Episode summary
Apple Sales Crush Estimates in Record Quarter for the iPhone | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 38 min · Hosts: Carol Massar, Tim Stenovec · Guests: Mark Gurman, Ed Ludlow, Tom Narayan, Lauren Goodwin
Summary
Apple’s holiday quarter was the centerpiece of the show: revenue rose 16% to a record $143.8 billion, far ahead of Wall Street and above Apple’s own forecast, with the iPhone 17 driving the beat. Mark Gurman argued the result was a huge validation of Apple’s product cycle, saying the company had “bought itself a very long time” on investor patience even as questions about AI remain unresolved. Ed Ludlow added that the iPhone 17’s new design and launch timing helped, especially in Greater China, where revenue rebounded sharply.
The discussion kept returning to Apple’s strategic gaps. The hosts and guests said the company is relying on Google for AI infrastructure while it works out a longer-term plan, and they framed AI and succession as the two most important questions for the next call. They also said Apple’s supply-chain discipline helped it absorb high memory-chip prices, preserving margins through advance buying and strong leverage with suppliers.
The episode then broadened to Tesla and markets. Tom Nion of RBC said Tesla is increasingly being valued as an autonomy and robotics company rather than a car company, while Lauren Goodwin of New York Life Investments said inflation remains the biggest near-term market risk, with geopolitics more of a background force than the main catalyst for volatility.
Key takeaways
- Mark Gurman said Apple’s record quarter was a “home run” and gave Tim Cook time to keep investors focused on execution rather than AI gaps.
- Ed Ludlow said the iPhone 17’s first new design in half a decade helped drive the beat, especially in Greater China.
- The guests said Apple is leaning on Google for interim AI support because it has no strong internal model strategy yet.
- The discussion said Apple’s supply-chain scale and advance purchasing helped shield margins from high memory-chip prices.
- Tom Nion said Tesla should be valued as an autonomy and robotics company, not as a traditional car maker.
- Lauren Goodwin said inflation, not geopolitics, is the key risk that could break the market’s current consensus.
Notable quotes
“this is a massive massive massive quarter. Uh this is a home run, their greatest quarter ever by orders of magnitude”
“they just bought themselves a very uh long time with this just insanely great quarter”
“it's not that they're waiting it out, it's that they have no choice. They have nothing internal”
“The car business is is is in the past really”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenc on Bloomberg Radio.
Well, got to say investors liking this uh report in the aftermarket. Stocks still up about 2% here uh in the uh postmarket trade. Hey, let's see what uh Bloomberg News managing editor for Global Tech, Consumer Tech, uh thinks about this. He is Mark German. Knows everything about this company. Lots of exclusives. This feels pretty good.
Tim Cook gets to keep his job, right? uh at least for now. Um this is a massive massive massive quarter.
Uh this is a home run, their greatest quarter ever by orders of magnitude. It's a gigantic beat on overall revenue. Uh China is back.
Uh you have a big beat on um the iPhone in particular, $85 billion quarter is just insane. Uh the installed base, 2.5 billion. The numbers are just beyond excellent.
Uh we could ignore the fact they missed on wearables, home and accessories. We can ignore the fact they missed on Mac. We could ignore the fact that they barely uh you know crossed expectations on services.
I guess none of that matters when the iPhone is selling so well.
Uh but still there's the big existential question of what's next. Um it's an important question because of AI and Apple absolutely needs to figure out its AI strategy. There needs to be an AI reckoning of some sort there. uh but they just bought themselves a very uh long time with this just insanely great quarter.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- apple earnings
- iphone demand
- ai push
- tesla earnings
- geopolitical risks
Companies and tickers mentioned
- AAPL
- TSLA
- Apple Inc.
- Tesla
- RBC Capital Markets
- New York Life Investments
- Bloomberg
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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