Apple Inc. (NASDAQ:AAPL) Q1 2020 Earnings Conference Call - Final Transcript

Jan 28, 2020 • 05:00 pm ET


Apple Inc. (NASDAQ:AAPL) Q1 2020 Earnings Conference Call - Final Transcript


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Good day everyone. Welcome to the Apple Incorporated First Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions] At this time for opening remarks and introductions, I would like to turn the call over to Tejas Gala, Senior Analyst, Corporate Finance and Investor Relations. Please go ahead.

Tejas Gala

Thank you. Good afternoon and thank you for joining us. Speaking first today is Apple CEO, Tim Cook, and he will be followed by CFO, Luca Maestri. After that, we'll open the call to questions from analysts.

Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including without limitation those regarding revenue, gross margin, operating expenses, other income and expenses, taxes, capital allocation and future business outlook. Actual results or trends could differ materially from our forecast. For more information, please refer to the risk factors discussed in Apple's most recently filed periodic reports on Form 10-K and Form 10-Q and the Form 8-K filed with the SEC today, along with the associated press release. Apple assumes no obligation to update any forward-looking statements or information, which speaks as of their respective dates.

I'd now like to turn the call over to Tim for introductory remarks.

Tim Cook

Thanks, Tejas. Good afternoon, and thanks to all of you for joining us. We're thrilled to report Apple's biggest quarter ever, which set new all-time records in both revenue and earnings. We generated revenue of $91.8 billion, which is above the high end of our guidance range, with revenue growth accelerating for the third consecutive quarter. Geographically, we set all-time records in the Americas, Europe and Rest of Asia Pacific, and solid Greater China returned to growth. Our record performance was fueled by iPhone where December quarter revenue was up 8% year-over-year and by our fifth consecutive quarter of double-digit growth outside of iPhone, including a new all-time record for Services and another blowout quarter for Wearables.

Our active installed base of devices has now surpassed 1.5 billion, up over 100 million in the last 12 months alone reaching a new all-time high for each of our main product categories and geographic segments. Not only is our large and growing installed base of powerful testament to the satisfaction engagement and loyalty of our customers, but it's also fueling our growth across the board, particularly in Services.

Let's take each category one by one. On iPhone, revenue in the December quarter was $56 billion. Again, that's up 8% over year ago. Thanks to the exceptional demand for the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. In fact, iPhone 11 was our top selling model every week during the December quarter, and the three new models were our three most popular iPhones. We had double-digit growth in many developed markets, including the US, the UK, France and Singapore and also grew double-digits in emerging markets, led by strong performances in Brazil, Mainland China, India, Thailand and Turkey. These new models are by far the best iPhone's we've ever