Apple CEO Tim Cook presented his final earnings call, marking the end of an era. Analysts had expected per-share earnings of $1.89 on revenue of just short of $109 billion, according to Yahoo Finance. The company reported wearables and accessories revenue of $7.88 billion in the quarter.
Despite supply constraints and foreign exchange headwinds, Cook said, "We were able to achieve this despite supply constraints and sequential foreign exchange headwinds." He also noted positive early reviews of the new Siri, underscoring Apple's philosophy of building private, personal-context AI.
Looking ahead, Cook expressed confidence in demand: "We continue to expect high levels of demand." However, he cautioned that "we expect the impact from the supply constraints to increase significantly sequentially." Memory prices continue to rise, and Cook noted, "We expected to pay significantly more in the June quarter than the March quarter," adding, "For September, we expect to pay even higher memory costs."
A Handover of the Mic
In a change to the usual format, Cook took a moment to talk about himself and the handover to John Ternus, who will lead Apple's earnings calls going forward. Cook praised Ternus, saying, "He is truly one-of-a-kind," and added, "The transition is going seamlessly." He also expressed his optimism: "I truly have never been more optimistic."
Cook has not missed an Apple earnings call in the 15 years since he became CEO, participating in around 60 calls. Steve Jobs last spoke on an Apple earnings call in October 2010, where he quipped, "I just couldn't help dropping by for our first $20 billion quarter." Cook also joked about his post-call ritual, saying he takes a walk across Apple Park to decompress, referencing a 2020 comment about the campus: "The sound and the look [of Apple Park] is unbelievable."
Apple's stock (AAPL) fell about 8% in after-hours trading after the earnings report.
On his final earnings call, every analyst who asked a question thanked Cook for his time in charge of the company. Apple recently touched a $5 trillion market cap.
