Apple Inc. announced its performance for the third quarter of the 2025 fiscal year, reporting revenue of $94 billion and earnings per share reaching a new high for the June quarter at $1.507, a 12% year-on-year increase. The company saw accelerated growth in most markets worldwide, especially in Greater China and many emerging markets. Additionally, iPhone, Mac, and service businesses all achieved double-digit growth, with iPhone experiencing growth in all geographical regions, especially in emerging markets like India, the Middle East, South Asia, and Brazil. The company also showcased new designs, including the use of Liquid Glass material, and new advancements in artificial intelligence, featuring new features and support for multiple languages, at WWDC.

Apple Inc. achieved significant performance growth in the latest quarter, with iPhone revenue reaching $44.6 billion, a 13% year-on-year increase, setting a record for June quarterly upgrade users. The iPhone 16 series performed particularly well, with sales achieving strong double-digit year-on-year growth. In addition, the Mac business also showed strong performance, with revenue reaching $8 billion, a 15% year-on-year increase, mainly due to the strong performance of the M4 MacBook Air. iPad revenue was $6.6 billion, while revenue from wearables, home, and accessories business reached $7.4 billion, with Apple Watch upgrade users setting a record for the June quarter. Service revenue also reached a new high, at $27.4 billion, a 13% year-on-year increase. In terms of product innovation, Apple introduced multiple new features and updates, including real-time call screening for the iPhone, updates for MacOS, major upgrades for iPad OS, and smart work application updates for Apple Watch. At the same time, Apple continued to focus on health and safety features, with its health and safety features having a profound impact on user's lives. In the services sector, Apple TV+ received 81 Emmy Award nominations, Apple Music celebrated its tenth anniversary, and announced multiple new features. Additionally, Apple made progress in expanding into emerging markets, including opening new stores in Saudi Arabia, the UAE, and India. Apple Inc. also emphasized its commitment to social responsibility and sustainable development, including commitments to material recycling and support for US manufacturing.

Apple Inc. announced its second quarter financial report, with revenue reaching $94 billion, a year-on-year increase of 10%, setting a new June quarter record. Product revenue reached $66.6 billion, a year-on-year increase of 8%, mainly driven by the growth in sales of iPhone and Mac. Services revenue reached $27.4 billion, a year-on-year increase of 13%, hitting a historical high. iPhone revenue was $44.6 billion, a year-on-year increase of 13%, Mac revenue was $8 billion, a year-on-year increase of 15%, while iPad revenue was $6.6 billion, a year-on-year decrease of 8%. Apple Watch and accessories revenue were $7.4 billion, a year-on-year decrease of 9%. Customer satisfaction and loyalty for all product categories remain high, and the installed base of active devices has reached a historical high.

Apple Inc. performed well in the June quarter, with significant revenue growth in multiple business categories, including cloud services, especially achieving a record high annual growth rate for paid iCloud accounts. Customer engagement in service business continued to grow, with transactions and paid accounts reaching historical highs, and paid account growth reaching double digits. The company has over one billion paid subscription users. Additionally, Apple made progress in the enterprise sector, with companies like PayPal and Roche increasing their investment in Apple products to drive employee innovation and productivity. Mac and enterprise business in Thailand performed the best in the June quarter.

Siam Commercial Bank has deployed thousands of iPads in each branch to enhance efficiency and quality in banking services, including loan services and wealth management. Meanwhile, CAE uses Apple Vision Pro technology to help pilots become more familiar with flight procedures, thus improving the effectiveness of actual flight simulation training.

In the most recent quarter, Apple held $133 billion in cash and marketable securities, with a total debt of $102 billion, resulting in a net cash position of $310 billion. The company returned over $27 billion to shareholders in the quarter, including $3.9 billion in dividends and equivalents and $21 billion in stock buybacks. For the next quarter, Apple expects total revenue to grow in the mid to high single digits year-over-year, with service revenue growth rate similar to the previous quarter. Gross margin is forecasted to be between 46% and 47%, operating expenses between $15.6 billion and $15.8 billion, and operating profit is expected to be -$25 million. Additionally, the board of directors announced a cash dividend of $0.26 per share, payable to eligible shareholders on August 14, 2025.

In the conversation, the analyst asked Apple about whether the upgrade rates for the iPhone, Mac, and Apple Watch have increased due to factors such as product features, tariff incentives, or Apple's ecosystem, and whether these upgrade records stem from a stronger upgrade demand or a continually growing installed base. Additionally, the analyst also inquired about capital expenditure (CapEx) related issues.

The company's capital expenditures have increased significantly this year, driven mainly by increased investment in the field of AI, the construction of private cloud computing and data centers, and the adoption of a mixed strategy involving both third-party and self-built facilities. In addition, product upgrades, such as the strong performance of the iPhone 16 series, have also promoted upgrade records, indicating a trend towards migration to Apple Ion and the key role of Apple Silicon performance. In discussions about the impact of tariffs, market demand in April has increased prematurely, with an estimated 10% of purchasing behavior being a response to discussions regarding tariffs.

After the quarterly financial report released by Apple, reports indicated that the search volume of Safari browser saw a decrease for the first time in April. However, the company's service business grew by 13% this quarter, indicating that the downward trend in April did not continue to impact the overall performance of the quarter. As for whether the rise of AI platforms has affected the strategic value of Apple products as a search entry point, the company stated that consumer behavior is indeed evolving, but Apple products still have a high value, and the company is closely monitoring this change.

In the most recent quarter, Apple's business in the Greater China region grew by 4%, driven mainly by accelerated iPhone sales and significant growth in Mac sales. This growth is partly attributed to government subsidy policies affecting some products. Apple's installed base in China reached a historic high, and the iPhone installed base also reached an all-time high. In mainland China, most customers purchasing Macs, iPads, and Apple Watches are new users. Additionally, iPhones rank in the top three sales models in urban China, while the MacBook Air and Mac mini have become the best-selling laptop and desktop models in China, showing a very positive market performance overall.

During the discussion, Apple expressed confidence in the progress of AI technology, especially in the development of personalized features for Siri, and plans to release new related features in the next year. The company is significantly increasing its investment in the field of AI, optimizing team structure, and working to deeply integrate AI features into its platform to provide a more personalized user experience. At the same time, the company expressed excitement for future product roadmap but did not disclose specific details.

The conversation discussed the company's revenue growth expectations from the third quarter to the fourth quarter, explaining the reasons for lowering the growth expectations from 13% to the mid to high single digits. The main reasons include market demand impact related to tariffs and the high base effect brought by the full launch of iPads in the third quarter of last year. At the same time, it was pointed out that foreign exchange rates have a relatively small impact on this change.

The discussion focused on the growth of Apple's services sector, particularly the role of Google Pay in its ecosystem, and the potential strategies Apple may adopt if Google Pay is restricted. In addition, the trend of reduced dependence on screen devices in the future with the development of AI was also explored, along with how Apple views and prepares to address this change, emphasizing the comprehensive functionality of the iPhone and the possibility of future devices coexisting rather than replacing them.

The discussion focused on the impact of the 1.1 billion tariff assumption on the company's September quarter, as well as how to offset this adverse effect by increasing investment and production in the United States, such as building ships in Arizona and producing semiconductors in 24 factories across 12 states, while maintaining or further developing tariffs. The investment in MP materials was also mentioned, indicating that the company is actively exploring more countermeasures.

The service department of Apple Inc. achieved a significant growth of 13% in the most recent quarter, reaching a record of $27.4 billion, with strong performance in both developed and emerging markets. Regarding the impact of the Epic Games lawsuit, Apple stated that it has implemented changes required by the court since June, although it did not provide specific details on the impact, it confirmed that the US App Store achieved double-digit growth and set a new historical high. Apple will continue to monitor the impact of the lawsuit on its business, while striving for innovation to ensure the best user experience on the App Store and provide good business opportunities for developers.

The discussion focused on the company's supply chain strategy, especially regarding production layout in India, China, and Southeast Asia, and how to address unexpected challenges in the Indian market. In addition, the sales performance of the iPhone in the June quarter was analyzed, looking at factors other than promotions driving sales, as well as the impact of tariffs and the country of origin on the business.

Apple emphasized that most of its products are covered by Section 2 and Section 32 investigations, with the recent tariffs mainly coming from China. The majority of iPhones sold in the United States are sourced from India, while Mac, iPad, and Watch are primarily manufactured in China. The company expects to continue increasing investments in the United States in the future, including projects on new materials and manufacturing institutes, and emphasizes the production of chips and iPhone components in the United States. In addition, the company mentioned the strong sales performance of the iPhone 16 series and the positive impact of the newly launched 16E on overall performance.

In recent discussions, Apple analyzed in detail the channel inventory situation of the iPhone in the June quarter, pointing out that inventory in that quarter had decreased and was at the low end of its target range. At the same time, the company also mentioned that market discussions had a slight impact on iPhone sales, believing that these discussions had approximately a 1 percentage point effect on the company's overall growth.

The conversation explored how artificial intelligence (AI) as one of the most profound technologies of this century, will significantly impact all devices, especially the future evolution of edge devices such as smartphones. Although the specific strategies and the level of commoditization of AI chains were not discussed in detail, it emphasized the core role of AI in device innovation.

During the discussion, it was mentioned that Apple noticed abnormal sales patterns for iPhone and Mac, primarily in April and mostly in the US market. Additionally, tariffs were discussed, including the estimated tariffs from the previous quarter and their impact on the current quarter, as well as the uncertainty surrounding potential tariff changes in future quarters.

In this discussion, the company's financial personnel explained in detail the impact of exchange rates on the company's quarterly performance, pointing out that the exchange rate fluctuations in this quarter have almost no impact on the company's revenue and gross profit margin, and it is also expected to have minimal impact in the next quarter. At the same time, it was mentioned in the discussion that the company's capital expenditure (CapEx) has seen a significant increase, mainly attributed to heavy investments in the field of artificial intelligence (AI). Although capital expenditures will not show exponential growth, substantial improvement is expected. In addition, the company also mentioned other expenses related to investments in facilities and retail stores, as well as the adoption of a mixed model, utilizing both third-party infrastructure and self-built infrastructure.

At WWDC, Apple showcased updates to Vision Pro, including new methods for spatial widgets, themes, and content creation, demonstrating a strong momentum towards advancing in the field of AI glasses. Although currently focusing mainly on enterprise applications, Apple has expressed openness to expanding the use cases of Vision Pro and integrating it with more devices. The release of Vision OS 26 marks significant progress in customized digital spaces, more realistic personalized representations, and enterprise APIs, which have received positive feedback from customer groups such as CE. While unwilling to disclose specific roadmaps, Apple has clearly stated their high level of attention and confidence in this field.

The company expressed an open attitude towards accelerating the roadmap of AI development. This year, it has acquired about 7 companies covering different fields, not limited to the direction of AI. The company is open to mergers and acquisitions and is not limited by the size of the company, as long as the company can accelerate its development roadmap, it is of interest to them. In addition, the conference also provided playback information for this discussion, including various channels for playback.