Apple Inc.

Strong Q3 results (growth across products + record Services) - Revenue: $109.4B, +16% YoY and a June quarter record. - Products revenue: $78.7B, +18% YoY (driven by iPhone and Mac). - iPhone: $54.3B, +22% YoY to a June quarter record; iPhone supply was constrained but demand was still very strong (including strong upgraders and share gains per IDC). - Mac: $10.4B, +29% YoY to a June quarter record; share gains per IDC; notable strength in emerging markets (including Greater China). - Services: $30.7B, record June quarter, +12% YoY (despite sequential FX headwinds); record results in multiple categories including cloud and payments.

Profitability + margins: tariff refund helped; Services margin down sequentially - Company gross margin: 50.1%, +80 bps sequentially (benefit from tariff refunds ~2 percentage points). - Products gross margin: 40.1%, +140 bps sequentially (tariff refunds also helped >2.5% here). - Services gross margin: 75.6%, -110 bps sequentially, mainly due to mix (not tariff refunds). - Operating expenses: $19.1B, +23% YoY driven by R&D investment. - EPS: $2.02, +29% YoY (includes $0.11 benefit from tariff refunds). - Cash flow: Operating cash flow $34.4B (June quarter records even excluding tariff refund benefit).

Biggest challenge: supply constraints (advanced-node / SoC availability) tightening sequentially - Management framed the supply issue as less about a “supplier problem” and more about demand exceeding supply flexibility, especially tied to advanced nodes for Apple silicon. - In Q3, constraints were primarily on Mac with lesser impact on iPhone and iPad. - For next quarter (September), Apple expects constraints to increase significantly sequentially, impacting iPhone, Mac, and iPad.