Tim Cook: We’ve really concluded that we can do both. That if you look at it, what has happened over the last several years is that, employees are in a position in many companies to choose their own technology that is the best for them. And so, it sort of took some of the central command from the traditional company and decentralized the decision-making. That is a huge advantage for Apple, because there’s a lot of people out there that want to use a Mac. They’re using a Mac at home. They’d like to use one in the office as well. iPad has also benefited from that. Vision Pro, it’s — when you look at the ton of use cases, I mean, we’re starting with a million apps and 600 plus that are — have been designed particularly for Vision Pro.
When I look at what is coming out of Enterprise, it’s some of the most innovative things I’ve seen come out of Enterprise in a long time. And so, I think there’s a like there is for the Mac and iPad, and of course, iPhone has been in enterprise since the early days of iPhone. I think there’s a nice opportunity there for Vision Pro as well.
Krish Sankar: Great. Thanks a lot Tim. Very interesting to hear. Thank you.
Suhasini Chandramouli: Thank you, Krish. Operator, can we have the next question, please?
Operator: Our next question is from David Vogt with UBS. Please go ahead.
David Vogt: Great. Thanks guys. And I have two questions as well. So, Tim and Luke, I appreciate the strength in the emerging markets like India and the other names that you kind of listed on the call, but can you maybe spend some time on the Americas? Obviously, that was relatively flat, you touched on China, but what are you seeing in that market from the carriers here in the States? And is the sales cycle elongating or the replacement cycle elongating? And in your view what has to change to kind of maybe re-accelerate that business in the America’s, particular in the iPhone business? And then on sort of — I just want to make sure I understand sort of the guide. So when I think about the $5 billion pull forward last year in the March quarter from a channel fill perspective, even if I back it out last quarter or I back it up this quarter, the March quarter, this would be sort of the softest quarter since the COVID pandemic.
Obviously, I know the Americas as I just touched on is a little bit softer than China, which you cleared up earlier. But how do you think about the differences in sort of the macro conditions by region? And again, do you have a sense for are we nearing a trough from a macro demand perspective or how long do you think this particular weakness persists? Thanks.
Tim Cook: Let me take the first part of your question about America. If you look at the U.S., which obviously drives the vast, vast majority of the revenue in America, we grew in the December quarter from an iPhone business point of view and the install base hit an all-time high. If you look at the replacement cycle, it’s very difficult to measure the replacement cycle at any given point. And so, what we focus on internally a lot is the active install base and the — obviously, the sales over usually a cycle and we feel better about those things. If you look at the — who’s selling what in the U.S., the iPhone is four out of the top five selling smartphones in the US. And of course, the customer satisfaction in the U.S. as we alluded to earlier is 99%. So we feel very, very good about what our position is in the U.S.
Luca Maestri: And I would add to that, keep in mind, obviously, the extra week that we had a year ago that obviously makes the compare more — a bit distorted. On the March quarter guide, I would point to you that, obviously, the COVID years had a lot of, let’s say, turmoil in it, a lot of volatility that typically you wouldn’t see. If you look at our sequential progression from December to March this year versus pre-COVID versus like a more normal environment, it’s actually stronger than those years.
David Vogt: Got it. Thanks, guys.
Suhasini Chandramouli: Thank you, David. Operator, can we have the last question, please?
Operator: Thank you. Our last question is from Ben Reitzes with Melius Research. Please go ahead.
Ben Reitzes: Yes. Hi. Thanks. Appreciate it. Two questions, if I can sneak them in. Just wanted to clarify on China. Tim, I think last quarter you still thought it was a growth market. Obviously, there’s some concerns with the — recently and given what we saw in the quarter, is there something that we can kind of point to where you feel that that market can resume growth in the future? And I’m wondering if you’re still upbeat about that prospect. And then I just have a quick follow up.
Tim Cook: Ben, we’ve been in China for 30 years. And I remain very optimistic about China over the long term. And I feel good about hitting a new install base number, high watermark and very good about the growth in upgraders year-over-year during the quarter.
Ben Reitzes: Great. Thanks Tim. And just in terms of AI, I know you’re not going to talk about your plans, but do you believe — are you a believer in the edge thesis that AI and processing on smartphones and devices like yours is going to have a huge role in AI and AI apps and that it’s something you guys can take advantage of.
Tim Cook: Let me just say that, I think there’s a huge opportunity for Apple with GenAI and AI. And without getting into to more details and getting out in front of myself.
Ben Reitzes: Thanks Tim.
Tim Cook: Yes, Thanks, Ben.
Suhasini Chandramouli: All right. Thank you Ben. A replay of today’s call will be available for two weeks on Apple Podcasts, as a webcast on apple.com/investor and via telephone. The number for the telephone replay is 866-583-1035. Please enter confirmation code 0106234 followed by the pound sign. These replays will be available by approximately 5 p.m. Pacific time today. Members of the press with additional questions can contact Josh Rosenstock at 408-862-1142 and financial analysts can contact me, Suhasini Chandramouli, with additional questions at 408-974-3123. Thanks again for joining us.
Operator: Once again, this does conclude today’s conference. We do appreciate your participation.
