5G Gives Apple 'Once-in-a-Decade Opportunity,' Says Cook

5G is a “once-in-a-decade opportunity” to expand iPhone's "large, loyal and growing installed base," and appeal to Android "switchers," said Apple CEO Tim Cook on a Thursday investor call. Apple is supporting the 5G rollout with the strongest iPhone lineup "we've ever had by far," he said. “We are very bullish on this cycle.”

Carrier offers in the U.S. are “very aggressive,” said Chief Financial Officer Luca Maestri, calling that good for consumers “and ultimately very good for us.” Apple sees “a lot of tailwinds this year for iPhone, for the entire cycle.”

Supply shortages have crossed categories. On whether iPhone supply will be able to meet demand through the rest of the year, Cook said supplies “are constrained today,” not surprising for the start of a launch, but it’s hard to predict when supply will free up. Supply is also constrained for the Mac, iPad and Apple Watch: “At this point, I can't estimate when we'll be out of that.”

China is ahead of the U.S. in 5G infrastructure rollout, with 600,000 base stations forecast by year-end, Cook said, “so we’re entering the market at a very good time.” The company has been collaborating with 5G carriers around the world to ensure iPhone “has great throughput,” coverage, battery life and call quality, he said. The company has completed 5G testing on over 100 carriers in more than 30 regions.

On how Apple is preparing for the next wave of COVID-19, Cook said it's prioritizing safety first, turning stores into an “Express storefront.” The concept sets an environment for employee and customer safety while still allowing interaction, he said. Apple also put more people answering phones “because a lot more people are reaching out to us that way.” The direct-to-consumer online store has remained operational through the pandemic, he noted. “Everybody, to the best of their ability, is putting in contingency plans and finding a way to adapt,” Cook said, but “there’s a level of uncertainty.” Maestri referenced uncertainties on the company's decision not to provide fiscal Q1 guidance.

Apple posted record fiscal Q4 revenue Thursday for the period ended Sept. 26, despite delays that pushed the latest iPhones into fiscal Q1, said Maestri. Q4 revenue rose 1% year on year to $64.7 billion, with product revenue slipping to $50.1 billion from $51.5 billion a year ago, while services rose to $14.5 billion from $12.5 billion.

All product categories grew double digits in the quarter, except for iPhone, due to the phones' delayed launches into October and November. In the quarter, iPhone sales were $26.4 billion, Mac sales grew to $9 billion, iPad sales reached $6.8 billion, and wearables, $7.9 billion. Paid subscriptions grew more than 35 million sequentially, up 135 million from a year ago, said Maestri. Apple is on target to reach 600 million paid subscriptions by year-end. The stock closed 5.6% lower Friday at $108.86.