The call begins with an introduction by the director of investor relations, followed by remarks from the CEO and CFO. Key topics include forward-looking statements, potential impacts of tariffs and trade measures, and the company's financial outlook.

The company reported a 5% increase in revenue to $95.4 billion and an 8% rise in diluted EPS to $1.65, setting records in various countries and achieving a 12% growth in services. Plans include a $500 billion spend over four years in the US, expansion in multiple states, and opening a new advanced server manufacturing factory in Texas. The iPhone 16 lineup, particularly the iPhone 16 E, was highlighted for its energy efficiency and long battery life, while Mac revenue grew by 7%.

Apple introduced significant updates to its Mac lineup, featuring a new M4-powered MacBook Air with enhanced performance and a new sky blue color. The Mac Studio, equipped with M4 Max and M3 Ultra chips, is the most powerful Mac ever, capable of running large language models in memory. iPad revenue saw a 15% increase, driven by the new M3 iPad Air. Wearables, home, and accessories revenue reached $7.5 billion, despite a 5% decline from the previous year.

Apple highlights the impact of its products on health and fitness journeys, introduces advancements in hearing aid features, and showcases innovations in entertainment and AI, including the Apple Vision Pro, new Apple TV Plus content, and AI-integrated features across its ecosystem.

The company has significantly reduced its emissions and increased the use of clean energy and recycled materials, aiming for carbon neutrality by 2030. For the June quarter, assuming no changes in current tariff rates and policies, an additional cost of $900 million is estimated due to tariffs. The company remains confident in its ability to innovate and run its business sustainably, looking forward to its Worldwide Developers Conference next month.

Apple reported a Q1 2023 revenue of $95.4 billion, up 5% YoY, driven by growth in iPhone, iPad, Mac, and Services. Despite a 2.5 percentage point FX headwind, the company saw revenue records and all-time highs in installed base across product categories. Services revenue hit $26.6 billion, up 12% YoY, with strong momentum in customer engagement and paid subscriptions. iPhone revenue grew 2% YoY, Mac revenue increased 7%, and iPad revenue rose 15%. The company maintained strong customer satisfaction and loyalty across markets.

Organizations are increasingly investing in Apple products for productivity and engagement, with notable adoptions by KPMG and newbank. Apple has also integrated its Vision Pro technology with a leading engineering software provider. Financially, the company ended the quarter with $133 billion in cash and marketable securities, returning $29 billion to shareholders and authorizing an additional $100 billion for share repurchases. The board has raised the dividend by 4% to 26 cents per share, with plans for annual increases. For the June quarter, the company expects low to mid-single-digit revenue growth year-over-year, a gross margin between 45.5% and 46.5%, operating expenses between $15.3 billion and $15.5 billion, and a tax rate around 16%.

Apple expects the majority of iPhones sold in the U.S. to originate from India by the end of the fiscal year, with Vietnam becoming the origin for nearly all iPads, Macs, Apple Watches, and AirPods sold in the U.S. due to tariffs. The company attributes most of its current tariff exposure to a 20% tariff on products originating from China. There was no significant evidence of demand being pulled forward in the March quarter due to tariffs, and channel inventory levels remained similar for iPhone and other products.

The impact of tariffs is discussed, with surprise over the current low cost, but uncertainty prevails regarding future tariffs post-June due to ongoing investigations and unpredictable factors.

Apple experienced a 2% decline in China in the March quarter, with sequential improvement from a 11% drop in December. The company attributes part of the improvement to subsidies, noting that while some products benefited, those priced above 6000 RMB were not eligible. Positive trends include new customer acquisition for Mac, iPad, and Watch, and iPhone and iPad leading in urban China. The company highlights the impact of foreign exchange and stable channel inventory.

The company discusses its strategies to manage inventory and supply chain amidst trade policy uncertainty, emphasizing ongoing engagement and optimization efforts. It also addresses the decline in product gross margins, attributing it to factors such as mix, seasonal loss of leverage, foreign exchange, and cost savings.

The discussion revolves around the impact of tariffs on cost of goods sold, unique factors benefiting the June quarter, and expectations for revenue growth, particularly in services, considering foreign exchange effects.

The discussion explores the impact of sourcing more products from the US and other supply chain adjustments on Apple's gross margin trajectory. Notably, significant investments in domestic production, such as the TSMC project in Arizona, are highlighted as factors influencing cost structures. Additionally, the conversation touches on the varying profitability of Apple's products and services, and the management's approach to balancing units, revenue, and margins. The impact of regulatory changes, such as the emergence of alternate app stores in Europe due to the Digital Markets Act, on developer behavior and company results is also briefly addressed.

The discussion highlights the company's strategy to enhance supply chain resilience by diversifying sources of supply to mitigate risks, following recent changes. The CFO clarifies that the financial outlook accounts for current tariff rates and macroeconomic conditions, emphasizing no quantifiable impact on demand from tariffs in the recent period.

During the March quarter, markets where Apple Intelligence was available showed stronger year-over-year performance for the iPhone 16 family. The rollout of additional languages for Apple Intelligence occurred in April, impacting Q3. Questions were raised about consumer reactions to the macro environment, including the tariff impact and US GDP shrinkage, with the company noting strong results in Q2 and not predicting future economic conditions.

The discussion covers Apple's $5 billion investment in various states, including capital expenditures and operational expenses for facility expansions and server manufacturing. Additionally, it explores the capabilities of current smartphone specifications for future AI inference needs and addresses questions regarding the delivery of new software systems, investments in R&D, and the potential impacts of ongoing legal cases on Apple's services business.

The company discusses its hybrid strategy involving both third-party and self-owned data centers, emphasizing the importance of investing in business-first foundational AI models while also considering partnerships.

Apple is excited about launching the iPhone 16e this quarter, featuring their C1 modem, marking a strategic move towards internal silicon production for better product focus on battery life and customer needs.