00:00WE ARE GETTING THESE NUMBERS CROSSING THE WIRE RIGHT NOW.
00:02START WITH THE BOTTOM LINE EPS FOR THE FISCAL THIRD QUARTER,
00:05$2.02 A SHARE, A BEAT. THE STREET WAS LOOKING FOR $1.89.
00:09REVENUE FOR THE QUARTER COMING IN AT $109.42 BILLION.
00:15THAT'S ALSO A BEAT OVER 108.85 FOR THE QUARTER.
00:20SERVICES REVENUE LOOKS LIKE A LITTLE LIGHT AT 30.7.
00:32THE STREET WAS LOOKING FOR.
00:34ONE NUMBER I'M INTERESTED IN HERE WAS THE GREATER CHINA REVENUE.
00:39THE STREET WAS LOOKING FOR $19.5 BILLION.
00:45THE BIG QUESTION GOING FORWARD ISN'T SO MUCH WHAT THESE NUMBERS
00:48LOOK LIKE IN THE THIRD QUARTER BUT HOW MUCH THEY CHANGE OVER THE
00:51NEXT COUPLE OF QUARTERS WITH THE INTRODUCTION OF THESE NEW
00:54PRODUCTS.
00:54IF THIS QUARTER AND THE QUARTERS GOING FORWARD IS A
00:58PRODUCTS STORY HERE THEN CHINA IS GOING TO BE IMPORTANT.
01:01THERE'S A LOT OF COMPETITION IN THAT MARKET THAT I THINK
01:03SOMETIMES AMERICAN CONSUMERS FORGET ABOUT.
01:06JUST GOING OVER SOME OF THOSE NUMBERS AGAIN.
01:08GREATER CHINA REVENUE STILL A SLIGHT MISS HERE.
01:11AMERICA'S REVENUE THOUGH BEATING ESTIMATES $45.78 BILLION.
01:16THAT'S UP 11% YEAR OVER YEAR AND ALSO BEATING ESTIMATES.
01:19THE SHARES THOUGH ROMAN DOWN 2%.
01:21GROSS MARGIN IN THE QUARTER UP ABOUT 25%.
01:25SLIGHTLY ABOVE WHAT THE STREET WAS LOOKING FOR BOTH IN TERMS OF
01:28THE GROWTH RATE AS WELL AS THE ACTUAL NUMBER.
01:31MARK GERMAN OF BLOOMBERG STILL WITH US HERE AS WE START TO PARSE
01:34THROUGH THESE EARNINGS.
01:36RELATIVELY HO-HUM REPORT WHEN YOU LOOK AT THESE NUMBERS.
01:39IT SEEMS A LOT OF PEOPLE ARE LOOKING FORWARD.
01:41IS THERE ANYTHING THAT JUMPED OUT?
01:42WHAT DO YOU THINK ABOUT THAT?
01:42MORE IMPORTANTLY, MARK, WHEN WE GET TO THAT CONFERENCE CALL AT
01:455 P.M. AND THEY ARE GOING TO HAVE TO
01:46REALLY START TO ARTICULATE A FORECAST OF SOME SORT, WHAT DO YOU
01:49EXPECT TO HEAR FROM THEM?
01:50WELL, THEY ESSENTIALLY MISSED ON EVERYTHING EXCEPT TWO
01:53SEGMENTS.
01:54THE GOOD NEWS IS THAT THEY BEAT ON IPHONE.
01:57THIS IS ABOUT A $11 BILLION YEAR OVER YEAR INCREASE.
02:01THEY MISSED ON SERVICES.
02:04BUT THE IPHONE, EVERYTHING IS BUILT AROUND THE IPHONE, SO
02:06IT'S PRETTY SUCCESSFUL.
02:07BUT WHY SERVICES?
02:08I MEAN, THAT KIND OF JUMPED OUT AT ME BECAUSE I THOUGHT THAT
02:10WAS SORT OF THE BALLAST FOR THIS COMPANY.
02:12NO MATTER WHAT WAS GOING ON WITH HARDWARE SALES, THE SERVICES
02:15WAS GOING TO HOLD UP.
02:16WELL, I MEAN, THE GOOD NEWS IS THAT THIS APPLE UPGRADE SERVICE,
02:18I MEAN, THAT'S GOING TO CONTINUE TO MAKE THINGS A
02:20SUBSCRIPTION.
02:20BUT I DO NEED TO POINT OUT THE MAC ABSOLUTELY DESTROYED
02:25ESTIMATES COMING IN, WHAT IS IT, NORTH OF $10 BILLION?
02:28$10 BILLION.
02:29IS THAT SURPRISING?
02:30BECAUSE I FELT LIKE, I DON'T KNOW, I FELT LIKE A COUPLE
02:32YEARS AGO, WE WERE ALL SAYING THE MAC WAS BEING WRITTEN OFF OR
02:36WAS IT JUST A REFRESH OF THESE PRODUCTS?
02:38TO BE HONEST WITH YOU, ROMANE, WHEN I SAW THESE
02:39ESTIMATES THE OTHER DAY, I THOUGHT THE 8.6 BILLION WAS A
02:42LITTLE LIGHT.
02:43THE MAC HAS BEEN HAVING TREMENDOUS MOMENTUM BECAUSE
02:45OF THEIR IN-HOUSE SILICON.
02:46THE GOOD NEWS IS, THE PERSON DRIVING THIS MAC RENAISSANCE,
02:49THAT IS JOHN TURNESS.
02:51HE MADE HIS NAME AT APPLE FOR REINVENTING THE MAC AROUND
02:54THESE CHIPS.
02:54THE MAC BOOK NEO IS CLEARLY A HOT SELLER.
02:59I THINK THIS IS A GOOD OMEN FOR APPLE AND HIS TENURE, TO BE
03:02HONEST WITH YOU, PLUS THE IPHONE BEING STRONG.
03:04THE IPAD, IT HAS BEEN WEAK FOR YEARS NOW BECAUSE THEY HAVEN'T
03:07REALLY DONE MUCH WITH IT.
03:08THERE WILL BE A NEW IPAD MINI IN SEVERAL WEEKS FROM NOW WITH A
03:12NEW DISPLAY WITH THE OLED.
03:15WEARABLES IS LIGHT, LIKE WE TALKED ABOUT SERVICES LIGHT.
03:19IF I AM AN APPLE INVESTOR, I AM LIKING THE MAC NUMBER,
03:21ESPECIALLY BECAUSE THAT IS NOW THE AI MACHINE OF CHOICE.
03:23WHAT DO THE INVESTORS WANT TO HEAR ON THIS EARNINGS CALL?
03:25THEY WANT TO HEAR STRONG GUIDANCE, PARTICULARLY AROUND GROSS
03:31MARGIN.
03:32THEY WANT TO KNOW THAT THESE PRICE INCREASES ARE GOING TO DO
03:35THE TRICK.
03:36I THINK THE INVESTMENT COMMUNITY IS NO LONGER OF THE OPINION
03:39THAT THESE PRICE INCREASES ARE GOING TO HOLD BACK SALES.
03:41I THINK THEY ARE OF THE OPINION NOW THAT IT IS GOING TO HOLD
03:43MARGIN STEADY OR BACK AT THE CORPORATE AVERAGE, SOMETHING
03:46AROUND THERE.
03:47ALSO INCREASED SALES BECAUSE THE NEW IPHONE 18 PRO AND PRO
03:50MAX, THE NEW FOLDABLE IPHONE, NEW APPLE WATCHES LAUNCHING THIS
03:53QUARTER ARE GOING TO DRIVE A LOT OF DEMAND.
03:54WE ARE GOING TO GET OUR FIRST SNEAK PEAK OF HOW MEANINGFUL APPLE
03:58BELIEVES THESE NEW PRODUCTS LAUNCHING IN JUST PROBABLY FIVE TO
04:02SEVEN WEEKS FROM NOW ARE GOING TO DO BECAUSE THIS QUARTER IS GOING
04:05TO INCLUDE A COUPLE WEEKS OF SALES OF THOSE PRODUCTS.
04:07SO, DEFINITELY LOOKING FORWARD TO ANY COLOR THERE.
04:09AFFORD TO HAVE GONE ON THE JONES.
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