Hello everyone. In today’s update, we will focus on Apple’s 4Q23 earnings Q&A session with analysts. After recapping each question-and-answer exchange that occurred on the call between Apple and sell-side analysts, we will go over my response to the exchange. Let’s go beyond what was talked about on the call.

NOTE: The following earnings call questions (“Q (Sell-Side Firm)”) and answers (“Cook” or “Luca”) have been cut, summarized, paraphrased, and rearranged for clarity. To read the full question and answer exchanges, Yahoo Finance offers a written transcript here.

Reading Between the Lines of Apple’s 4Q23 Earnings Q&A With Analysts

Customer Behavior

Q (Goldman Sachs): Are consumers opting for higher storage iPhone models or iCloud+? How are you thinking about trade-offs between the two storage options?
Cook: There have been no significant changes, although we started selling iPhone 15 Pro Max at 256GB.

My response: iCloud+ has long-term momentum. Attributes such as Family Sharing and being included in Apple One are iCloud+ adoption tailwinds. New iCloud+ features such as iCloud Private Relay and Hide my Email add to the paid service’s appeal.

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