate the You think -- the much from course, And --

there's so headroom And lots of there.

We'll our go take JP from Chatterjee ahead Morgan. question with Samik next and

guess on off as Congrats the well. I wanted with iPhone quarter sales. side I record to from start my

out of North and infrastructure. see sales is engagement wanted customer just have -- more XG Is you And in of Europe, that's we in have latest China robust region? impacting to in seeing robust in that is think impression of that interest services. the in providers lineup have impression rolled America what for think haven't I the are iPhone general I where velocity XG general or follow-up. I I a something terms service customer the kind

Europe that is there look not the certainly regions an example. are nowhere XG coverage, the at is where of nowhere that like Korea is close U.S. XG and China in you to -- good other very If in is has the close place Europe, it's But that true rollout -- either. to

of last Latin not lots places ahead of there America more a one. there. would XG describe to so from more And that the a a that patchwork I implementations is view. to gotten then there we places in nationwide but are really where are -- is coverage. places point think of there's haven't of more it And country the excellent where within world, the Europe very that yet. good There now, right There that is And us haven't started really I are opportunity do had There's quilt. is are closer there.

I of probably is that growth front there think us of well. in as most

it. Got

for couple of conversion As in terms think which it. Any the bundle? ask anchor are turning a you that the services has be launched that what since adoption into for metrics insights rate bundle, out follow-up, in Services even you're I if been One of you're of seeing a are bundle, of momentum seeing share I think turning months now to to can just customers you, driving that's or which I you Apple the mentioned

some too to questions. those really of early It's answer

less now. What easy the making to a is our you just Services very clearly quarter we into QX accomplishing, on wanted got with which it, we than started we have this to. right quarter accomplish know, to in so subscribe As we're

several clearly told in wanted Our or, cases, to customers subscribe to our that us all of they services services. some

that simple, we've working so, on it's it. the started just clear but very early and gotten from we've that going it's And made

Sankar We'll with hear Krish Cowen. from

think growth in And the your are at Tim, quick the How technology, any adapted search two parts for growth it the little bit is Congrats there times on first AI a be Services then Store after And your also, where grow fundamental a My business. results. think advertising? for the question very Tim. long you other can how How it and advertising to do that. first talk you the three I long-term of -- strong have do question. about applications rate? opportunities want I App for of times search that's could business, follow-up Luca to

there's It's kind going And do advertising search very well. is private great lots been manner, of see of I business we so privacy Luca forth. policies advertising try a the forth. it out. a that search. in And a intent nicely of -- of I to The from area And that area. we that think spoke it and part It's so willing see in observing people growing are And earlier. have and people think

it, a got you segment follow-up Chinese then in at downloads Services look And quarter, during see gaming When typically Got for in Year. China, you to a Luca. the it. New bump your due March

time you for gaming might do in at think of for a with this similar China around? a trend and people kind think see happen pandemic, bump not seasonal should downloads? So But me that home,

Year, because in country quarter Chinese typically Store for clearly, China, New business for into you Yes. think I the our New Year, whole last remarks. weeks. Chinese mentioned. level activity App mean, as lockdown -- strongest the went is Services of it after during the of an the I several I prepared year, for increased we March what quarter And and was mentioning saw because was We the

playing typical cycle. so that propensity more for continued And for several weeks, than games a

of you at what the So, a need that but ago. we quarter expect year in a going time, China, happened have in to great is the compare to same mind keep to

and We'll go our James. take Caso question Chris ahead. go Please from next Raymond with ahead

you disclose on numbers speak but qualitatively. could it is I I question you about don't wonder and the know ASPs there, first if The iPhone

And the to higher established You compared you can iPhone price saw speak forward, differences confident a as you how year some spoke the level to ago. in new about point. you came point. price XX the going there? you richer forward? of mix, Pro that but Can continue are going a price to that there The iPhone that were also benefit improve next

So, as because revenue iPhone That mentioned we and that before. strong from I growth said came I earlier, of XX%. sales grew unit ASPs the both mix

weeks seen the to question What new few early for interest level we've Pro for the so very Pro ago. is So, answers models, only the we products the far What it's your of quarter. far, seen a supply. the Max. quarter. because a Pro quarter. we've launched I that think ramp high so very December very going We very We've supply March December on been our the during to mix able constraints them strong so some the the had we're solve think to during and worked far, be iPhone. But hard up We has

Okay.

follow-up you that potentially the both? question, removed, a during And of permanence be quarter. perhaps very Did have that if bit level to or your those that mix the As may benefit in seen We've seen trade-ins a of some or from that see actions if you actions? carrier could provide in of talk those could view, headwind units a the some a would aggressive you were be that going such the benefit, what subsidies forward? on would

Tim. it's Chris, think, I

good to that's us price as customer for obviously anything customer the I the well. think it doing for is the the and subsidies always good reduces help, good that for that carrier and

it's that the geographies, is to bit so, have the get the least based Outside varies so to greatly if board. I are market it country. what and work right customers used competition subsidies continuing I to on of in win carriers not move quite all probably customers there talking a now And market, that, would across in really U.S., as U.S. to XG. about the for believe by see the you're a the at be of more

are handset areas, we the separate Some completely, those And of have and in them subsidies. the don't service.

We'll Citigroup. with Jim go Suva ahead from and hear

countries know of the our on around has an the in pushback society. market and time and is view progressed is share. uncertain like Apple at amazing iPhone It's you or kind pivoted countries other this that But Apple get on product that them when India, I below in saturated materially market look or statistically, they lot your I that how we everyone A believe being of some. company are developed through has

So some world. think Store. seems been supply It should there's there. there? Apple news of are moving an up share efforts really recently doing How Or reports you seems around it chain full we not Because the like active you equally about like market opened you're that? just

are several markets, alluded quarter. There one from is the low. year-ago to Yes. is those, share where quite India did I our of It before. improve as

business of period Our doubled over roughly time. that

so feel trajectory. we very And good about the

achieve that helped in And a with has number future. the for got great also area. a put to to doing store the reaction We're of of and quarter example, there, full us last results stores are the things first online in it and has the We retail quarter We the we was online last there the gotten going that store. in quarter.

And so continue another be to we as look channel the to for well. develop that and initiative we great

the share other even but where would that I everybody would of markets of when even things, developed not not our doesn't -- I lots in so And several close. there's definitely, might in than like. you India And look markets, an in share, lower again, only you at say, the also iPhone, our have name we is

we significant market. And so, have a in don't share any really

developed where headroom might hear So, those markets there's left you even in that.

Congratulations to your team and employees.

Appreciate Thank you, that. Jim.

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