【Earnings Highlights and Outlook】
- Revenue: $124.3 billion, up 4% year-over-year, an all-time record
- EPS: $2.40, up 10% year-over-year
- Services Revenue: All-time record of $26.3 billion, up 14% year-over-year
- Active Device Install Base: Over 2.35 billion, a new record
- Q2 FY2025 Outlook: Total company revenue expected to grow low to mid-single digits year-over-year

【Q&A Highlights】

Q1: How is Apple Intelligence impacting iPhone demand and what features are users using most often?
- Markets where Apple Intelligence was rolled out saw stronger year-over-year performance for iPhone 16 family
- Popular features include writing tools, image playground, Gemoji, visual intelligence, and photo cleanup
- Early indications are positive, but limited data due to recent release

Q2: What factors are affecting Apple's performance in China?
- Greater China revenue down 11% year-over-year
- Over half of the decline driven by changing channel inventory
- Competitive market and macro factors influencing results
- Recent fiscal stimulus announced in January, not affecting December quarter

Q3: How does Apple view the potential impact of lower compute costs, particularly in light of the Deepseek situation?
- Apple believes innovation driving efficiency is generally positive
- Company's tight integration of silicon and software continues to serve them well
- Apple maintains a prudent approach to expenditure and leverages a hybrid model

Q4: What is Apple's perspective on future iPhone innovation and form factor changes?
- Tim Cook expressed optimism about the product pipeline
- Believes there's still significant room for innovation in smartphones

Q5: Can you provide more details on the record iPhone upgrades and factors driving this trend?
- All-time record for iPhone upgrades
- iPhone 16 outperforming iPhone 15 from launch
- Markets with Apple Intelligence launched outperformed those without

Q6: How is Apple performing in emerging markets, particularly India?
- Strong results in several emerging markets
- India set a December quarter record
- iPhone was the top-selling model in India
- Apple plans to open four new stores in India

Q7: What factors are influencing gross margins for the March quarter?
- Guidance of 46.5% to 47.5%
- FX headwinds expected to impact revenue growth and margins
- Offset by favorable costs and relative mix of services

Q8: How is the services business performing, and what are the growth drivers?
- Services reached an all-time record of $26.3 billion, up 14% year-over-year
- Strong momentum across all geographic segments and service offerings
- Over 1 billion paid subscriptions across the services platform

Q9: What drove the strong performance in Mac and iPad, and how sustainable is this growth?
- Mac revenue up 16%, driven by strong uptake of new products
- iPad revenue up 15%, driven by iPad Air and entry-level iPad
- Over half of iPad sales went to new customers

Q10: How is Apple approaching supply chain planning in India?
- Manufacturing in India serves both domestic market and exports
- Requires certain economies of scale to make economic sense
- Balancing production for domestic use and export markets

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.