Apple previewed iOS 26, the next version of iPhone software at WWDC 2025. And no, you're not hearing that wrong. It's got a new name, a new look, and a lot more.This is All Things Mobile. Let's jump in. Last year, we got Apple Intelligence.The year before that, the company unveiled the Vision Pro. And this year, Apple renamed its software and made them look more unified. It might not sound as big a deal as previous years, but if you hoped Apple would talk more about software and less about AI, then this was ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $260 million, reflecting a 3% year-over-year increase, surpassing guidance of a decline of 5% to an increase of 5% [14][22] - Adjusted EBITDA was negative $1 million, which was $5 million better than the high end of guidance, showing a $33 million improvement from Q2 last year [17][18] - GAAP gross margin was 43.7%, while non-GAAP gross margin was 47.1%, both towards the high end of guidance [16][22] - The company ended the quarter with $224 million in net cash, including $50 million in marketable securities [20] Business Line Data and Key Metrics Changes - Home theater products, particularly the ARC Ultra soundbar, contributed significantly to revenue growth, with the company gaining dollar share in both the US and EMEA markets [7][14] - The launch of the ACE headphones in June also positively impacted revenue, although it was noted that the year-over-year comparison would be challenging due to the previous year's launch [14][54] Market Data and Key Metrics Changes - Growth markets, while currently a small share of total revenue, experienced double-digit growth in Q2 and contributed positively to overall revenue growth [15][68] - The company is focused on expanding its presence in these growth markets as a key driver for future growth [15] Company Strategy and Development Direction - The company is prioritizing improvements in core product experience, cost efficiency, and innovation, with a focus on software enhancements to drive customer satisfaction and repurchase [12][59] - A strategic shift has been made to move production out of China to Malaysia and Vietnam, significantly reducing exposure to tariffs [10][11] - The company is evaluating pricing and promotional strategies to maintain product appeal while balancing margins and volume [12][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic global environment, citing proactive measures taken in production and cost management [10][12] - The outlook for Q3 revenue is projected to be between $310 million and $340 million, reflecting a sequential increase but a year-over-year decline [22][23] - Management emphasized the importance of maintaining operational flexibility and liquidity in the face of uncertain market conditions [61] Other Important Information - The company has raised its annualized run rate savings for both GAAP and non-GAAP operating expenses, indicating a focus on cost reduction [26][27] - The board is conducting a comprehensive search for a permanent CEO, emphasizing the importance of selecting a world-class leader for the company's future [70] Q&A Session Summary Question: Channel's willingness to take on inventory with lower tariffs - Management is in discussions with channel partners regarding inventory strategies and tariff impacts, indicating ongoing work in progress [31][32] Question: Impact of winding down the IKEA partnership - The partnership with IKEA has been largely wound down, allowing the company to focus on core experiences and profitable growth [33] Question: Status of relationship with the installer channel - Management reported significant improvements in product quality and customer response, indicating a positive trend in rebuilding trust with the installer channel [35][36] Question: Demand impact from tariffs - No material change in demand has been observed since the announcement of tariffs, with ongoing monitoring of the situation [39][40] Question: Tariff impact on holiday season - Management is actively working on strategies to mitigate tariff impacts and is closely monitoring consumer demand as the holiday season approaches [41][42] Question: Clarification on tariff exemptions - The majority of US-bound production is now from Vietnam and Malaysia, with limited exposure to tariffs [48][50] Question: Year-over-year growth normalization - Management acknowledged the complexity of normalizing growth comparisons due to various factors, including the previous year's product launches and competitive pressures [52][54] Question: Focus on product launches versus repairing brand image - The company aims for a balance between product launches and improving customer relationships, with a strong product roadmap in place [58][59] Question: Use of cash and shareholder returns - While returning capital to shareholders remains a priority, the company is focused on maintaining liquidity and operational flexibility in the current environment [61][62]