Apple Inc.

Good day and welcome to the Apple Q4 Fiscal Year 2021 earnings conference call. Today's call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Tejas Ghala, Director of Investor Relations and Corporate Finance. Please go ahead.

Thank you. Good afternoon and thank you for joining us. Speaking today first is Apple CEO Tim Cook, and he'll be followed by CFO Luca Maestri. After that, we'll open the call to questions from analysts. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation, and future business outlook, including the potential impact of COVID-19 on the company's business and results of operations. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in Apple's most recently filed annual report on Form 10K and the Form 8K filed with the SEC today, along with the associated press release. Apple assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. I'd like to now turn the call over to Tim for introductory remarks.

Thanks, Tejas, and good afternoon, everyone, and thank you for joining the call today. A year ago, I spoke to you about the atmosphere of uncertainty in which we were living and the way it had come to define our daily experience, both as people and as a company. Today, much has changed, profoundly so. And while we are still living through unprecedented times, we are encouraged by progress around the world. I'm grateful to our teams who have stayed resolutely focused on our customers and the pursuit of innovation on their behalf. We've aimed to help our customers navigate the world as it is, while empowering them to create the world as it can be. Whether it's public health workers managing vaccination campaigns on iPhone, or students returning to classrooms full of iPads, or families staying connected over FaceTime, it is an honor to know that what we make matters. and to see that reflected in the world and in our performance. This fiscal year, we reported $366 billion in revenue, which represents 33% annual growth. We also achieved more than 20% growth across all of our product categories and in every geographic segment. And today, Apple is reporting another very strong quarter. Demand was very robust. And we set a new September quarter record of $83.4 billion, up 29% from last year and in line with what we discussed on our last call, despite larger than expected supply constraints. We estimate these constraints had around a $6 billion revenue dollar impact, driven primarily by industry-wide silicon shortages and COVID-related manufacturing disruptions. Even so, we set an all-time record for MAC and quarterly records for iPhone, iPad, wearables, home, and accessories representing 30% year-over-year growth in products. Our services business performed better than we expected where we hit an all-time record of $18.3 billion and grew 26% year-over-year. And we set quarterly records in every geographic segment with strong double-digit growth across the board. During fiscal 2021, We are nearly one-third of our revenue from emerging markets and doubled our business in India and Vietnam. We are optimistic about the future, especially as we see strong demand for our new products. At the end of the September quarter, we introduced our iPhone 13 lineup, as well as the Apple Watch Series 7, iPad, and iPad Mini, all of which represent significant advances. The iPhone 13 and iPhone 13 mini alongside the iPhone 13 Pro and Pro Max are setting a new standard with their super fast performance, advanced camera systems, longer battery life, and brilliant super retina displays. Customers are loving the 9th generation iPad, which features a beautifully sharp display and twice the storage of the previous generation, as well as the new iPad mini. with its ultra-portable design and impressive speed and performance. And we've been thrilled with the reviews that Apple Watch Series 7 has earned for its larger display, faster charging, and refined design. And just last week, we introduced the completely reimagined MacBook Pro powered by the extraordinary M1 Pro and M1 Max chips. These are our most powerful notebooks ever with game-changing performance and battery life and the world's best notebook display. We think customers are going to love MacBook Pro, whether they're editing video in Final Cut Pro or making music in Logic Pro and so much more. They'll be able to do things never before possible on a notebook. We also announced our all-new AirPods that feature spatial audio and industry-leading sound, longer battery life, and an all-new design. For the home, we added three new colors to our HomePod mini lineup, which offers seamless integration across Apple's products and services. We also announced a new subscription tier to Apple Music called Apple Music Voice, which offers subscribers access to the services catalog of 90 million songs, all through the power of Siri. Across the board, teams at Apple continue to drive unmatched innovation through the seamlessly integrated hardware, software experience, we've long prided ourselves on. iOS 15 and iPadOS 15 have created more ways than ever to stay productive, whether choosing focus to avoid distractions or quick note to capture a thought. macOS Monterey offers new ways to connect with friends and family, get more done, and work fluidly across Apple devices. And watchOS 8 has made Apple Watch even more powerful and more ways than ever to stay active and to track your health on the go. We've never had a more diverse range of services for our customers to choose from, and we've been very encouraged by our performance, which reflects growing customer enthusiasm and satisfaction. In just its first two years, Apple TV Plus has already proved itself to fans around the world. And I want to congratulate the incredible actors, writers, storytellers, producers, and everyone else whose behind-the-scenes work has made that success possible. This quarter, Apple TV Plus won 11 Emmys, including the award for outstanding comedy series for Ted Lasso. That show has continued to bring light and laughter to fans all over the world with its boundless optimism and beloved cast of characters. We couldn't be more proud of our entire lineup of content. From the gripping second seasons of the Morning Show and Truth Be Told to our newest program, Swagger, which is out tomorrow, the response has been incredible. This quarter also saw major updates to Fitness Plus, including the addition of new activities like meditation and Pilates and the announcement of group workouts, a feature that brings fitness and friends together. We also shared that Fitness Plus will soon be available in 15 new countries bringing work apps for every age and skill level to millions more people around the world. And those are just two of the services our customers are loving. This quarter, Apple Card won a JD Power Award for customer satisfaction in its very first year of eligibility. The App Store continues to help people find the apps they depend on to stay productive, creative, and entertained. And on Apple News, we launched a new partner program that expands Apple's support for journalism while creating an even better business opportunity for publishers. And we continue to support our customers around the world. We're glad to report we've opened several new Apple stores. This quarter we opened a beautiful store in Changsha, which is our first store in the Hunan province of China. We also just opened our third store in Istanbul. And we recently added a store in the Bronx, which means we are now in all five boroughs of New York City. All of our stores are now open worldwide and have been for seven weeks. As we enter our busiest time of year, I particularly want to share my gratitude for our retail teams. Customers have never relied on our products more, and our retail teams have truly answered the call. We meet our customers where they are, with many ways to shop through our online and retail stores, and can help them choose the best product for them and get it up and running. We are also excited about our education initiatives. This month, we introduced the Everyone Can Code Early Learners program, offering free resources which help students in elementary school learn coding. We see education not only as a fundamental good in its own right, but as a great equalizing force. A world where all people can access a quality education isn't just a smarter world. It's a more equitable one. That desire to create a more just and equitable world is the guiding principle behind our Racial Equity and Justice Initiative. This quarter, Apple shared plans to expand our $100 million investment by an additional $30 million. Those funds will be used in a number of ways, including the creation of a new global Hispanic-serving institution equity and innovation hub. The hub will dramatically expand the technology and resources for students in the STEM fields. Those programs join our ever-expanding work with historically black colleges and universities, including the now 45 community coding centers and regional hubs serving underrepresented communities across the United States. This month, we were also happy to welcome the inaugural class of developers and entrepreneurs to the Apple Developer Academy in Detroit. The Academy is Apple's first in the United States and is designed to help prepare students for jobs in the thriving iOS app economy, which supports more than 2.1 million jobs across all 50 states. In August, we shared our Impact Accelerator's first cohort of black, Latinx, and indigenous owned businesses whose pioneering work in green technology and clean energy serves many of the communities most impacted by climate change. More broadly, we are already carbon neutral as a company, and this quarter, we made new strides toward reaching our goal of carbon neutrality across our entire supply chain and the life cycle of our devices by 2030. We've made significant product advances in this area. iPad and iPad mini now come with 100% recycled aluminum enclosure. The antenna on iPhone 13 is made up of upcycled plastic water bottles, which marks an industry first. And as our customers are seeing when they purchase iPhone 13, we've redesigned the packaging to eliminate the outer plastic wrap, which will allow us to avoid using 600 metric tons of plastic. This brings us closer to removing all plastic in our packaging by 2025. We've also made good progress toward our goal to one day make our products without taking anything from the earth. With Apple Watch Series 7, for example, 99% of the rare earth elements we use are recycled. Ahead of Prop 26, I'm also pleased to report that we have more than doubled the number of our suppliers who have committed to becoming carbon neutral by 2030. We're very encouraged to see the growth in this area, and we will continue to drive those changes in the supply chain in the months and years to come. We've never viewed our environmental work as a side project. Teams across Apple are pushing this work forward in the same spirit of innovation we bring to our products and services. We are determined to be a ripple in the pond that drives a far greater change. From the pandemic to climate change to inequity and injustice, global challenges won't abide solitary solutions, and we feel a deep sense of responsibility to help. We are incredibly proud of the product lineup we have going into the holiday season, and we are encouraged by the customer response we've seen. And while we cannot know exactly which path the pandemic will take the world down in the months to come, we feel quite confident that this new year will be driven by the values that guide us and by the innovation that defines us. With that, I'll hand it over to Luca for a deeper dive on our performance this quarter. Luca?