Apple Inc.

Good afternoon, everyone, and thank you for joining us. I'm pleased to report another record quarter for Apple. Revenue came in at $124.3 billion, up 4% year over year, with strong growth across both products and services. Our iPhone revenue reached $69.1 billion, reflecting continued customer enthusiasm for iPhone 16, particularly the Pro models with their advanced camera capabilities and Apple Intelligence features. We're thrilled with the customer response. Mac revenue grew to $9.0 billion, driven by the latest MacBook Pro models with M4 chips. iPad revenue was $8.1 billion. And our Wearables, Home and Accessories segment came in at $11.7 billion. Services had another outstanding quarter with $26.3 billion in revenue — a new all-time record, growing 14% year over year. We now have over 1 billion paid subscriptions across our services portfolio.

Thank you, Tim. I'll provide additional details on our financial performance. Gross margin was 46.9% for the quarter, up 30 basis points versus last year. Products gross margin was 39.3%, and Services gross margin was 75.1%. Operating expenses were $15.4 billion. We returned over $30 billion to shareholders during the quarter, including $3.8 billion in dividends and $26 billion in share repurchases. Looking ahead to our fiscal Q2 2025 guidance: we expect revenue to be in the range of $89 to $91 billion, consistent with the prior year period. We expect gross margin between 46.5% and 47.5%.

Tim, can you talk more about the AI adoption rate? Are you seeing Apple Intelligence driving actual upgrade cycles?

Great question, Erik. We're seeing very encouraging signals. The features that Apple Intelligence enables — writing tools, photo enhancements, Siri improvements — are resonating strongly with users. We believe we're still in the early innings of the AI supercycle, and Apple is uniquely positioned given our tight hardware-software integration.

Luca, can you give us more color on Services growth drivers?

Certainly. App Store, Apple Music, iCloud, AppleCare, and Apple TV+ all contributed. The geographic diversification is strong — double-digit growth across all five operating segments. We see the trajectory continuing to improve.