Well, let us talk about Apple cold the results just barely beating analysts estimates. Here to talk about Apple's results and mall we have Tom Giles, Bloomberg take editor and Tom guidance from Apple. Can we fill in the gaps here? What are the next couple of quarters gonna look like? Yeah, well, thanks for having me. The big takeaway was that the current quarter they as you said, there's not gonna be any guidance. But what what what they did say is
that sales growth will accelerate in the current quarter. Now it's a pretty low bar two percent that we had in the most recent quarter, but we will see an increase in the pace there. Uh so an important and and you know the shares did rise in late trading, So the market took away that Apple so far is
weathering the downturn relatively well. Um. And they even though they missed on a couple of their different products, they missed analysts estimates, they did uh surpass Wall Streets projections on the iPhone, which is their biggest product, all important product, and they were able to um uh, they were able to uh surpass the expectations. What they said there was that they're not seeing a rollback in demand for the iPhone,
and in fact, they still continue to suffer from supply constraints. Um, so they're not seeing at this point that recession fears and inflation pressures here in the US and elsewhere are affecting demand for that. You know, as Tim Cook put it on the call, we really didn't test the outer limits of of demand for the phone just because there worthy supply constraints. Is this company still so heavily reliant on the phone that it's kind of make or break
when you're talking about the iPhone? What about the Max? What about some of the things that are purchased through the apps or or wearables? I mean, is there a diversification in the portfolio to absorb any disappointment with iPhone sales? Or is that not even a part of the story here there it's really a company that's about a phone. No, it is definitely part of the story. Um, they have become overly reliant on it. This is a theme that
analysts and investors have come back to time and time again. Um, the Mac. You mentioned the Mac. The they missed projections on the map on Mac sales. Again, they were tripped up by supply constraints there UM, in particular the lockdowns in Shanghai, China. We're a real issue when it comes to Mac production, So UH, they weren't able to you know, pull it out on that side of things. UM iPad as well services. UM came in a little bit below Projections and services in a really important area for Tim
Cook right now. He is targeting, you know, that to become a very big part of their overall sales. This is this is the kinds of things that you buy in the app store, this is Apple TV, etcetera. He spent time on the call talking about how their their new shows, their new shows are critically acclaimed, their winning awards, UM, and they are doing everything they can to make Apple services and attractive product. Came in a little bit low on the revenue side. In that regard, he talked about
digital advertising softness. He talked about UM, which is a theme that we've seen with Meta, It's a theme we saw with app Alphabet UM. Digital advertisers are really concerned about UM pullbacks and consumer spending and they are tightening their marketing budgets. So that's that that UH, is a factor that affected Apple in in the most recent quarter. A couple other things of note. Foreign exchange headwinds were an issue. UM. The supply as I said before, the
UH supply chain constraints UH. The good news there UH lucam history. The CFO said, those are going to abate in the current quarter. They're not going to be as bad as they were in the most recent quarter. We'll see. Tim Cook was talking about investing through downtowns as well. It's a strategy that he says has worked for them in the past, but also about being deliberate about where they invest. Does he mean services when he's talking about this,
what is he speaking to you specifically? Particularly we're talking about a slowdown in UH in in hiring UM. That's an area that the big tech companies UM have invested heavily in, and one after another, Apple included are tapping the brakes on the pace at which they hire. Their being more strategic, more deliberate. Speaking of the hiring a story, I'm wondering where they are with respect to remote working
and allowing their employees. I remember Cook at one point in the pandemic kind of pounding the table saying it's important for this culture to have everyone in house. Have they moved away from that thinking. There's there's certain there are certain products that Apple puts out that where you really need people in the office where you need collaboration. When you're working on a piece of hardware, which is
which is a big part of the Apple's revenue base. Uh, you really want people in a room together collaborating working on that software. There's a lot more flexibility. Tim Cook has said he wants people uh back in the office. Not every day. Uh, but that's certainly something that they that they have been asking for and some employees are chasing at it. Uh go quickly. Um. Yeah, look, we just got shares off of leaving in percent today. What
analysts saying about the outlook twenty seconds? Yeah, right now. The immediate response to the results was a very positive one. Um, and will look for analyst reports tomorrow to see what people think after the current quarter. All right, Tom, stuff always a pleasure. Thanks for being with us, Tom Giles. There he is Bloomberg's tech editor, joining us from San Francisco here on Daybreak Asia