Apple’s fourth-quarter results for 2019 are in. Here’s our transcript of the call.
Apple CEO Tim Cook and CFO Luca Maestri spoke with analysts during the company’s Q4 2019 earnings call. Here’s our ongoing live transcript of their remarks! If you want some quick analysis on Apple’s results, we recommend checking out the awesome charts from Six Colors.
Cook’s opening remarks
Thank you, Nancy. Good afternoon and thanks to all of you for joining us, especially those of you listening in on our new noise-canceling AirPods Pro, which are available beginning today. This was Apple’s highest revenue in a September quarter ever. And I want to take you through some of the highlights before we get into greater detail on the conclusion of a remarkable fiscal 2019 for Apple. We achieved revenue of $64 billion in the quarter at the high end of our expectations, even in spite of a predicted foreign exchange drag of almost a billion dollars. Geographically, we set new Q4 revenue records in the Americas and rest of Asia Pacific and saw further improvement in our revenue trends in Greater China. In iPhone, where customers have only begun to get their hands on the strongly popular and unmatched iPhone Eleven and iPhone Eleven pro models, our year over year performance continue to improve. More on that in a moment. Outside of iPhone, our September quarter revenue was up 17%. We reached a new all time high for services, with growth accelerating to 18%. We generated well over 50% revenue growth from wearables. And I’m thrilled to say that we set Q4 records for wearables in each and every market we track. We’ve got a lot to cover, so let’s dove right into the details. iPhone revenue in the September quarter was $33 billion. This 9%decline over last year is a significant improvement over the 15% decline we saw across the first three quarters. The significant upswing in demand in the final part of the quarter is mirrored in the overwhelmingly positive reviews, customer feedback, and in-store response we’ve seen for this new generation of devices. Not to mention a wave of the best photos you’ve seen from a smartphone. iPhone 11 features the Apple-designed A13 bionic, the fastest, most powerful chip ever in a smartphone, plus an all new dual camera system and even longer, all day battery life all wrapped in six great new colors. Since its launch, the iPhone 11 has quickly become our best selling iPhone. iPhone 11 Pro and iPhone 11 Pro Max deliver even more advanced performance for users who want the very best out of their smartphone. The new Super Retina XDR Display is the brightest ever in an iPhone, and the new triple camera system provides a pro level photography experience with an ultra-wide, wide, and telephoto camera. All three of our new iPhones feature Night mode, delivering huge improvements to photo capture in low light environments either indoors or outdoors. They also produce the highest quality video in a smartphone, supporting 4K video with extended dynamic range for more highlight detail and cinematic video stabilization. iOS 13 is driving user experience forward across the iPhone family with a bold new look and dark mode, major updates to the apps our customers use every day, such as photos and maps, new ways to help protect their privacy with Sign-in with Apple and performance improvements across the entire system. For services; Revenue was $12.5 billion. That’s up 18% over last year and it beats the previous record set in the June quarter by more than a billion dollars. This isn’t a local phenomenon. We saw double digit services, revenue growth in all time records and all five of our geographic segments. And it wasn’t a narrow success either. We established new all time highs for multiple services categories, including the App Store, Apple Care, Music, Cloud Services and our App Store Search Ad business. We are well on our way to accomplishing our goal of doubling our fiscal year 16 services revenue during 2020. I want to touch on a number of services in brief. We had all time revenue record revenues from payment services for Apple Pay, revenue and transactions more than doubled year over year, with over three billion transactions in the September quarter exceeding PayPal’s number of transactions and growing four times as fast. Apple Pay is now live in 49 markets around the world, with over 6,000 issuers on the platform. We believe that Apple Pay offers the best possible mobile payment experience and the safest, most secure solution on the market. We’re glad that thousands of banks around the world participate. Apple Card launched in the U.S. in August, and we’ve been thrilled by the positive reception we’ve seen.
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