Apple Inc. (NASDAQ:AAPL) Q4 2020 Earnings Conference Call - Final Transcript
Oct 29, 2020 • 05:00 pm ET
Certainly. We'll hear first today from Shannon Cross, Cross Research.
Thank you very much. Tim, can you talk a bit more about China? And, you know, in terms of linearity, I think, Luca, you'd mentioned that services in all regions were at an all-time high, I'm not sure exactly what your comment was. But, you know, maybe give us a little idea of, you know, whether you're seeing any blowback or benefit from the Huawei situation, and just dig a bit more into the trends we're seeing in China? And then I have a follow up. Thank you.
Okay. Thanks Shannon. If you look at China and look at last quarters, I'll talk about both last quarter and this quarter a bit. Last quarter, what we saw was our non-iPhone business was up strong, double digit for the full quarter, and then if you look at iPhone, and you look at it in two parts, one pre mid-September, which is pre the point at which the previous year we would have launched iPhones, that period of time, which was the bulk of the quarter, iPhone was growing from a customer demand point of view. And of course, the -- not shipping new iPhones for the last two week of September, makes that number in the aggregate a negative. But the net is the underlying business in China last quarter was very strong, and perhaps very different than you might think from just a quick look at the stated number.
In terms of this quarter, given the explanation for last quarter and the momentum that we've got, and as importantly, given the initial datapoints that we see on iPhone 12 and iPhone 12 Pro, although we don't guide to revenue, as Luca said, I would tell you that we are confident that we will grow this quarter in China. And so, we're very bullish on what's going on there. A little more color on last quarter, we had a much more significant inventory draw-down on the channel side than other regions, and so that is one reason why the numbers are different than other regions. And additionally, the new products in the year-ago quarter were a higher percentage of our iPhone sales than they were in other regions. But hopefully that explains what's going on in China.
In terms of the market there, 5G is fairly advanced there. They're forecasting 600,000 base stations by the end of the year, and so we're entering the market at a very good time, and with the reception that we've gotten so far, we're very confident there.
Okay, great. And then can you talk a bit about just overall in, you know, the world, the cadence that you see, sort of the 5G adoption launch, you know what you see will be sort of the key drivers. Obviously, there's a fair amount of subsidies going on in the U.S. at this point? Thank you.
Yeah. We are working hard to provide the best experience for iPhone