Apple earnings call: New records in several countries, but Mac, iPad struggle
On Apple's (NASDAQ:AAPL) earnings call, CEO Tim Cook said the tech giant generated new quarterly records in a number of new countries, and new March quarter records in others, including India.
Cook noted how important India is to the company's future, noting the number of people expected to move into the middle class in the comping years. "India is at a tipping point," Cook said.
The 61-year-old Cook added that the $51.3B in iPhone related revenue was a testament to the strong demand for the iPhone 14 and iPhone Plus models, as well as its Pro and Pro Max models. However, the Mac and iPad - both of which performed inline with company estimates - suffered due to strong demand for M1 Macs, as well as foreign exchange and macro related issues.
However, Cook noted that customers have responded to its M2 Macs, specifically calling out the M2 Mac mini.
Services strength was led by Apple care and video, though gaming was called out for some weakness, according to CFO Luca Maestri. The company now has more than 975M paid subscriptions across its Services, up 150M year-over-year and nearly double three years ago.
Seeking Alpha contributor Bill Maurer called the results a "solid beat."
Looking to the June quarter, Maestri said Apple's (AAPL) results should be similar to the March quarter, with foreign exchange a headwind of roughly 4 percentage points.
Services revenue is expected to be similar to the March quarter, with mobile gaming and advertising seeing some weakness. Gross margins are expected to be between 44% and 45%, while operating expenses are forecast to be between $13.6B and $13.8B.
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Shahid Jamil/iStock Editorial via Getty Images
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Comments (41)
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In India if you have an apple phone it is as if you bought yourself white skin (literally) in the mind of the poors,
as if you're elite - super wealthy - as if money is no object to you.No google phone will ever have that impact unless trademarks fall apart and they slap a apple logo on the back of their phone.I say this as someone who's lived in Nepal/india/etc region for over 1 year in total. Apple is indisputably the most desirable, everything else is a cheap copy in peoples minds (excluding some rich techie guys).
If my memeory serves me right, This is the first time I see such a dichotomy and trying to find out how they pulled that rabbit.
I have no plans to sell a single share but one should always try to learn a little.
If anyone can provide an objective reasoning, I'd be grateful.
Good luck to all the longs
