Core Point - CNN has ended its content-sharing agreement with Apple News, removing its stories from the platform [1] Group 1 - The decision to remove stories from Apple News indicates a shift in CNN's content distribution strategy [1] - This move may impact CNN's audience reach and engagement on the Apple News platform [1] - The termination of the agreement reflects broader trends in media partnerships and content sharing [1]

Core Insights - Apple's advertising segment achieved a record during the quarter, indicating significant growth in this area [2][3] - The Services unit, which includes the advertising business, reached an all-time revenue record of $28.8 billion, reflecting a 14% year-over-year increase [3] - Apple's advertising strategy is built on privacy and control, differentiating it from competitors who are focusing on AI-driven personalization [4][5] Advertising Performance - Tim Cook confirmed that the combination of third-party and first-party advertising set a record, although he did not disclose individual performance metrics [2] - The advertising business is part of Apple's broader Services unit, which has shown organic growth and resilience [3][6] Strategic Positioning - Apple's approach to advertising maintains its privacy-first philosophy, countering assumptions that privacy measures would hinder ad revenue [5] - The company's advertising success is seen as a strategic move, focusing on building a sustainable ecosystem rather than competing directly with traditional ad platforms [4][6]

Financial Data and Key Metrics Changes - The company reported revenue of $102.5 billion, an 8% increase year-over-year, marking a September quarter record [4][20] - Earnings per share (EPS) reached $1.85, a 13% increase year-over-year on an adjusted basis [21] - Gross margin was 47.2%, up 70 basis points sequentially, exceeding guidance [21] - Net income was $27.5 billion, setting a September quarter record [21] Business Line Data and Key Metrics Changes - iPhone revenue was $49 billion, up 6% year-over-year, driven by the iPhone 16 family [10][22] - Mac revenue increased to $8.7 billion, a 13% year-over-year growth, primarily due to the MacBook Air [11][22] - iPad revenue remained flat at $7 billion year-over-year, facing tough comparisons from previous launches [12][23] - Wearables, home, and accessories revenue was $9 billion, flat year-over-year, with strong performance from Apple Watch and AirPods [12][24] - Services revenue reached an all-time high of $28.8 billion, up 15% year-over-year, with double-digit growth across most categories [14][25] Market Data and Key Metrics Changes - The company achieved revenue records in numerous markets, including the U.S., Canada, Latin America, Western Europe, and emerging markets [4][5] - India saw an all-time revenue record, reflecting strong demand in emerging markets [4][22] - Customer satisfaction for iPhone in the U.S. was reported at 98%, while Mac satisfaction was at 96% [22][23] Company Strategy and Development Direction - The company is focusing on innovation and expanding its product lineup, particularly in AI and health features [6][9][17] - A commitment to invest $600 billion over the next four years in the U.S. is aimed at advanced manufacturing and AI [17][18] - The company is enhancing its services portfolio, with a focus on organic growth and expanding its active device install base [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the December quarter, expecting revenue growth of 10% to 12% year-over-year [29] - The company anticipates strong demand for the iPhone 17 family, despite supply constraints [10][22] - Management noted that the advertising category set a record during the quarter, indicating strong performance in services [65] Other Important Information - The company opened new stores in emerging markets and redesigned existing locations, enhancing customer engagement [16] - The company is committed to sustainability, using more recycled materials in its products [17] Q&A Session Summary Question: What is driving the success of the iPhone 17? - Management attributed the success to a strong product lineup and innovative features, making it the strongest iPhone lineup ever [33] Question: How is the company managing component cost inflation? - The procurement team is actively finding cost-saving opportunities, and there is a slight tailwind on memory and storage prices [34][36] Question: What is the outlook for iPhone sales in China? - Management reported strong store traffic and positive reception for the iPhone 17 family, expecting growth in Q1 [42] Question: What drove the strong services revenue growth? - The strong performance was attributed to organic growth across various categories, with no significant tax-related impacts [46] Question: How is the company addressing supply constraints for iPhones? - Management clarified that constraints were due to underestimating demand rather than manufacturing capacity [85] Question: What role do subsidies play in consumer demand in China? - Subsidies positively influence demand, but they only apply to certain price ranges of products [70] Question: How does the company view the impact of AI on consumer behavior? - Management sees opportunities for AI to enhance the App Store and improve app features, benefiting both developers and Apple [86]

Financial Data and Key Metrics Changes - The company reported revenue of $102.5 billion, an 8% increase year-over-year, marking a September quarter record [4][20] - Earnings per share (EPS) reached $1.85, a 13% increase year-over-year on an adjusted basis [21] - Net income was $27.5 billion, setting a September quarter record [21] - Gross margin was 47.2%, up 70 basis points sequentially, driven by a favorable mix [21] Business Line Data and Key Metrics Changes - iPhone revenue was $49 billion, up 6% year-over-year, with strong demand despite supply constraints [10][22] - Mac revenue increased to $8.7 billion, a 13% year-over-year growth, driven by the MacBook Air [11][22] - iPad revenue remained flat at $7 billion year-over-year, facing tough comparisons from previous launches [12][23] - Wearables, home, and accessories revenue was $9 billion, flat year-over-year, with growth in Apple Watch and AirPods [12][24] - Services revenue reached an all-time high of $28.8 billion, a 15% increase year-over-year [14][25] Market Data and Key Metrics Changes - The company achieved revenue records in the Americas, Europe, Japan, and the rest of Asia-Pacific [20] - Emerging markets, including India, saw significant revenue growth, with India achieving an all-time revenue record [4][5] - Customer satisfaction for iPhone in the U.S. was reported at 98%, while Mac satisfaction was at 96% [22][23] Company Strategy and Development Direction - The company is focusing on innovation and expanding its investment in AI, committing $600 billion over the next four years [17][18] - New product launches, including the iPhone 17 and M5 chip, are expected to drive future growth [6][8] - The company aims to enhance user experiences through new features and a unified software design across platforms [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming December quarter, expecting it to be the best ever for the company and iPhone [5][29] - The company anticipates revenue growth of 10%-12% year-over-year for the December quarter [29] - Management acknowledged supply constraints but indicated strong demand for iPhone models [10][86] Other Important Information - The company returned $24 billion to shareholders during the quarter, including $3.9 billion in dividends [28] - The company ended the quarter with $132 billion in cash and marketable securities [28] Q&A Session Summary Question: What is driving the success of the iPhone 17? - Management attributed the success to a strong product lineup and features that resonate with consumers [32][33] Question: How is the company managing component cost inflation? - The procurement team is actively finding cost opportunities, and there is a slight tailwind on memory and storage prices [34][36] Question: What is the outlook for iPhone in China? - Management reported significant store traffic and positive reception for the iPhone 17 family, expecting growth in Q1 [41][42] Question: What drove the strong services revenue growth? - The strong performance was attributed to organic growth across various categories, with no tax-related impacts [43][46] Question: What are the expectations for gross margins in the December quarter? - Management expects gross margins to be between 47% and 48%, driven by favorable product mix [57][58] Question: How is the company addressing supply constraints for iPhones? - Management clarified that constraints were due to underestimating demand rather than manufacturing capacity [86] Question: What role do subsidies play in consumer demand in China? - Subsidies have a favorable effect on demand, particularly for certain price ranges [70] Question: How is the company leveraging AI in its products? - Management highlighted opportunities for AI in the App Store and ongoing development of Apple foundation models [87][100]

Financial Data and Key Metrics Changes - Company reported revenue of $102.5 billion, an increase of 8% year over year, setting a September quarter record [3][18] - Earnings per share (EPS) reached $1.85, marking a record for the September quarter [3][19] - Gross margin was 47.2%, up 70 basis points sequentially, exceeding guidance [19][29] - Net income was $27.5 billion, with operating cash flow also reaching a September quarter record of $29.7 billion [19][26] Business Line Data and Key Metrics Changes - iPhone revenue was $49 billion, up 6% year over year, driven by strong demand despite supply constraints [9][20] - Mac revenue increased to $8.7 billion, up 13% year over year, primarily due to the popularity of the MacBook Air [10][21] - iPad revenue remained flat at $7 billion year over year, facing tough comparisons from previous launches [11][22] - Wearables, home, and accessories revenue was $9 billion, flat year over year, with strong performance from Apple Watch and AirPods [12][23] - Services revenue reached an all-time high of $28.8 billion, up 15% year over year, with double-digit growth across most categories [13][24] Market Data and Key Metrics Changes - Company achieved revenue records in multiple markets, including the U.S., Canada, Latin America, Western Europe, and emerging markets like India [3][4] - Strong growth was noted in both developed and emerging markets, with significant records set in India [3][4][18] Company Strategy and Development Direction - Company is focusing on innovation and expanding its product lineup, particularly in AI and health features [4][8][16] - Plans to invest $600 billion over the next four years in the U.S., emphasizing advanced manufacturing and AI [16][17] - The company aims to enhance customer engagement and satisfaction through new features and services [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the December quarter, expecting it to be the best ever for the company and iPhone [4][27] - The company anticipates revenue growth of 10% to 12% year over year for the December quarter [27][29] - Management highlighted strong customer satisfaction levels, with 98% for iPhone and 96% for Mac in the U.S. [21][22] Other Important Information - The company is increasing investments in AI and product development, with a focus on enhancing user experiences [16][44] - The launch of new products, including the M5 chip, is expected to drive future growth [5][7] Q&A Session Summary Question: What is driving the success of the iPhone 17? - Management attributes the success to a strong product lineup and features that resonate with consumers [30][31] Question: How is the company managing component cost inflation? - The procurement team is actively finding cost-saving opportunities, and recent trends in memory prices are favorable [31][32] Question: What is the outlook for iPhone sales in China? - Management noted strong reception for the iPhone 17 family and expects to return to growth in Q1 [33][40] Question: What are the drivers behind the acceleration in services revenue? - The growth is attributed to organic performance across various categories, with no significant external factors impacting it [34][35] Question: How does the company view the impact of AI on consumer behavior? - Management believes AI capabilities are becoming a factor in purchasing decisions, though it's still early to quantify its impact [55]

Core Viewpoint - Apple plans to introduce advertisements in its Maps application as early as next year, which may lead to user dissatisfaction [1][4] Group 1: Advertising Strategy - Apple is accelerating its plan to bring more advertising to iOS, specifically in the Apple Maps app [4] - The advertising model will allow restaurants and other businesses to pay for more prominent placement in search results, similar to the "search ads" in the App Store [4] - The new ad version in Apple Maps is expected to have a more user-friendly interface compared to competitors like Google, utilizing AI technology to enhance relevance and practicality of results [4] Group 2: User Sentiment and Concerns - Some users have expressed dissatisfaction with the increasing promotional content on iPhones, including ads for services like AppleCare+, Apple Music, Apple TV, and Fitness+ [4] - Consumers have criticized the addition of ads on high-priced devices, such as a phone costing $2000 (approximately 14,255 RMB), viewing it as excessively profit-driven and inappropriate [4]

Core Viewpoint - Apple is planning to introduce advertisements in Apple Maps as early as next year, marking a significant expansion of its advertising strategy beyond the App Store and Apple News [2][3]. Group 1: Advertising Strategy - Apple is considering integrating ads into the map search feature starting with iOS 26, which is expected to launch in 2026 [2]. - The advertising model for Apple Maps will resemble the search bidding system used in the App Store, allowing businesses to pay for higher visibility in search results [2]. - Initial reports suggest that ads may not be prominently displayed on the homepage of the Maps application, unlike the App Store [2]. Group 2: Technology and User Experience - Apple plans to utilize artificial intelligence to enhance the relevance and utility of search results, aiming to avoid intrusive ad placements [2]. - The company asserts that the user experience of its Maps interface will surpass that of competitors like Google Maps [2]. Group 3: Revenue Potential - Internal discussions at Apple indicate that the advertising initiative could be launched alongside iOS 26.4 or 26.5 in the spring [3]. - Morgan Stanley previously estimated that if Apple increased its advertising efforts on platforms like Apple TV+ and the App Store, its ad revenue could grow from approximately $2 billion to $11 billion by fiscal year 2025, at an annual growth rate of 33% [3]. Group 4: Historical Context - Apple has a history of attempting to enter the advertising space, having launched the iAd mobile advertising platform in 2010, which aimed to create a user-friendly advertising environment [3]. - In August 2022, it was reported that Apple was internally testing search ads within Maps, indicating a strategic shift towards enhancing its advertising capabilities [3]. Group 5: Competitive Landscape - In comparison, Google's advertising revenue reached $71.3 billion in Q2 2025, driven primarily by search ads and YouTube ads, highlighting the competitive nature of the advertising market [3].

Core Insights - Formula 1 has entered a five-year broadcasting agreement with Apple, making Apple the U.S. broadcast partner starting next season [3][6] - The deal follows ESPN's decision not to renew its contract after a successful partnership since 2018, during which F1's popularity surged in the U.S. [4][14] - Apple's involvement includes the promotion of F1 through various platforms, enhancing the sport's visibility and accessibility to a broader audience [9][11] Broadcasting and Content Strategy - Apple will air all F1 practice, qualifying, sprint sessions, and races on Apple TV, with select races and practice sessions available for free [10] - The partnership aims to leverage Apple's extensive reach, with Apple TV available in over 100 countries and regions on more than 1 billion devices [10] - Eddy Cue from Apple emphasized the goal of delivering engaging content and stories to enhance the viewer experience [6][7] Growth Potential and Market Impact - The collaboration is expected to attract new fans to F1 in the U.S., capitalizing on Apple's large viewer base [11][14] - Dan Towriss, CEO of TWG Motorsports, highlighted Apple's marketing and innovation as key factors in reaching American audiences [13] - F1 President Stefano Domenicali expressed optimism about maximizing growth potential in the U.S. through innovative distribution channels and engaging content [14]