In the earnings call, Cook cited "extreme conditions unlike anything we've experienced before just about anywhere we look," pointed to commodities prices and weakening currencies. As about two thirds of the company's revenue is generated outside of the U.S., foreign currency fluctuations have a "very meaningful impact on our results."
But looking at the international marketplace with a long-term view, Cook said Apple was not seeking to retrench — even in places like Russia that have been hit hard by the collapse in the price of oil. In fact, "this is exactly the period that you want to invest" around the globe, Cook said, later pointing to the company's efforts in India and China.
The company "remains incredibly strong" despite the many challenges across the world, Cook said, revealing that the company saw a record number of switchers from Android to iPhone in the quarter. He also said the tech giant saw the best quarter "by far" for its Apple TV platform, and that it had logged a new quarterly record for Apple Watch sales, and that consumers have spent "billions" with Apple Pay.
The tough global environment may have led Apple to guide below expectations: The company said that it expected second quarter revenue between $50 billion and $53 billion, while the average analyst estimate had been for $55.61 billion, according to StreetAccount.
"I would take the Q2 guidance very seriously," said Estimize's Christine Short. "Usually later in the product cycle, Apple gives pretty spot on guidance. I'd look at this guidance, it was lower than what analysts were expecting and I'd take it quite seriously."