Thread by @neilcybart

iPhone: 41.3M units
iPad: 11.6M units
Mac: 3.7M units

Apple 4Q18 revenue guidance: $60B to $62B

Decent range vs. expectations

Apple's "Other Products" revenue: $3.74B.
My expectation: $3.77B.

Results imply strong Apple Watch and AirPods sales.

Apple Services revenue: $9.548B
My expectation: $9.518B

Huge iPhone ASP = $724.

Doubt many were expecting such high ASP.

Apple's Greater China revenue growth: 19% year-over-year (Apple's second-best segment)

Apple is doing alright in China.

Overall Revenue Growth (last quarter)

Facebook: 42%
Amazon: 39%
Alphabet: 26%
Microsoft: 17%
Apple: 17%

Apple's R&D expense is like a rocket. $3.7B last quarter. That's more than Apple spent on R&D in 2012 (the entire year).

And here's where all of that Apple R&D expense is likely going:
aboveavalon.com/notes/2018/3/1…

Apple sold 41.3 million handheld computers over the past three months at an average selling price of $724 each.

Apple 3Q18 Earnings Call Begins

Tim Cook: It's all about iPhone, Services, Wearables.

iPhone X was the most popular iPhone in the quarter.

Apple Services revenue driven by more people entering the Apple ecosystem.

Paid subscriptions surpassed 300M - up 60% year-over-year.

30,000 apps now offer subscriptions.

Number of articles read on Apple News doubled year-over-year.

Wearables.

Revenue up 60%.

$10B wearables revenue over past year.

Apple Watch - mid 40% growth.

(YES. Apple giving much more detailed information on wearables sales.)

18 minutes of prepared remarks from Cook. Long.

iPhone channel inventory down 3.5M. (That's a big drawdown.)

Implies iPhone demand was better than reported numbers imply.

Apple: iPad and Mac sales were impacted by tough year-over-year compares as new products were launched at WWDC 2017.

(yep.)

Forgot for a moment there is still a Q&A section left.

Tim Cook sounds extra calm (or tired).

Katy Huberty (Morgan Stanley) asking Apple about its 3-5 year product pipeline for Services.

Tim Cook:

Tim Cook: We priced iPhone X at a level that represented the value of it. And we couldn't be happier that it's the top-selling iPhone since launch. All of our higher-priced iPhones are seeing good sales. We learned people will pay for innovation.

Apple: The top three smartphone models sold in urban China were iPhones.

Shannon Cross to Tim Cook: What about tariffs? Are you scared?

Cook: Tariffs are a tax on the consumer. U.S. trade relations with some countries need to be fixed but tariffs aren't the right approach. Going through latest list of tariffs now to see if we are indirectly impacted.

Question to Tim Cook about Oprah Winfrey.

(Didn't see that one coming.)

Tim Cook: We think we can make some great original content with Oprah.

We have some talented folks working on a video project that we aren't ready to talk about yet.

Apple: Apple TV unit sales and revenue were "very strong." Third-party video subs through our stores are up 100% year-over-year. All the things we see in our business are pointing to major changes in the video space.

Tim Cook: We took the leadership position in music streaming in North America and Japan (and other countries are following suit).

Shots fired.

Tim Cook: The smartphone market is very healthy and it's the best business for someone like us to be in. It doesn't matter what it does on a quarter-to-quarter basis.

Tim Cook: We have never done any analysis internally about how the iPhone battery swap program has impacted iPhone sales. We don't care.

Tim Cook: Our home business is bigger than just HomePod and Apple TV. It's iPhone, Mac, iPad, etc. In terms of Siri access points, there are a lot of them in the home.

Cook pouring some cold water on the idea that "tech in the home" is experiencing a major revolution. Instead, iPhone remains important in home.

CALL OVER.

Transcript of these tweets will be available as long as Twitter exists.

When an analyst wastes a question to ask Apple about product roadmap details on the earnings conference call.
Me: