RUSH TRANSCRIPT Ross is ░░░░░░░░ a shareholder Courtney is ░░░░░░░░ from pain capital management ░░░░░░░░ know can they guide ░░░░░░░░ that sort of number ░░░░░░░░ asp The average selling ░░░░░░░░ which has been the ░░░░░░░░ driver This is all ░░░░░░░░ iPhone into December we ░░░░░░░░ where this was disappointing ░░░░░░░░ could be little different ░░░░░░░░ read China is one ░░░░░░░░ the big issues not ░░░░░░░░ with the trade wars ░░░░░░░░ with the price of ░░░░░░░░ s currency iPhones are ░░░░░░░░ expensive in dmien We ░░░░░░░░ to see how it ░░░░░░░░ effect the bottom line ░░░░░░░░ What will you be ░░░░░░░░ for You know this ░░░░░░░░ a big sort of ░░░░░░░░ do you think it ░░░░░░░░ been so strong It ░░░░░░░░ of dropped the ball ░░░░░░░░ terms of earnings here ░░░░░░░░ have a specific product ░░░░░░░░ that is unique more ░░░░░░░░ more they start to ░░░░░░░░ that rerating on services ░░░░░░░░ key It consolidates into ░░░░░░░░ here Apple s performance ░░░░░░░░ close the day higher ░░░░░░░░ was a relative outperformer ░░░░░░░░ of technology got it ░░░░░░░░ the second best in ░░░░░░░░ Dow Jones this year ░░░░░░░░ is up more than ░░░░░░░░ so there s a ░░░░░░░░ riding on this quarter ░░░░░░░░ the app and the ░░░░░░░░ forecast am earnings are ░░░░░░░░ tell us about that ░░░░░░░░ streak was at 2 ░░░░░░░░ this is at 47 ░░░░░░░░ million iPhone selling frg ░░░░░░░░ comes in at 793 ░░░░░░░░ was at 751 iPad ░░░░░░░░ 9 7 million services ░░░░░░░░ 17 to 10 billion ░░░░░░░░ apple is saying here ░░░░░░░░ this one time favorable ░░░░░░░░ from a year ago ░░░░░░░░ was an increase of ░░░░░░░░ Other products remember that ░░░░░░░░ the watch up 31 ░░░░░░░░ 4 2 billion finally ░░░░░░░░ that guidance apple saying ░░░░░░░░ to 93 billion It ░░░░░░░░ at 92 9 billion ░░░░░░░░ margins calling between 38 ░░░░░░░░ 38 5 I did ░░░░░░░░ a chance to catch ░░░░░░░░ with Tim cook Let ░░░░░░░░ bring use those comments ░░░░░░░░ average selling price of ░░░░░░░░ if you look at ░░░░░░░░ top end of our ░░░░░░░░ we grew double digit ░░░░░░░░ It gets compounded as ░░░░░░░░ it was a huge ░░░░░░░░ for us the xs ░░░░░░░░ xs max became available ░░░░░░░░ investors there are realities ░░░░░░░░ say he should be ░░░░░░░░ of the second thing ░░░░░░░░ a tune of 7 ░░░░░░░░ and the third is ░░░░░░░░ unprecedented number that we ░░░░░░░░ got it will take ░░░░░░░░ time to get into ░░░░░░░░ demand balance finally on ░░░░░░░░ faster growing services business ░░░░░░░░ telling us we remain ░░░░░░░░ to around 50 billion ░░░░░░░░ had records across the ░░░░░░░░ from the app store ░░░░░░░░ apple music to apple ░░░░░░░░ to apple care we ░░░░░░░░ over 330 million subscriptions ░░░░░░░░ our services and third ░░░░░░░░ it is up 50 ░░░░░░░░ over year Back to ░░░░░░░░ Thank you very much ░░░░░░░░ right First to you ░░░░░░░░ had average selling price ░░░░░░░░ 93 It is a ░░░░░░░░ above the estimate 46 ░░░░░░░░ iPhones sold Are you ░░░░░░░░ with that It seems ░░░░░░░░ little below consensus Yeah ░░░░░░░░ little disappointed with iPhone ░░░░░░░░ Yeah A little disappointed ░░░░░░░░ drum roll in terms ░░░░░░░░ guidance there were words ░░░░░░░░ would guide below the ░░░░░░░░ asp is the key ░░░░░░░░ I m looking at ░░░░░░░░ guidance too Is that ░░░░░░░░ It is light on ░░░░░░░░ We have to Tuesday ░░░░░░░░ of it is how ░░░░░░░░ of is it apple ░░░░░░░░ the revenue forecast is ░░░░░░░░ It is a 4 ░░░░░░░░ range though it is ░░░░░░░░ to 93 billion Yeah ░░░░░░░░ Good bad It missed ░░░░░░░░ little bit of what ░░░░░░░░ s estimates were The ░░░░░░░░ are coming in strong ░░░░░░░░ We are living a ░░░░░░░░ here that have come ░░░░░░░░ so much stronger and ░░░░░░░░ are trading a lot ░░░░░░░░ We ll see the ░░░░░░░░ here with apple I ░░░░░░░░ we ll see the ░░░░░░░░ go further Further or ░░░░░░░░ It is right now ░░░░░░░░ hours I think we ░░░░░░░░ see some of that ░░░░░░░░ stands out to you ░░░░░░░░ It is my favorite ░░░░░░░░ item It is the ░░░░░░░░ stable most predictable If ░░░░░░░░ thing worked I would ░░░░░░░░ it up here like ░░░░░░░░ we are looking at ░░░░░░░░ now I think the ░░░░░░░░ growth rate is about ░░░░░░░░ they were looking for ░░░░░░░░ think they will be ░░░░░░░░ pace to beat their ░░░░░░░░ for what they want ░░░░░░░░ get to in 2020 ░░░░░░░░ will be sort of ░░░░░░░░ most important line item ░░░░░░░░ the next 12 to ░░░░░░░░ months in terms of ░░░░░░░░ they can extract in ░░░░░░░░ of iPhone sales they ░░░░░░░░ to get more dollars ░░░░░░░░ of every user It ░░░░░░░░ a pretty big network ░░░░░░░░ wonder though again I ░░░░░░░░ ask you to do ░░░░░░░░ we have gone to ░░░░░░░░ world where we are ░░░░░░░░ people upgrade less as ░░░░░░░░ get more expensive Average ░░░░░░░░ prices at 793 yet ░░░░░░░░ number of iPhones sold ░░░░░░░░ little less Are we ░░░░░░░░ into this maybe permanent ░░░░░░░░ of you re going ░░░░░░░░ pay more but you ░░░░░░░░ not going to upgrade ░░░░░░░░ much that s not ░░░░░░░░ for apple They want ░░░░░░░░ They want transitions I ░░░░░░░░ the average selling price ░░░░░░░░ telling I think what ░░░░░░░░ people are doing they ░░░░░░░░ willing to pay more ░░░░░░░░ lot of them are ░░░░░░░░ advantage of the apple ░░░░░░░░ plan they are not ░░░░░░░░ all of it up ░░░░░░░░ It is a no ░░░░░░░░ loan it s sort ░░░░░░░░ like if you re ░░░░░░░░ stock trader these things ░░░░░░░░ becoming that much more ░░░░░░░░ devices to have People ░░░░░░░░ willing to shell out ░░░░░░░░ month if they are ░░░░░░░░ much more connected and ░░░░░░░░ much more out of ░░░░░░░░ of the different apps ░░░░░░░░ s the direction they ░░░░░░░░ heading I think you ░░░░░░░░ been less positive on ░░░░░░░░ stock It is moving ░░░░░░░░ 5 after hours You ░░░░░░░░ record profit and higher ░░░░░░░░ selling prices Maybe slight ░░░░░░░░ around guidance and iPhone ░░░░░░░░ What do you think ░░░░░░░░ stock is reacting to ░░░░░░░░ It is what we ░░░░░░░░ been talking about Everything ░░░░░░░░ said so far kind ░░░░░░░░ tracks that it is ░░░░░░░░ good they didn t ░░░░░░░░ that until September One ░░░░░░░░ the biggest didn t ░░░░░░░░ ship and so you ░░░░░░░░ now flat with a ░░░░░░░░ September and then you ░░░░░░░░ passively overtly in this ░░░░░░░░ is they are not ░░░░░░░░ to match what they ░░░░░░░░ in December because they ░░░░░░░░ released the flag ship ░░░░░░░░ it is not a ░░░░░░░░ what I have said ░░░░░░░░ times you re treading ░░░░░░░░ here you re not ░░░░░░░░ your user base you ░░░░░░░░ seeing slightly down volumes ░░░░░░░░ on year you talk ░░░░░░░░ software growth that s ░░░░░░░░ if you want to ░░░░░░░░ it to that cul ░░░░░░░░ sac of users But ░░░░░░░░ stock is down It ░░░░░░░░ not just getting us ░░░░░░░░ iPhone sales They want ░░░░░░░░ sell us on products ░░░░░░░░ of our fi phones ░░░░░░░░ don t want to ░░░░░░░░ on the iPhone alone ░░░░░░░░ here knee jerk reaction ░░░░░░░░ have to be better ░░░░░░░░ that people were complacent ░░░░░░░░ how it because rock ░░░░░░░░ guidance quarter I think ░░░░░░░░ makes sense right here ░░░░░░░░ services thing I think ░░░░░░░░ have gotten ahead of ░░░░░░░░ when it comes to ░░░░░░░░ ton growth of services ░░░░░░░░ problem is apple is ░░░░░░░░ a company that are ░░░░░░░░ you to the services ░░░░░░░░ they have an amazing ░░░░░░░░ profitable ever devised in ░░░░░░░░ That is going to ░░░░░░░░ to give way to ░░░░░░░░ We don t know ░░░░░░░░ perfectibility necessarily of all ░░░░░░░░ that You to moderate ░░░░░░░░ of the optimism And ░░░░░░░░ times trailing Yeah And ░░░░░░░░ high for Not high ░░░░░░░░ services it is software ░░░░░░░░ company It Only 15 ░░░░░░░░ the company right now ░░░░░░░░ this part of cook ░░░░░░░░ that you roll out ░░░░░░░░ phones about a week ░░░░░░░░ two before the quarter ░░░░░░░░ therefore you can always ░░░░░░░░ yeah we didn t ░░░░░░░░ hit the numbers a ░░░░░░░░ of analysts thought we ░░░░░░░░ It is only a ░░░░░░░░ and a half and ░░░░░░░░ lot of people simply ░░░░░░░░ t upgrade or didn ░░░░░░░░ even have time to ░░░░░░░░ you to like the ░░░░░░░░ when they roll out ░░░░░░░░ new phones It makes ░░░░░░░░ harder to dissect I ░░░░░░░░ imagine The reason they ░░░░░░░░ it through to September ░░░░░░░░ because the phone got ░░░░░░░░ much more complicated to ░░░░░░░░ they needed some time ░░░░░░░░ remember we covered the ░░░░░░░░ Supposed to some leading ░░░░░░░░ to September They have ░░░░░░░░ to get it out ░░░░░░░░ It is kind of ░░░░░░░░ last stop to get ░░░░░░░░ before the big sales ░░░░░░░░ the poll day I ░░░░░░░░ t think it is ░░░░░░░░ strategy at all Would ░░░░░░░░ worry about slowing iPhone ░░░░░░░░ I have been listening ░░░░░░░░ this all I am ░░░░░░░░ away at the sort ░░░░░░░░ negativity these are amazing ░░░░░░░░ 800 for a phone ░░░░░░░░ the average selling price ░░░░░░░░ they are selling tens ░░░░░░░░ millions of these a ░░░░░░░░ You know this is ░░░░░░░░ great number apple anybody ░░░░░░░░ this stock in here ░░░░░░░░ almost insane knowing that ░░░░░░░░ will buy it back ░░░░░░░░ you They have so ░░░░░░░░ cash and they are ░░░░░░░░ on all cylinders it ░░░░░░░░ like Tim cook is ░░░░░░░░ most conservative manager in ░░░░░░░░ history of business I ░░░░░░░░ the real issue with ░░░░░░░░ has nothing to do ░░░░░░░░ iPhone it is a ░░░░░░░░ product we have been ░░░░░░░░ this for years It ░░░░░░░░ to do with what ░░░░░░░░ next You can t ░░░░░░░░ doing hardware forever It ░░░░░░░░ working forever They have ░░░░░░░░ of the cash and ░░░░░░░░ growth but what s ░░░░░░░░ I will not tell ░░░░░░░░ Netflix or Tesla I ░░░░░░░░ tell you they should ░░░░░░░░ getting into gaming and ░░░░░░░░ at a company like ░░░░░░░░ which has been under ░░░░░░░░ all my kids do ░░░░░░░░ get their iPad and ░░░░░░░░ games they just need ░░░░░░░░ get into software somewhere ░░░░░░░░ know by the way ░░░░░░░░ you can play games ░░░░░░░░ don t think we ░░░░░░░░ being negative up here ░░░░░░░░ are reacting to the ░░░░░░░░ If you a little ░░░░░░░░ on the revenue side ░░░░░░░░ the phone prices have ░░░░░░░░ up you just do ░░░░░░░░ math it seems apple ░░░░░░░░ ts to sell fewer ░░░░░░░░ No That s supply ░░░░░░░░ demand the phone gets ░░░░░░░░ expensive you sell a ░░░░░░░░ less That s the ░░░░░░░░ That s a good ░░░░░░░░ they ar E selling ░░░░░░░░ phones I think it ░░░░░░░░ a bunch of kind ░░░░░░░░ es the real trading ░░░░░░░░ be tomorrow when real ░░░░░░░░ get up and trade ░░░░░░░░ would expect big institutions ░░░░░░░░ think about buying the ░░░░░░░░ more than selling it ░░░░░░░░ is your take away ░░░░░░░░ about where the growth ░░░░░░░░ coming from I know ░░░░░░░░ m harping on the ░░░░░░░░ side of the business ░░░░░░░░ see about a third ░░░░░░░░ that revenue coming in ░░░░░░░░ the stuff that apple ░░░░░░░░ owns it s like ░░░░░░░░ care and iCloud The ░░░░░░░░ of it is coming ░░░░░░░░ the machinery of the ░░░░░░░░ store I think the ░░░░░░░░ thing is to see ░░░░░░░░ they will find ways ░░░░░░░░ kind of grow that ░░░░░░░░ where they can bundle ░░░░░░░░ media things They are ░░░░░░░░ in television programs that ░░░░░░░░ are owning I think ░░░░░░░░ s going to be ░░░░░░░░ next big driver for ░░░░░░░░ their service is going ░░░░░░░░ grow and how it ░░░░░░░░ be a more stable ░░░░░░░░ of revenue even as ░░░░░░░░ are flattening or doing ░░░░░░░░ It was indicating the ░░░░░░░░ would be around 4 ░░░░░░░░ 5 It is right ░░░░░░░░ there it wasn t ░░░░░░░░ terribly high stakes quarter ░░░░░░░░ is not a deviation ░░░░░░░░ maybe a little less ░░░░░░░░ it is the next ░░░░░░░░ months because one month ░░░░░░░░ ove R in the ░░░░░░░░ I think the context ░░░░░░░░ key Apple shares are ░░░░░░░░ 32 The Dow is ░░░░░░░░ 7 or 8 over ░░░░░░░░ time period Keep that ░░░░░░░░ mind as we watch ░░░░░░░░ move off session lows ░░░░░░░░ around 3 or a ░░░░░░░░ more Stay here We ░░░░░░░░ continue to monitor apple ░░░░░░░░ reactions to the earnings ░░░░░░░░ about whether the stock ░░░░░░░░ a buy on this ░░░░░░░░ We ll tell you ░░░░░░░░ to listen for coming ░░░░░░░░ Yeah And founders fund ░░░░░░░░ to take the stage ░░░░░░░░ ll try to listen ░░░░░░░░ that We have Peter ░░░░░░░░ fighting about the numbers ░░░░░░░░ re watching CNBC, firs