A：Apple set September quarter revenue records in the US, Canada, Latin America, Western Europe, the Middle East, Japan, Korea, South Asia, as well as emerging markets and set an all-time revenue record in India.

A：AirPods Pro 3 includes next-level sound quality and active noise cancellation features.

A：The new software design with Liquid Glass material brings fluidity, vitality, and flexibility to Apple products, creating a unified experience across all platforms.

A：The A19 Pro chip and M5 have significantly impacted Apple products by enhancing performance, power efficiency, and AI capabilities.

A：Apple has introduced new features with Apple intelligence such as live translation for real-time language translation, visual intelligence for learning about the world, and Workout Buddy for personalized motivational insights based on workout data.

A：Revenue growth for the iPhone in the September quarter was up 6% from a year ago, Mac had a strong September quarter with revenue up 13% year over year, and iPad had revenue of $7 billion for the September quarter.

A：The newest Apple Watch lineup includes advanced health features like heart rate monitoring, fall detection, crash detection, and hypertension notifications, which are developed using large scale machine learning models.

A：Sleep score is a feature that provides a simple, intuitive way for users to understand their sleep quality and discover ways to improve it.

A：Apple TV celebrated a big night at the Emmy Awards with 22 wins, Studio led the night with 13 wins, and Severance topped all dramas with eight wins.

A：Apple TV will be the destination for F1 fans across the US, offering every twist and turn of the new season starting next year through a new partnership with Formula One.

A：Apple News provides access to front page news from all around the world, putting hundreds of publications right at users' fingertips.

A：The Apple Ginza store in Tokyo was significant as it was the company's first store outside the United States and was especially meaningful for Tim Cook to return and welcome customers to the beautiful new space.

A：Apple is committed to investing $600 billion over the next four years in the US, focusing on innovation and strategic areas like advanced manufacturing, silicon engineering, and artificial intelligence, while supporting over 450,000 jobs with thousands of suppliers across all 50 states.

A：Revenue for the September quarter was $102.5 billion, up 8% year over year, with records set in the Americas, Europe, Japan, and the rest of Asia Pacific, and growth in the majority of tracked markets.

A：Products revenue was $73.7 billion, up 5% year over year, driven by iPhone and Mac, and reached a September quarter record. Services revenue was $28.8 billion, up 15% year over year, and also set an all-time record.

A：Wearables, home, and accessories revenue was $9 billion, flat year over year, driven by growth on Apple Watch and AirPods offset by a decline in accessories, which was impacted by strong performance in the year-ago quarter. The Apple Watch and AirPods installed bases reached all-time highs, with over half of Apple Watch customers being new to the product and a September record for Apple Watch sales in the U.S. Customer satisfaction for Apple Watch was measured at 95%.

A：Services revenue reached an all-time high of $28.8 billion, up 15% year over year, with revenue records in the Americas, Europe, Japan, and the rest of Asia-Pacific, as well as in Greater China. A September quarter record was set for Apple Pay and payment services saw double-digit growth on Apple Pay with active users. The total fiscal year services revenue surpassed $100 billion, marking a 14% year-over-year growth and the best results ever.

A：Apple products are being adopted across industries to improve productivity and drive innovation. Examples include the BMW Group deploying iPhones for factory employees, Capital One expanding its Mac Choice program, and CSKA Spital adding more MacBook Airs. Purdue University has launched a spatial computing hub built around Apple's Vision Pro.

A：Apple ended the quarter with $132 billion in cash and marketable securities, and had $1.3 billion in debt maturities with commercial paper decreased by $1.9 billion. This resulted in $99 billion in total debt, and net cash was $34 billion at the end of the quarter.

A：Apple had a record fiscal year 2025 with total company revenue of $416 billion, showing growth across iPhone, Mac, iPad, and services. The company set all-time records for net income and diluted EPS, with double-digit growth year over year on an adjusted basis.

A：Apple expects total company revenue to grow by 10% to 12% year over year in the December quarter, which would be the best quarter ever. They anticipate double-digit year-over-year growth in iPhone revenue, which would be the best iPhone quarter ever. For Mac, they expect a difficult compare against recent product launches. Services revenue is expected to grow at a year-over-year rate similar to the fiscal year 2025. They also expect gross margin between 47% and 48%, and operating expenses between $18.1 billion and $18.5 billion with Oi & E around $150 million. The tax rate is expected to be around 17%.

A：Apple's world-class procurement team is continuously finding ways to drive cost opportunities and is managing cost effectively. They have seen slight increases in memory and storage prices but are confident in their ability to manage these costs. The new products do have a slightly higher cost structure than the products they replace, but the team is focused on getting these costs down over time, and they feel good about the performance in material cost savings.

A：iPhone sales in China have been very well received, with store traffic up significantly year over year. It is expected that iPhone sales will return to growth in the Q1, largely based on the reception of the iPhone in China.

A：The strong performance of services revenue is organically driven and not due to any tax-related impact or antitrust rulings. The revenue growth is across many categories and all-time revenue records were set, which is pretty much all organic growth.

A：The main factors behind the acceleration in services revenue growth are diverse and include cross-selling with the new iPhone launch, installed base growth, and the company's bundling of AppleCare with new devices. However, the exact causes of the acceleration are not pinpointed to any one factor, and the performance is attributed to the broad strength across the services portfolio.

A：The September quarter saw a record for upgraders, which is a positive sign. It's too early to make any definitive comments on upgraders or switchers in terms of sales trends. The company is constrained on several models of the iPhone due to strong demand and is working hard to fulfill all orders. There is no ramp issue, but the inventory is constrained by the high demand.

A：The gross margin outlook for the December quarter is a range of 47% to 48%, with a midpoint at 47.5, which is roughly 25 to 30 basis points higher than the previous outlook. The sequential increase is expected to be driven by favorable product mix and higher leverage, offsetting the higher cost structure of new products compared to the products they replace.

A：The weaker performance in China during the September quarter was primarily due to supply constraints on several iPhone models. With the expected significant year-over-year growth and the reception of the iPhone 17 family, it is anticipated that growth will return to the Chinese market in the current quarter.

A：The company is currently constrained on several iPhone 17 models and is working hard to balance supply and demand. However, a prediction on when supply will meet demand is not provided. Without revealing specific predictions, it's mentioned that they are working towards releasing more products to customers.

A：The concern is about the potential impact on the sustainability of strong mid-teens growth rates for services over an extended period, especially given the deceleration of search volumes and the rise of AI.

A：Apple set records during the quarter through a combination of its own internal advertising and licensing individual records, although the company does not split these figures at that level.

A：Smartphone subsidies are playing a favorable role in driving consumer demand in China. These subsidies apply across multiple categories and affect certain price ranges, impacting the sales of products that are not eligible for a subsidy due to their price point.

A：The increase in operating expenses is driven by an increase in research and development (RD) investments as Apple is ramping up investments in AI while continuing to invest in the product roadmap.

A：Tariffs impact iPhone revenue and production by creating headwinds, but the effects are not linear with volume. The December quarter's forecast includes the impact of reduced tariffs from 20% to 10% in China, which is factored into the revenue projection.

A：The attach rate for other Apple products to the iPhone could potentially see some upside during the holiday season, given the strength of the iPhone portfolio. However, there are challenges like last year's record Mac launches that provide a difficult comparison for this quarter.

A：iPhone constraints have resulted in the company not being able to sell more units due to a shortage of production capacity. Specifically, they had fewer iPhone 16 S units available than the demand indicated, and there are strong demands for iPhone 17 family units, leading to back orders.

A：There are opportunities for artificial intelligence to influence the App Store, with developers beginning to adopt on-device models. This could potentially change consumer behavior and lead to benefits for both developers and Apple by adding features to apps.

A：The impact of the Pro and Pro Max versions on the market is considered very strong, but it's too early to call the mix and make public disclosure due to competitive reasons. The exact mix is not yet known as there are constraints on both sides of the ledger.

A：Apple is using private cloud compute for various queries and has a robust ramp plan in progress in a new manufacturing plant in Houston for server production for their data centers.

A：The speaker suggests that the reception of the iPhone Air is not a proxy for the foldable cone market, as the two form factors are considered very different.

A：Apple is creating foundation models within the company, using them on devices and in the private cloud. They are also surveilling the market for M&A opportunities that could advance their roadmap and are open to pursuing them if they align with their goals.

A：While many factors influence purchasing decisions, Apple Intelligence is considered a factor and is expected to become more significant. The company is very bullish on its potential impact.

A：Apple expects increases in CapEx spending related to AI investments and does not anticipate moving away from its hybrid approach, which includes leveraging both first-party and third-party capacity. They plan to continue building out private cloud compute as usage grows and foresee a continued reliance on the hybrid model.