Apple Inc. (NASDAQ:AAPL) Q4 2020 Earnings Conference Call - Final Transcript

Oct 29, 2020 • 05:00 pm ET


Apple Inc. (NASDAQ:AAPL) Q4 2020 Earnings Conference Call - Final Transcript


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Luca Maestri

we continue to deliver innovative products and services that our customers love. As we move ahead into the December quarter, I'd like to provide some color on what we are seeing, which includes the types of forward-looking information that Tejas referred to, at the beginning of the call.

Given the continued uncertainty around the world in the near term, we will not be issuing revenue guidance for the coming quarter. However, we are providing some insights on our expectations for the December quarter for our product categories. These directional comments, assume that COVID related impacts to our business in November and December are similar to what we're seeing in October.

We just started shipping iPhone 12 and 12 Pro, and we're off to a great start. We are also excited to start preorders on iPhone 12 Mini and 12 Pro Max next Friday. Given the tremendously positive response, we expect iPhone revenue to grow during the December quarter, despite shipping iPhone 12 and 12 Pro four weeks into the quarter, and iPhone 12 Mini and 12 Pro Max seven weeks into the quarter. We expect all other products in aggregate to grow double digits, and we also expect services to continue to grow double digits.

For gross margin, we expect it to be similar to our most recent quarters, despite the costs associated with the launch of several new products. For opex, we expect to be between $10.7 billion and $10.8 billion. We expect OI&E to be around $50 million, and the tax rate to be around 16%.

Finally today, our Board of Directors has declared a cash dividend of $0.205 per share of common stock, payable November 12, 2020 to shareholders of record as of November 9, 2020.

With that, let's open the call to questions.

Tejas Gala

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