Chapter 1: What were Apple's record quarterly sales figures?
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Just want to get to Apple. Let's get to it. First quarter revenue, $143.76 billion. Yes, a big beat. $138.4 billion was what the street was expecting.
Chapter 2: How did Apple's revenue in Greater China perform?
First quarter EPS, also a big beat. $2.84 a share. The street estimate was for $2.68 a share. Greater China, they've been struggling there. Revenue in Greater China, $25.53 billion. Folks, that is a beat. $21.82 billion was what the street was expecting.
Chapter 3: What factors contributed to Apple's strong earnings report?
That's a new all-time EPS record, though, overall, and the install base now has more than 2.5 billion active devices. Well, got to say, investors liken this report in the aftermarket. Stock's still up about 2% here in the post-market trade. Hey, let's see what Bloomberg News Managing Editor for Global Tech, Consumer Tech, thinks about this.
He is Mark Gurman, knows everything about this company, lots of exclusives. This feels pretty good.
cook gets to keep his job right at least for now um this is a massive massive massive quarter uh this is a home run their greatest quarter ever by orders of magnitude it's a gigantic beat on overall revenue uh china is back uh you have a big beat on um
Chapter 4: What challenges does Apple face regarding component costs?
The iPhone, in particular, $85 billion quarter is just insane. The installed base, $2.5 billion. The numbers are just beyond excellent. We can ignore the fact they missed on wearables, home and accessories. We can ignore the fact they missed on Macs. We can ignore the fact that they barely crossed expectations on services. I guess none of that matters when the iPhone is selling so well.
Chapter 5: How is Apple leveraging its supply chain advantage?
But still, there's the big existential question of what's next. It's an important question because of AI, and Apple absolutely needs to figure out its AI strategy. There needs to be an AI reckoning of some sort there. But they just bought themselves a very long time with this just insanely great quarter.
So let's talk about a couple of the areas that you highlighted there. One is China, and another one is the sort of the concerns that people had about memory chips in this quarter and the rising prices of memory chips. How was Apple able to navigate this so it didn't hit its margins like people thought it would?
Chapter 6: What is Apple's current AI strategy and its importance?
They buy components and memory components quarters and months in advance. Sometimes years in advance, they have these deals struck. So they're working off of numbers and pricing and materials here that really give them extensive pricing power over competitors. So we'll hear more about that on the call today, but it seems like they're fine.
Mark, I love this. I mean, I'm looking at our live blog. So you must have like kicked this out before you jumped on air with us.
Chapter 7: How did the iPhone impact Apple's sales this quarter?
But you did mention that the significant things on the call. You've already talked about the AI strategy succession. You've kind of said maybe that's off the table for now because this was such a blowout quarter. You talk about the long term viability of the business if it doesn't get its AI act together.
It's hard to even think about that when you see the numbers here and just what a big company this is and how significant it is, I feel like, in so many different people's lives. Like, I have an Apple household. I think Tim has an Apple household.
Chapter 8: What future steps must Apple take to maintain its momentum?
Is that really the long-term viability if they don't get AI together?
They call me Tim Apple, in fact.
They do. Yes.
Yes. I said long term. Right. And I'm talking really long. OK. The little the little the really long term here. Right. Like at some point there is going to be a need to fulfill these AI desires. And, you know, they're going to have to figure that out.
Well, Anurag Rana of our BI team, he talked with Tim and I just moments ago, and he talked about, you know, how they're working with Google when it comes to AI, relying on them right now for their models. And so they're not doing the big AI spend. That makes sense for now, too.
So do you agree that that's kind of a smart strategy now and kind of waiting it out a little bit, but at some point they've got to kind of do their own thing? Yeah.
It's not that they're waiting it out. It's that they have no choice. They have nothing internal. It's not that they're waiting it out. It's that they need to do it. And so they're partnering with the best partner they can that's going to offer them the best pricing power, which for now is Google. They initially wanted to work with Anthropic, but from a pricing standpoint, that didn't work out.
They couldn't work with OpenAI because they're, you know, hardcore competitors at this point. So Google is all who was left. And obviously the judge didn't break up the search deal there. So it made sense and it aligned pretty nicely for them.
OK, do we know yet how Apple was able to beat expectations in China? Once again, for the first quarter, the most recent quarter, greater China revenue came in at twenty five point five three billion dollars. Twenty one point eight two was the estimate. You said it minutes ago. It is back in China. You're holding up an iPhone right now. That's what they did.
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