Luca Maestri
Chief Financial Officer and Senior Vice President at Apple
Thank you, Tim and good afternoon, everyone. Revenue for the March quarter was $94.8 billion, down 3% from last year embedded in our expectations. Foreign-exchange had a negative impact of over five percentage points on our results, in-line with what we had expected. On a constant-currency basis, our revenue grew year-over-year in total and in the majority of the markets we track. In addition to that, records in emerging markets that, Tim mentioned, we also set March quarter records in Australia, Canada, Spain and Switzerland, among others.
Products revenue was $73.9 billion, down 5% from last year, due to challenging compares on Mac and iPad. IPhone, however, the recent March quarter revenue record, thanks to very strong performance in emerging markets from South Asia and India to Latin-America and the Middle-East. During the quarter, our installed-base of active devices continue to grow at a nice pace, thanks to extremely high levels of customer satisfaction and loyalty and reached an all-time high for all major product categories and geographic segments. Our Services set an all time revenue record of $20.9 billion, up 5% year-over-year, on-top of growing 17% in the March quarter a year ago. We reached an all-time Services revenue record in Greater China and March quarter records in Americas, Europe and Rest of Asia-Pacific.
Company gross margin was 44.3%, up 130 basis-points from last quarter, driven by cost-savings and favorable mix-shift towards services. Partially offset by leverage. Products gross margin was 36.7%, decreasing 30 basis-points sequentially, due to seasonal loss of leverage and mix, partially offset by favorable costs. Services gross margin was 71%, up 20 basis-points sequentially. Operating expenses of $13.7 billion, were at the low-end of the guidance range we provided at the beginning of the quarter and continued to decelerate from the December quarter.
We are closely managing our spend by remain focused on long-term growth with continued investment in innovation and product development. Net income was $24.2 billion, diluted earnings per share were $1.52, unchanged versus last year and we generated very strong operating cash-flow of $28.6 billion.
Let me now provide more details for each of our revenue categories. IPhone revenue set a March quarter record of $51.3 billion, up 2% year-over-year, despite significant foreign-exchange headwinds and a challenging macroeconomic environment. We set March quarter records in several developed and emerging markets with India, Indonesia, Turkey and the UAE doubling on a year-over-year basis.
Our active installed-base of iPhone grew to a new all-time high, and was up in all our geographic segments. We are very pleased by the results of the latest survey of U.S. consumers from 451 Research, which measured customer satisfaction at 99% for the iPhone 14 framework. Mac revenue was $7.2 billion, down 31% year-over-year and in-line with our expectations. These results were driven by the challenging macroeconomic environment, coupled with a difficult compare against last year's launch of the completely re-imagined M1 MacBook Pros. Despite this, the installed-base of active Mac's reached an all-time high across all geographic segments, and we continue to see strong upgraded activity to Apple Silicon. Also the latest survey of U.S., consumers from 451 Research, reported customer satisfaction of 96% for Mac.
IPad generated $6.7 billion in revenue, down 13% year-over-year and in-line with our expectations. This performance was due to two key factors, a tough compare against the launch of iPad Air powered by the M1 chip-in the year-ago quarter and headwinds from the macroeconomic environment. The iPad installed-base reached a new all-time high in all geographic segments. Thanks to exceptional customer loyalty and a high number of new customers, in fact, over half of the customers who purchased iPass during the quarter were new to the product.
Wearables, Home and Accessories revenue was $8.8 billion, down 1% year-over-year as the category experienced the impact from the macroeconomic environment. However, we did set March quarter records both in the U.S. and in Greater China. We continue to see strength in our watch installed base, which set a new all-time record. Thanks to very-high customer loyalty and new tool rates. Nearly 2/3 of customers purchasing an Apple Watch during the quarter were new to the product.
Moving to Services, we reached a new all-time revenue record of $20.9 billion and in addition to the all-time records, Tim mentioned earlier. We said, March quarter records for advertising Apple Care and video. Despite these records as we saw in recent quarters, certain services offerings such as digital advertising and mobile gaming, continued to be affected by the current macroeconomic environment.
Stepping back. However, the continued growth in Service is the reflection of our ecosystem strength and the positive momentum we're seeing across several key metrics.
First, our growing installed-base of over 2 billion active devices represents a great foundation for future expansion of our ecosystem. We continue to grow across every major product category and geographic segment. Thanks to very-high levels of customer loyalty and satisfaction. Second, we saw increased customer engagement with our Services during the quarter. Both our transacting accounts and paid accounts grew double-digits year-over-year, each setting a new all-time record. Third paid subscriptions, showed strong growth. We now have more than 975 million paid subscriptions across the services on our platform, up 150 million during the last 12 months and nearly double the number of paid subscriptions, we had only three years ago. And finally, we continue to improve the breadth and the quality of our current Services offerings from new content on Apple TV Plus to great new features available in Apple Pay and Apple Music, which we believe our customers will love.
Turning to the enterprise market, we see business customers continuing to invest in the Apple platform to drive higher employee productivity and satisfaction. In Brazil, boutique carrier group, the world's largest cosmetics franchiser, originally starting with iPhone 12 employees manage operations across our network of retail stores, franchisees and resellers. As it continues to digitize its business, but the carrier chosen to move all software development in-house and adopted Mac as the standard device for all of their developer teams across the world.
In small-business, we see an increasing number of customers relying on Apple hardware, software and Services to power their businesses forward. From accepting payments on iPhone to tracking inventory on Mac or iPad to managing employee devices with Apple Business Essentials. As we celebrate National Small Business week here in the U.S., we are proud to continue supporting the small-business community.
Let me now turn to our cash position and capital return program. We ended the quarter with over $166 billion in cash and marketable securities. We repaid $2.3 billion in maturing debt and increased commercial paper by about $300 million, leaving us with total debt of $110 billion. As a result, net cash was $57 billion at the end-of-the quarter. During the March quarter, we returned over $23 billion to shareholders, including $3.7 billion in dividends and equivalents and $19.1 billion through open-market repurchases of 129 million Apple shares.
Given the continued confidence we have in our business now and into the future, today, our Board has authorized an additional $90 billion for share repurchases, as we maintain our goal of getting to net cash-neutral over-time. We're also raising our dividend by 4%, to $0.24 a share and we continue to plan for annual increases in the dividend going-forward.
As we move ahead into the June quarter. I'd like to review our outlook, which includes the types of forward-looking information that's Suhasini referred to at the beginning of the call. We expect our June quarter year-over-year revenue performance to be similar to the March quarter, assuming that the macroeconomic outlook does not worsen from what we are projecting today for the current quarter.
Foreign-exchange will continue to be a headwind and we expect a negative year-over-year impact of nearly 4 percentage points. For Services, we expect our June quarter year-over-year revenue growth to be similar to the March quarter, while continuing to face macroeconomic headwinds in areas such as digital advertising and mobile gaming.
We expect gross margin to be between 44% and 44.5%. We expect OpEx to be between $13.6 billion and $13.8 billion. We expect OI&E to be around negative $250 million, excluding any potential impact from the mark-to-market of minority investments and our tax-rate to be around 16%. Finally, reflecting the dividend increase I mentioned earlier, today, our Board of Directors has declared a cash dividend of $0.24 per share of common stock payable on May 18, 2023 to shareholders of record as of May 15, 2023.
With that, let's open the call to questions.
