Core Insights - Morgan Stanley's report indicates that Apple's upcoming Q4 FY2025 earnings report is expected to show positive results, driven by resilient service revenue and the company's shift of production for the U.S. market outside of China [1][2] Group 1: Service Revenue Performance - The service business growth rate increased to approximately 13% in Q3, with guidance for Q4 indicating a similar growth rate, suggesting limited impact from the "external link payment" option introduced in the App Store [1][2] - The "external link payment" option was implemented following a federal court ruling requiring Apple to allow users to complete in-app purchases through external channels, stemming from a legal dispute with Epic Games [1] Group 2: Production and Cost Management - Apple has taken swift action to relocate some of its production lines for products sold in the U.S. from China to countries like India and Vietnam, aiming to mitigate the impact of semiconductor-related tariffs [1] Group 3: Financial Outlook - The company is expected to achieve strong high single-digit revenue growth in Q4 FY2025, with the first quarter of FY2026 also projected to reflect a positive product cycle [2] - Market consensus anticipates earnings per share of $1.77 and revenue of $102.19 billion for the upcoming earnings report, compared to $1.64 per share and $94.93 billion in the same quarter last year [2]