apple product presentation 2023

Apple WWDC 10 biggest announcements: Vision Pro, MacBook Air, iOS 17, and more

We finally got our first look at apple’s virtual reality headset..

By Emma Roth , a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.

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This year’s Worldwide Developers Conference didn’t disappoint. During today’s keynote, Apple showed off its highly anticipated mixed reality headset for the first time, confirming many of the rumors that have emerged over the past several months.

While Apple’s Vision Pro headset took the spotlight this time around, the company made some other exciting hardware and software-related announcements as well. Here’s all the big news from the event.

Apple announces its Vision Pro mixed reality headset

Apple has finally revealed its Vision Pro headset . The device, which lets you partake in both virtual reality (VR) and augmented reality (AR) experiences, is designed to combine the real and digital worlds both for the wearer and those around them. The primary interface displays apps on top of the real world for the wearer; meanwhile, people nearby can see the wearer’s eyes through the device using an external display feature that Apple calls EyeSight.

The device is powered by two chips: the M2 and a new R1 chip for real-time sensor processing. According to Apple, the Vision Pro features a single strip of glass on the front of the device, along with a digital crown that lets you switch in and out of AR and VR. It also comes with support for spatial audio through built-in speakers and an external battery pack that’s capable of lasting two hours with a single charge.

The Vision Pro is priced at an eye-watering $3,499, and it won’t be available until early next year.

visionOS is Apple’s new VR operating system

Apple’s Vision Pro headset will run on a completely new operating system called visionOS . This allows the device to layer virtual apps and icons atop the real world, allowing you to use eye tracking, your hand, and voice to navigate through the system.

As shown off during WWDC, you’ll be able to use Apple’s Vision Pro headset to interact with the company’s native apps, such as Safari, FaceTime, Photos, Music, and more. You can even use the device as an external display for your Mac, play Apple Arcade games , watch movies, as well as capture videos.

A bigger 15-inch MacBook Air

In addition to the Vision Pro headset, Apple also revealed a new MacBook Air with a 15.3-inch display . That’s a pretty big upgrade to its MacBook Air lineup, which has only featured 13-inch displays up until now.

Apple is marketing the device as the “world’s thinnest” 15-inch laptop and says it weighs just a little over three pounds. The device comes with up to 18 hours of battery life, 500 nits of brightness, and a 1080p webcam. It costs $1,299, and you can order it today, with availability starting next week.

The Mac Studio and Mac Pro get an upgrade with a more powerful M2 Ultra chip

Both the Mac Studio and Mac Pro are getting Apple Silicon-powered upgrades. During WWDC, Apple announced that its latest versions of the two desktop devices will have the new M2 Ultra chip, a component that has an up to 24-core CPU and up to 76-core GPU.

The Mac Studio, which Apple calls a “performance powerhouse,” will come with options for either an M2 Max or M2 Ultra chip. The Mac Pro, on the other hand, features only the M2 Ultra chip, as well as the option for PCIe expansion. While the Mac Studio starts at $1,999, the Mac Pro starts at $6,999.

A mental health-focused journaling app

Apple has a new app for iOS, and it’s called Journal . As its name implies, Journal will encourage you to log your thoughts about recent activities or trips. Apple says the app is secured with end-to-end encryption and that your logs are stored locally on your device. The app will arrive later this year.

iOS 17 adds a new StandBy display mode and several other features

Along with a new journaling app, Apple revealed a number of new features for iOS 17 . Most notably, that includes a new StandBy feature that turns your iPhone’s screen into a smart home-like display when it’s tilted horizontally while charging, allowing it to display essential information, like the time and date.

Additionally, iOS 17 will support transcription for voice messages, have a new safety-focused Check In feature that lets you share your location with someone you’re meeting, and come with a NameDrop feature that allows you to easily share your email address or phone number with another iPhone user. Oh, and Apple’s dropping the “Hey” portion of its “Hey, Siri” trigger phrase .

Apple brings interactive widgets to iPadOS 17

With iPadOS 17, Apple is adding new interactive widgets that let you quickly access apps and features from the homescreen. There are also updates for the device’s Notes app, which will now be capable of detecting the fields in a PDF. It will also let you work with others in real time to organize and annotate PDFs.

Those aren’t the only updates coming with iPadOS 17. It will also feature a personalized lock screen, just like on iPhone, and will finally come with the Health app.

macOS Sonoma gets desktop widgets — and Death Stranding

Apple announced some visual upgrades to macOS Sonoma, which will now support widgets that you can add to your desktop, along with new moving screensavers that you can also use as your wallpaper. There are some new features for Safari as well , which let you create and pin web apps to your Dock, as well as make profiles for different browsing sessions.

Apple is also introducing a new “game mode” for macOS that will prioritize the GPU and CPU while gaming on a Mac and offers lowered audio latency on AirPods. As part of Apple’s push into gaming, developer Hideo Kojima also announced that Death Stranding (and some of his other games) will arrive on macOS .

Apple brings widgets back to watchOS 10

As you can see from the above announcements, widgets were pretty big at this year’s WWDC. They’re even coming to watchOS 10 , which you can browse through for an at-a-glance look at various information by turning your watch’s digital crown. Apple is also adding several new watch faces, a way to measure how much time you spend in the daylight, cycling features, and trailhead information for hikers.

FaceTime is coming to Apple TV

Apple will soon let you use FaceTime on Apple TV. The new capability leverages the iPhone’s Continuity Camera, allowing you to use your iPhone as a substitute for a webcam as you see and chat with the people you’re meeting with from your TV. It will even ensure that you’re in the frame using Center Stage.

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Apple event 2023 recap: iPhone 15 price, colors announced; Apple Watch Series 9 unveiled

Apple unveiled its latest products, including the new iPhone 15 models and Series 9 Apple Watch , during its annual September event in Cupertino, California, on Tuesday.

The standard iPhone 15 will start at $799, while the larger 15 Plus starts at $899. The iPhone 15 Pro starts at $999, and the larger iPhone Pro Max starts at $1,199.

All four iPhone models will be available for preorder Sept. 15 and available in stores Sept. 22.

The Series 9 watch will also go on sale Sept. 22 and be priced at $399.

The keynote presentation, which was called "Wonderlust," was held on Apple’s campus at the Steve Jobs Theater. The event has become an annual staple on the tech calendar, dating back to the debut of the original iPhone in 2007.

Here's what was announced at Apple's 2023 event:

iPhone 15 price, features

Apple debuted the iPhone 15, 15 Plus, 15 Pro and 15 Pro Max Tuesday.

The standard iPhone 15 will start at $799, while the 15 Plus will start at $899. The iPhone 15 will have a 6.1-inch display, and the 15 Plus will have a 6.7-inch display. 

The phones will have Dynamic Island, a redesigned notch at the top of the screen that takes up less visual space. The feature was first added to the iPhone 14 Pro models last year as a tool to track ongoing activity, like directions or the music you're listening to. 

The iPhone 15 base models will get the A16 chip used in the iPhone 14 Pro models.

What does the iPhone 15 look like?

Iphone 15 release date.

The iPhone 15 and 15 Plus will be available for preorder on Sept. 15, and they will be available online and in stores on Sept. 22.

iPhone 15 camera

The standard iPhone 15 models will have an improved camera system that will allow for greater optical zoom, switching from a 12-megapixel main camera sensor to a 48-megapixel version. 

The new camera has the same resolution as the camera on the iPhone 14 Pro.

iPhone 15 colors

The iPhone 15 will debut in five colors – black, blue, pink, white and yellow.

iPhone 15 Pro price, features

The iPhone 15 Pro starts at $999, while the iPhone Pro Max starts at $1,199.

The iPhone 15 Pro will have titanium sides, which replaces the stainless steel used since the iPhone X. The iPhone 15 Pro models will also have the faster A17 chip that the company claims will improve the mobile gaming experience.

iPhone 15 Pro camera

The iPhone 15 Pro models will have three cameras, similar to previous models, and a 48-megapixel main camera sensor.

The iPhone 15 Pro Max camera will have several new and updated features, including 5X optical zoom.

iPhone 15 Pro colors

The iPhone 15 Pro models will come in black, dark blue, dark gray and light grey.

Apple Watch Series 9 price, 'double-tap'

Apple also announced the newest model for the Apple Watch: the Series 9.

The primary upgrade comes from a new processing chip, called the S9 SiP, which the company claims will be faster than the one introduced in 2020.

The Series 9 will look similar to previous models, but it will have updated colors including pink, starlight and silver.

The Series 9 will also have a new feature called "double tap." The feature allows users to answer a call or control any number of actions in an app by tapping their index finger and thumb together, twice.

The watch will go on sale Sept. 22 and be priced at $399.

More about Apple Watch: How to get it

Apple Watch Ultra 2 price

Similar to the Series 9, the Apple Watch Ultra 2 will also have the "double tap” feature and have the S9 SiP processor.

The Ultra 2 will have on-device Siri, enabling faster, more accurate responses thanks to the S9 SiP.

The Apple Watch Ultra 2 will be $799.

APPLE WATCH ULTRA SERIES 2: OUTDOOR SMARTWATCH BUGALOO

Apple USB-C charger

Apple confirmed that its phones will move away from the company's Lightning charging system to a USB-C port . The changes will begin with the iPhone 15 line and AirPod charging case.

The change comes on the heels of regulations passed by the European Union to standardize the charging ports for electronic devices sold on the continent.

New iPhone 15 will use USB-C chargers: What to know about Apple's charging cord switch

Apple events through the years

More than 30 million people watched Apple’s 2022 event on YouTube.

Apple  unveiled the iPad in 2010 , the  Apple Watch in 2014  and the  AirPods in 2016 .

With more than 1.2 billion iPhones sold, Apple has “become a core part of people's lives around the world," Wedbush Securities analyst Dan Ives told USA TODAY. 

Apple generated more than $394 billion in net sales last year, and since its January 2007 unveiling of the first iPhone, the company's share price has risen more than 5,000%.

Apple: 16 years after the iPhone's launch, why Apple continues to play a huge role in our lives

Advice, staff picks, mythbusting, and more. Let us help you.

Everything Apple Announced at WWDC 2023: Vision Pro VR Headset, New Macs, and More

Published June 5, 2023

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Apple’s annual Worldwide Developers Conference is usually where the company shows off all the new software features coming to iPhones, iPads, Macs, and more.

But this year Apple launched an entirely new type of device at its usually software-focused event: an AR/VR headset. Here’s everything Apple announced at WWDC, from the Apple Vision Pro to iOS 17.

The biggest One More Thing: Apple Vision Pro

Apple’s long-rumored virtual reality and augmented reality headset is officially here. The Apple Vision Pro, which goes on sale early next year for $3,500, is what CEO Tim Cook calls the first Apple product you look through, rather than look at. It’s shaping up to be the slimmest mixed-reality headset released so far, and during the presentation, Apple showed off the ability to use the device like a laptop, a TV screen, and a gaming platform.

Design and display

The Vision Pro is a headset designed by Apple, so it has a distinctly Apple aesthetic. The display, which consists of a glass front and an aluminum frame, connects to a soft headband that the wearer can adjust for better fit or swap out. The headset has a thin braided cable that attaches to an external aluminum battery pack the size of a deck of cards, which the wearer can slip into a pocket. Apple claims that it studied thousands of heads as part of its research in designing the headset. Folks who wear glasses will be able to use the headset, too—Apple partnered with Zeiss to develop custom optical inserts to magnetically fit inside the display. Those inserts will be sold separately, though, and it’s unclear how much they’ll cost.

The Apple Vision Pro has a feature called EyeSight, which lets you control the transparency of its display using a digital crown, much like on the Apple Watch. The opacity ranges from an augmented reality view, where you can fully see your room through cameras (and people can see your eyes on the external display), to an opaque virtual reality mode that you can set for a more immersive experience.

Vision Pro apps (and how to use them)

Apple wants the Vision Pro to span work and entertainment. The headset wirelessly and automatically connects to a Mac, and you can take over your computer’s desktop (as well as all of its processing power) when wearing the headset. At WWDC, Apple showed off the headset as a tool for running more interactive meetings and working with colleagues, but the company also demonstrated how the headset could create a portable cinema and gaming experience.

You control the Vision Pro through hand gestures, eye movements, and your voice. Apple calls the technology “spatial computing,” and during the presentation, Cook likened it to a new generation of computing, much as the smartphone was.

The headset tracks a tremendous amount of data using lidar, a TrueDepth camera, and many other cameras to track hand movement. The Vision Pro has an M2 chip inside, as the latest Macs do, but it’s also powered by a new chip called the R1, which processes the data from 12 cameras, five sensors, and six microphones in real time. The Vision Pro also has a 3D camera, which can record 3D-format video that you can rewatch on the headset.

When you set up the Vision Pro, it uses its cameras and sensors to create your “persona,” which will appear in FaceTime calls and other situations when you’re virtually “with” another person. Your persona is essentially a 3D capture of your likeness. Whether that avatar has legs is currently unclear.

The operating system on the device, visionOS, has a number of processes to specifically handle all the cameras and the timing needs to coordinate all the hardware packed into the headset. The new headset supports apps, which you install from a new visionOS app store. When you slip the headset on, apps appear levitating in front of you, and you can select them using your eye movements, hand gestures, or voice. You’ll also be able to interact with existing Apple apps like Messages and Safari in different ways, such as pulling a 3D object out of Messages to view it on its own. Because Apple gave early access to the Vision Pro to high-profile developers, Microsoft apps such as Excel and Word, for example, are already compatible.

In a huge move, Apple has partnered with Disney to make Disney+ available on the Vision Pro at launch. Disney CEO Bob Iger appeared at WWDC to show the ways in which Disney characters like Mickey Mouse could appear in augmented reality on the headset.

15-inch M2 MacBook Air

Apple’s latest MacBook Air is a big one: The 15-inch M2 MacBook Air is a larger version of our upgrade pick, the 13-inch M2 MacBook Air. The new laptop will have the same layout as its 13-inch sibling, with two USB-C Thunderbolt 4 ports, a MagSafe port for charging, and a headphone jack. Its 15.3-inch screen is capable of 500 nits of brightness, which makes it great for typing in bright conditions (which would have come in handy here on the ground at Apple Park, to be honest). It will cost $1,300 when it goes on sale next week, and the 13-inch M2 MacBook Air will get a price reduction to $1,100. The new MacBook Air is available to preorder today.

Mac Studio and Mac Pro

Apple is also releasing the second generation of the Mac Studio, built on the ultra-powerful M2 Max and M2 Ultra chips. The new Mac Studio will be capable of using 192 GB of unified memory, a few levels beyond the 8 GB to 16 GB of RAM that we recommend for most computers. Apple says that the new Mac Studio can support up to six Pro Display XDR displays. The Mac Studio starts at $2,000 and goes on sale next week.

Apple’s custom chips are also surprisingly making their way to the Mac Pro, the wildly powerful computer typically sold to enterprise customers such as film and animation studios. The new Mac Pro will be outfitted with the M2 Ultra chip, which Apple says is capable of importing 24 separate 4K camera feeds and encoding them to the ProRes format in real time. The new Mac Pro will have eight Thunderbolt 4 ports and six open PCI-e expansion slots. Apple says that with this latest announcement the company’s transition of its product line to Apple silicon is complete. The Mac Pro starts at a breathtakingly high $7,000 when it goes on sale next week.

iOS 17: Stickers, StandBy, and Siri

iOS 17 is coming, and it’s packed with small improvements that will make using your iPhone easier—and more fun. Here are the biggest features you can expect to take advantage of this fall:

Apple is adding Contact Posters, which you can create to share a photo and text to display when you’re calling a contact. The customization looks a lot like what Apple released for the lock screen and home screen last year, so you can expect similar levels of artistic expression. Contact Posters will also be available within individual contacts.

When you miss (or dodge) a call, Apple will start automatically transcribing the voicemail in real time, so you can read what the voicemail contains as the caller is recording it. This is an advanced way to screen calls that you might not want to pick up. You’ll also be able to leave FaceTime voicemails in the form of short video clips.

A new safety feature called Check In, which activates while you’re driving, can automatically notify family members or friends when you safely arrive at a location. Those you invite to track you can see your route, how much cell service you have, and your phone’s battery level. If you intentionally deviate from your route or stop, Check In can also send your contacts an alert so that they don’t worry.

If you tend to spend hours lovingly creating Memojis that look just like you to share with friends, you’ll probably love Apple’s new Stickers feature, which lets you make, well, stickers out of Live Photos. You can then send them to friends in iMessage.

Apple is adding a new feature to AirDrop called NameDrop, which is a new way of sharing contact information with others. You’ll be able to customize the Contact Poster and contact information you share. In a huge update, AirDrop will also be able to continue over the internet if your phones or devices leave range.

Even autocorrect is getting overhauled in iOS 17. The artificial intelligence that powers transcription on iOS is receiving an upgrade such that it will learn the words and phrases you use most often (so it won’t change your intended curse word to “ducking,” for instance).

The next version of iOS will also include Journal, a new multimedia journaling app designed to preserve memories in a more structured way than just looking back through your photo library.

In iOS 17, iPhones will have a new mode called StandBy. When the screen is off and you turn the phone horizontally, a screen with a clock (and perhaps a widget, if you so choose) will appear. The new mode is oriented towards at-a-glance information, as it also supports live activities and Siri.

Speaking of the voice assistant, you’ll finally be able to drop the “Hey” from “Hey Siri,” and you’ll be able to ask two questions in one.

macOS Sonoma: Desktop widgets and more

The latest version of macOS, called Sonoma, will bring the Mac ever closer to the iPhone. The biggest feature is the addition of widgets, which you’ll be able to pin directly to your desktop. These desktop widgets will automatically adapt when you switch windows, in an effort to look less distracting. You’ll also be able to access and pin widgets from your iPhone on your MacBook desktop screen.

Apple is also still trying to make gaming a thing on Macs. Sonoma adds a Game Mode, which prioritizes a game’s performance over other applications running on the Mac. And Apple is aiming to make game-development time faster and easier for Macs by introducing a game-porting toolkit to bring PC games to Macs.

Famous video game developer Hideo Kojima appeared at WWDC to announce that Death Stranding: Director’s Cut will be coming to Mac later this year. Kojima, best known for the Metal Gear Solid games, said that this is just the beginning of bringing games to the Mac.

macOS Sonoma also delivers video-conferencing improvements that let you add presentation effects, such as fireworks effects that appear when you’re giving a double thumbs-up, or the ability to put your screen’s contents over your shoulder like a news anchor. You’ll be able to use these effects in any app, including Zoom and Microsoft Teams.

Apple’s Safari web browser will add profiles, much like the wildly useful functionality already in Google Chrome; with profiles, you can keep your work and personal browsing separate. Safari will also integrate the ability to share and edit passwords between people. You’ll also be able to pin certain websites to your Mac dock, and macOS will automatically call it up as a web app.

watchOS 10: All about health and fitness

The Apple Watch is all about fitness, and soon the smartwatch will be able to connect to bike sensors, which will allow hardcore cyclists to integrate way more data into their tracking. A new cycling Live Activity will also let you use your phone to view trip data.

The Compass app is getting a big update to automatically log two waypoints, which will be useful for hikers. The first waypoint will automatically log the last place you had regular cell service, and the second waypoint will be for a previous location where you can make an SOS call. You can view these waypoints within the Compass app in a new 3D space.

The Health app is turning into a resource for paying more attention to your mental health, with a mood tracker and screening questionnaires that you can share with your healthcare provider.

The Apple Watch’s face is about to become more useful, too. A photo that serves as a watch face can be beautiful, but it’s not informative. With watchOS 10, you can use a full-screen photo as a face and then scroll up to reveal a list of suggested widgets and apps. The feature looks a lot like the Siri screen, just implemented in a more dynamic way.

Also coming soon are new watch-face options: Snoopy is coming in a variety of poses, and the watch’s face can even react to the weather. A new option called Palette shows the time in an array of bright colors. But third-party apps still can’t offer watch faces, which is something that developers (and Apple Watch owners) have been asking for forever.

iPadOS 17: Small changes

This fall, the iPad is getting a software upgrade, too. iPadOS 17 will include changes to the home screen and lock screen. Apple is changing widgets on the iPad by making them interactive, rather than just static buttons or information displays on the home screen. The lock screen’s redesign will include the addition of widgets, Live Activities, and a new astronomy screen.

The iPad is designed to get work done, and Apple has finally gotten around to reworking the way the tablet handles PDFs. You’ll be able to fill, annotate, and generally work with PDFs better on the iPad. The iPad will also be able to handle live editing of a PDF between two Apple devices over a FaceTime call.

The Health app is coming to the iPad, and it’s coming with a new dashboard for the tablet’s larger screen. It’s more focused on data and charts, so you’ll be able to dive into all the health data your Apple Watch generates.

On top of all that, you’ll be able to set multiple timers at once for the first time, which is game-changing (though we’re still unclear as to whether that feature is coming to iPhones, too).

Audio improvements: AirPods, AirPlay, and Apple TV

The AirPods Pro earbuds are getting some new-to-Apple features. A new “conversation awareness mode” senses when you are talking, automatically lowers your music volume, and turns on the earbuds’ transparency mode. This excellent feature, which enables quick conversations, was popularized by Sony several years ago.

The adaptive awareness mode reduces low-frequency noises such as airplane engine hum while allowing higher frequencies, such as speech, to reach your ears. JBL and 1More have had a similar setting as part of their ANC options, though Apple seems to be making the transition automatic rather than toggled via button push.

Apple also claims to have improved background-noise reduction over phone calls. The tricky part about noise reduction for microphones is that non-vocal sounds in the same frequency ranges as the human voice may still be picked up when the earbuds’ wearer is speaking. Earbuds can somewhat mitigate this effect with directional beam-forming microphones that aim at the wearer’s mouth, but we’ve never experienced a reduction similar to that affecting the marching-band-level sounds in Apple’s video demo during the WWDC presentation. Regardless, we will be sure to test this function when the update is released.

AirPlay, which lets you easily cast audio and video from your iPhone or iPad to a compatible device, is also getting huge improvements. In hotel rooms, you’ll be able to use AirPlay to send audio or video to the room’s TV by scanning a QR code. CarPlay users will be able to share control of the car’s music with iPhone users using the SharePlay feature.

And FaceTime is coming to the Apple TV—sort of. The set-top box doesn’t have a camera, so you have to set up your iPhone or iPad to serve as your camera, but then you can see the FaceTime call on your big screen.

Additional reporting by Lauren Dragan.

This article was edited by Caitlin McGarry.

Apple Event 2023 — all the product announcements just revealed in new report

Expect to see the iPhone 15 series, new Apple Watches and USB-C charging AirPods among other big reveals

Apple’s September event — “Wonderlust” — is almost here. On September 12, Apple is set to officially unveil the  iPhone 15 ,  iPhone 15 Pro  and more of its most highly anticipated new products. Also tipped to make an appearance are the  Apple Watch Series 9 , the  Apple Watch Ultra 2 , changes coming with iOS 17 , and the latest AirPods. 

Rumors have been swirling for a while now about what to expect, but a Friday report from Bloomberg's Mark Gurman gives us our most comprehensive glimpse to date into Apple's plans. While we aren't likely to see a flashy new product like the Vision Pro headset revealed at Apple's June event, expect a packed showcase for Apple's flagship devices like the iPhone, Apple Watch and AirPods, Gurman said, citing unnamed sources familiar with the company's plans.  

Check out our guide on how to watch Apple's Wonderlust event , including where you can find a live stream and what to expect. And read on for everything you can expect at Apple's September showcase based on Bloomberg's report. 

iPhone 15 and iPhone 15 Pro 

First up is Apple's next-gen iPhone 15 series. Apple is expected to debut four models: the iPhone 15, 15 Plus, 15 Pro and the 15 Pro Max , which, contrary to rumors, will keep the "Max" naming system instead of being called the iPhone 15 Ultra as some have speculated, Gurman said. 

The standard iPhone 15 and larger 15 Plus will keep the same aluminum sides and glass back as we saw on the base models of the iPhone 14 series. Their screens will remain the same dimensions as well, using a 6.1-inch and 6.7-inch display, respectively, but will appear slightly larger as Apple has shaved down the bezels to just 1.5mm . To create the slimmer bezels, Apple's employed a new manufacturing process called LIPO, or low-injection pressure overmolding.

The non-Pro models will also get the Dynamic Island first introduced with the iPhone 14 Pro and 14 Pro Max . It's one of the iPhone's latest and most novel features, replacing the traditional iPhone notch with an interactive way for users to access their notifications and mini-players in an instant. The camera upgrades we saw with last year's high-end models are also coming to the standard iPhone 15 and 15 Plus, which will move from a 12-megapixel main camera sensor to a 48-megapixel version. 

Meanwhile, the high-end options, the 15 Pro and 15 Pro Max, are set to switch from stainless steel to titanium frames that are more durable and lighter. "The titanium on the Pro phones has a brushed look and replaces the fingerprint-prone steel used since the iPhone X line," Gurman said. 

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But a new look isn't the only upgrade in store. The iPhone 15 Pro and 15 Pro Max will reportedly pack Apple's lastest-and-greatest A17 Bionic chip for a massive boost in terms of performance and especially battery life. The Pro phones will also ditch the ring/mute switch in favor of an Action Button , which users can program with handy shortcuts such as enabling Do Not Disturb or Low Power Mode and more. The iPhone 15 Pro Max is set to get the biggest camera upgrade of the bunch: an updated periscope-style telephoto system capable of up to 6x optical zoom. 

All four iPhone 15 models are expected to finally make the switch from Apple's proprietary Lightning port to USB-C in accordance with EU regulations. As well as feature a U2 ultrawide-band semiconductor to enhance location capabilities for more accurate tracking in the Find My app. As for color options, Gurman said the regular models will come in pink, black, white, blue and yellow, while the Pro phones will come in gray, black, dark blue and white.

Apple Watch 9 and Apple Watch Ultra 2

On the wearables front, Gurman says Apple has two announcements in store: the Apple Watch Series 9 — available in the current 41-millimeter and 45-millimeter sizes — and the second iteration of its more rugged Apple Watch Ultra , which sticks with the 49-millimeter size.

Aesthetically, these new Apple Watches aren't likely to appear very different from their predecessors. Though Apple is planning new materials and colors, including using more recycled metals and a black Ultra option. 

The biggest upgrades are under the hood, as the watches are set to get their first new chip since 2020's Series 6. As with the iPhone 15, the Series 9 and new Apple Watch Ultra will pack a U2 ultra-wideband chip for enhanced Find My capabilities. Several sensor and internal component upgrades are also in the works, including a new version of Apple’s optical heart rate sensor.

AirPods with USB-C

Last but not least, we can expect to see the iPhone 15 line's USB-C charging capabilities make their way to AirPods as Apple shifts its Lightning-based accessories over to the new standard. At the top of that list are the AirPods Pro , though we could see its standard AirPods and AirPods Max upgraded to USB-C charging as early as next year.

Beyond switching out the charging port, the earbuds will get a software update that adds the ability to mute and unmute from the AirPods themselves, improved automatic device switching, and a new feature called Conversation Awareness that silences media automatically when it detects people speaking to the wearer. New health features like body-temperature sensing and a new hearing test system are also in the works, though Gurman says Apple's likely to release them later on. 

More from Tom's Guide

• iPhone 15 looks like the ultimate hand-me-down phone — here's why
• Apple Event 2023 — pre-orders for new products could start sooner than we thought
• Apple’s September event could miss out one crucial product — and that’s a shame

Alyse Stanley is a news editor at Tom’s Guide overseeing weekend coverage and writing about the latest in tech, gaming and entertainment. Prior to joining Tom’s Guide, Alyse worked as an editor for the Washington Post’s sunsetted video game section, Launcher. She previously led Gizmodo’s weekend news desk, where she covered breaking tech news — everything from the latest spec rumors and gadget launches to social media policy and cybersecurity threats.  She has also written game reviews and features as a freelance reporter for outlets like Polygon, Unwinnable, and Rock, Paper, Shotgun. She’s a big fan of horror movies, cartoons, and miniature painting.

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Apple Roadmap 2023-2024: 17 new products revealed including M3 MacBooks and OLED iPads

One... Or two more things...

Apple , hot on the heels of unveiling the Vision Pro at this year’s WWDC, has big plans ahead for 2023 if Bloomberg’s Mark Gurman is to be believed. The Cupertino company could unveil a horde of hardware over the next year, including revamped iPad Pros and the debut of M3 Apple Silicon chips in MacBook Pro models.

According to the report, Apple looks set to offer a stacked showcase of spruced-up stock as it reveals a comprehensive refresh of its existing products across the next year. Has Apple’s roadmap for 2023 been laid bare, and what exactly are we likely to see revealed? Let’s dive deeper into Gurman’s words and see what could be heading our way this fall.

Apple’s next steps: 2023 - 2024

• iPhone 15 / iPhone 15 Plus / iPhone 15 Pro / iPhone 15 Pro Max
• Apple Watch Series 9 (N207, N208)
• Apple Watch Ultra Gen 2 (N210)

One of Apple’s immediate focuses will be on wrapping up work on the Vision Pro’s operating system VisionOS and accompanying apps. This month’s Vision Pro presentation only showed a fraction of the promised apps because many are still in development, meaning Apple will be full steam ahead on software development to ensure everything is ready for a 2024 release.

We’re reasonably confident that this fall will see Apple roll out the iPhone 15 lineup of devices, likely to be announced at its September event and released shortly thereafter — potentially as early as September 12.

Also expected to make an appearance at the September event are two new Apple Watch Series 9 models and a second-gen Apple Watch Ultra. The latter of which even has an outside chance of being the first Apple product to feature a micro-LED display. 

Apple’s next steps: 2024 and beyond

• M3 13-inch MacBook Pro (J504)
• M3 Pro 14-inch MacBook Pro (J514)
• M3 Max 16-inch MacBook Pro (J516)
• 2024 iMac 24-inch models (J433, J434)
• 2024 13-inch MacBook Air (J613)
• 2024 15-inch MacBook Air (J615)
• OLED iPad Pro models (J717, J720)
• 2024 iPad Air to replace M1 model (J717)

Once a busy 2023 has been put to rest, Apple is looking to make big changes to its existing products in 2024 and beyond. According to Gurman, Apple is already turning its attention to the second generation of Vision Pro AR/VR headsets, which will likely feature both high-end and lower-end models.

The new headsets will hopefully strive to include some of the features left on the workshop floor for Apple’s Vision Pro including virtual monitor support for multiple Mac devices, support for multiple Personas in FaceTime calls, and more of a focus on virtual fitness and Fitness+ content.

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However, those plans are long-term, think 2025 long-term, and Apple has more immediate goals to meet when it comes to keeping its catalog fresh. In fact, the next year could be one of the biggest yet for Apple as not only will it see the launch of the Vision Pro headset, but any number of the following devices currently being worked on: 

Apple is also reportedly early in the development of the third-generation of AirPods Pro and even home hub-like devices such as smart displays alongside an improved Apple TV set-top box. 

If you thought 2023 was a big year for Apple, then 2024 could be the brand’s best yet. The long-awaited M3 Apple Silicon chip could be a game changer for iMac and MacBook Pro devices and really elevate Apple’s offerings ahead of the pack — a pack that is presently closing the gap when it comes to thin, lightweight, efficient, and powerful options. 

Rael Hornby, potentially influenced by far too many LucasArts titles at an early age, once thought he’d grow up to be a mighty pirate. However, after several interventions with close friends and family members, you’re now much more likely to see his name attached to the bylines of tech articles. While not maintaining a double life as an aspiring writer by day and indie game dev by night, you’ll find him sat in a corner somewhere muttering to himself about microtransactions or hunting down promising indie games on Twitter.

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The Apple WWDC 2023 #1 Keynote Formula Hands-Down

June 9, 2023.

Dennis Limmer

Apple WWDC Keynote Techniques have long been the gold standard for product launch presentations, captivating audiences with their engaging storytelling and sleek visuals. This blog post will delve into the intricacies of these renowned events, offering valuable insights into what makes them so successful.

We’ll explore Apple’s unique keynote structure, which often features opening videos that set the stage for upcoming announcements. Additionally, we’ll discuss how Apple effectively utilizes marketing terms over technical jargon to create a more accessible experience for its audience.

As we continue our examination of Apple WWDC 2023 Keynote Techniques, you can expect to learn about the company’s emphasis on cohesive storytelling and design-focused presentations. Finally, we’ll touch upon the influence that these techniques have had on other tech companies’ events and why it remains challenging for competitors to replicate such engagement levels in their own presentations.

Apple WWDC 2023 Keynote Structure

For over two decades, Apple has used a consistent structure for its  keynotes , which has become essential to their product launch success.

The presentations start with an opening video that sets the theme for the event, followed by several videos showcasing how Apple products have improved people’s lives and demonstrate new features.

Opening Video Sets the Stage

The opening video serves as a powerful introduction to what’s to come during the presentation, highlighting key themes like innovation and creativity.

Videos Highlight Product Impact and Innovations

• Innovative Features:  Videos focus on specific innovations within each product release, emphasizing both functionality and design improvements.
• User Testimonials:  Including testimonials from real users helps demonstrate tangible benefits while humanizing technology.
• Demonstrations:  Live demonstrations provide a firsthand look at how new features work in real-time scenarios, reinforcing why attendees should be excited about upcoming releases.

This strategic use of visuals keeps audiences engaged and conveys complex ideas more effectively than relying solely on verbal explanations.

Apple WWDC 2023 : Marketing Terms Over Technical Jargon

Apple’s keynote presentations stand out for their ability to communicate complex ideas in a simple and engaging manner, using fancy marketing terms like Retina or  3D Touch  instead of technical specifications.

• Accessible language:  By avoiding jargon, Apple ensures that its presentations are understandable to a wider audience, including non-tech-savvy individuals.
• Clear and simple messaging:  Easy-to-understand language allows Apple presenters to focus on how new features will enhance users’ lives, making it easier for viewers to remember key takeaways from the event.

Using this technique in your own presentations can help you better connect with your audience by making complex concepts more digestible, proving that sometimes less is more when it comes to explaining technology.

Cohesive Storytelling

Apple stands out from other tech companies by telling a cohesive story during keynote presentations, connecting all aspects of the event through engaging storytelling.

Engaging storytelling techniques

Apple’s presenters captivate audiences with personal anecdotes and relatable examples, making complex concepts easier to understand.

• Tactic:  Using personal anecdotes and relatable examples to illustrate benefits of products.

For example, when introducing the  Apple Pencil , they demonstrated how it could be used in various creative scenarios.

Building anticipation before product launches

Apple generates excitement by hinting at upcoming features and showcasing teaser videos to create buzz around each announcement.

• Tactic:  Hinting at upcoming features without revealing too much information.
• Tactic:  Showcasing teaser videos with intriguing visuals but no specifics.

These strategies encourage viewers to tune into the live event for full details on what’s coming next from Apple.

By incorporating these elements into their keynotes, Apple crafts an immersive narrative that keeps audiences captivated and eager for more information about their latest innovations.

Apple WWDC 2023: Design-Focused Presentations

Apple keynotes prioritize design, showcasing surgical-grade stainless steel construction and stunning gold finishes to create desire among consumers who appreciate both form and function.

Showcasing Premium Materials

Apple emphasizes the high-quality materials used in their products, such as the ceramic shield introduced with iPhone 12 that offers four times better drop performance than previous models.

Highlighting Aesthetic Elements

• Liquid Retina Display:  Featured during the iPad Pro launch event, this advanced display technology provides an immersive visual experience through its edge-to-edge screen design.
• Gorgeous Finishes:  Apple frequently introduces new color options for its devices, like the luxurious Gold finish for iPhones, to entice potential buyers who value personalization and style.

Apple’s incorporation of attractive designs into their product range enables them to stand out from other companies, whilst maintaining a solid brand image based on sophisticated looks and cutting-edge features.

Apple WWDC 2023: Influence on Other Tech Companies’ Events

The success of Apple’s keynotes has led many other tech companies, such as  Google  and Samsung, to adopt similar presentation styles, but they often struggle to replicate the same level of engagement.

Adoption of Apple-Style Presentations by Competitors

Competitors have tried to emulate Apple’s keynote techniques to generate excitement around their products, as seen in events like Google I/O or Samsung Unpacked.

Challenges Faced by Other Companies in Replicating Engagement

• Cohesive Storytelling:  Unlike Apple, some tech companies fail to create a captivating narrative that connects all aspects of their event, making it difficult for audiences to stay engaged.
• Clear Messaging:  Many presentations from competing brands tend to focus on technical jargon rather than using simple marketing terms that resonate with consumers, resulting in unclear messaging.
• Aesthetic Appeal:  While some competitors emphasize design elements during product launches, they often fall short when compared with Apple’s meticulous attention-to-detail approach towards aesthetics.

To capture consumer interest and build anticipation for product launches like Apple does, other tech companies need to prioritize cohesive storytelling and clear messaging while maintaining high standards for design aesthetics within their presentations.  Imitation may be the best form of admiration. 

Apple WWDC 2023: Conclusion

Apple Keynote Techniques  are the gold standard for presentations in the tech industry, emphasizing storytelling, design, and simplicity to create a unique brand that’s hard to replicate.

Retail professionals can learn from Apple’s marketing approach, which prioritizes clear language over technical jargon and cohesive storytelling to showcase products effectively.

By taking inspiration from Apple’s design-focused presentations, retailers can elevate their own product displays and create a more engaging shopping experience for customers.

This is the future of retail that’s taking shape along with Apple’s presentation about their upcoming technology, so make sure to stay tuned in to RetailWire for more developments.

FAQs in Relation to Apple WWDC 2023 Keynote Techniques

Pros and cons of using keynote.

Pros: Keynote’s user-friendly interface, high-quality templates, seamless integration with Apple products, and compatibility with PowerPoint

Cons: Limited customization options and a lack of advanced features for professionals

Effective Keynote Usage

Choose an appropriate template, organize content into clear sections, utilize visuals, practice storytelling techniques, maintain simplicity in design, and rehearse delivery for smooth transitions.

Notable Keynote Features

Cohesive storytelling, design-focused presentations, and accessible marketing terms are three notable features of Apple keynote presentations.

Purpose of Apple Keynote

Apple keynotes introduce new products or services while showcasing their innovations in a compelling manner to build anticipation among consumers.

Dennis Limmer is a seasoned journalist with RetailWire, dedicated to bringing the latest in retail news, trends, and product insights to readers. With a sharp eye for detail and a deep understanding of the retail landscape, Dennis's articles offer a blend of in-depth analysis and timely information, making him a trusted voice in the industry.

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Why Republicans are calling Walz 'Tampon Tim' — and why Democrats embrace it

Rachel Treisman

Minnesota Gov. Tim Walz, pictured at a campaign rally in Philadelphia on Tuesday, is getting attention for a law he signed last year requiring public schools to provide free period products. Matt Rourke/AP hide caption

For more on the 2024 election, head to the NPR Network's live updates page.

Republican critics of Democratic vice presidential candidate Tim Walz have given him a new nickname: “Tampon Tim.”

After Vice President Harris announced her pick , Stephen Miller, a former adviser to former President Donald Trump, tweeted , “She actually chose Tampon Tim.” Chaya Raichik, who runs the far-right social media account Libs of TikTok, photoshopped Walz’s face onto a Tampax box.

#TamponTim pic.twitter.com/eBPyEOSWPC — Chaya Raichik (@ChayaRaichik10) August 6, 2024

“Tampon Tim is hands down the best political nickname ever,” tweeted conservative commentator Liz Wheeler. “It’s so… savagely effective. In one word tells you EVERYTHING you need to know about Tim Walz’s dangerous radicalism.”

The moniker refers to a law that Walz, the governor of Minnesota, signed last year, requiring public schools to provide menstrual products — including pads and tampons — to students in 4th through 12th grades.

The products are free for students, with the state paying about $2 per pupil to keep them stocked throughout the school year.

Takeaways from Tim Walz's introduction to the national stage

The law, which was the result of years of advocacy by students and their allies, took effect on Jan. 1, though students say the rollout has so far been smoother in some school districts than others .

It makes Minnesota one of 28 states (and Washington D.C.) that have passed laws aimed at giving students access to menstrual products in schools, according to the Alliance for Period Supplies.

The issue enjoys broad popular support: 30 states have eliminated state sales tax on menstrual products, and Trump himself signed a 2018 package that requires federal prisons to provide them.

But Republicans appear to be taking issue with the wording of the legislation, which says the products must be available “to all menstruating students in restrooms regularly used by students.”

Some Minnesota Republicans initially tried to limit the initiative to female-assigned and gender-neutral bathrooms, but were unsuccessful. Even the author of that amendment ultimately voted for the final version of the bill, saying his family members “felt like it was an important issue I should support.”

The bill’s inclusive language reflects that not all people who menstruate are women, and not all women get periods, which was important to those who lobbied for the legislation.

“It will make it more comfortable for everyone … then people can use whatever restroom they want without being worried,” Bramwell Lundquist, then 15, told MPR News last year.

But some in the Republican Party — which has increasingly promoted anti-transgender policies and rhetoric — see that aspect of the bill as a reason to attack Walz.

“Tim Walz is a weird radical liberal,” the MAGA War Room account posted on X, formerly Twitter. “What could be weirder than signing a bill requiring schools to stock tampons in boys' bathrooms?”

'Midwestern Nice' and 'Fun Dad' posts abound after Tim Walz is named VP pick

Trump campaign spokesperson Karoline Leavitt made a similar argument in a Tuesday appearance on Fox News .

“As a woman, I think there is no greater threat to our health than leaders who support gender-transition surgeries for young minors, who support putting tampons in men’s bathrooms in public schools,” she said. “Those are radical policies that Tim Walz supports. He actually signed a bill to do that.”

LGBTQ rights groups have cheered Walz’s selection and praised his track record, which includes a 2023 executive order making Minnesota one of the first states to safeguard access to gender-affirming health care, as dozens of states seek to ban it .

Walz, who once earned the title “ most inspiring teacher ” at the high school where he taught and coached football, hasn’t responded publicly to the “Tampon Tim” taunts. But he had strong words for his Republican opponents on Tuesday night.

“I'll just say it: Donald Trump and JD Vance are creepy and, yes, weird,” he tweeted , repeating the put-down he helped popularize in recent days. “We are not going back.”

Many on the left see “Tampon Tim” as a compliment

Democratic Minnesota Rep. Sandra Feist, the chief sponsor of the bill in the state House, sold it as a "wise investment" , explaining to her colleagues last year that “one out of every 10 menstruating youth miss school” due to a lack of access to menstrual products and resources.

She defended it again in a tweet on Wednesday morning, saying she was grateful to have partnered with Walz to address period poverty .

“This law exemplifies what we can accomplish when we listen to students to address their needs,” she wrote. “Excited to see MN representation at the top of the ticket!”

Feist ended the tweet with the hashtag #TamponTim.

Other Democratic figures have embraced both the hashtag and the policy behind it.

The case for free tampons and pads in schools

Many social media users responded that providing tampons in schools isn’t the bad thing that Republicans are making it out to be — and in fact, they see it as the opposite.

Former presidential candidate Hillary Clinton said it was “nice of the Trump camp to help publicize Gov. Tim Walz’s compassionate and common-sense policy,” adding, “Let’s do this everywhere.”

Former Georgia State Rep. Bee Nguyen said Walz, as a former teacher, understands how the lack of access to menstrual products impacts educational outcomes.

“This makes me an even bigger fan of Tampon Tim,” she added.

Nearly 1 in 4 students have struggled to afford period products in the United States, according to a 2023 study commissioned by Thinx and PERIOD. Experts say period poverty is more than just a hassle : It’s an issue of public and personal health, dignity and more.

The Minnesota students who lobbied for the bill testified last year about having to miss class because they were unable to afford menstrual products, being distracted from schoolwork and tests and feeling that adults didn’t take their concern seriously.

“We cannot learn while we are leaking,” high school student Elif Ozturk, then 16, told a legislative hearing in 2023. “How do we expect our students to carry this burden with them during the school day and still perform well? The number one priority should be to learn, not to find a pad.”

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Apple Inc. (AAPL) Q3 2024 Earnings Call Transcript

Apple Inc. ( NASDAQ: AAPL ) Q3 2024 Earnings Conference Call August 1, 2024 5:00 PM ET

Company Participants

Suhasini Chandramouli - Director of IR Tim Cook - CEO Luca Maestri - CFO

Conference Call Participants

Erik Woodring - Morgan Stanley Ben Reitzes - Melius Mike Ng - Goldman Sachs Amit Daryanani - Evercore Wamsi Mohan - Bank of America Krish Sankar - TD Cowen David Vogt - UBS Atif Malik - Citi Samik Chatterjee - JPMorgan Richard Kramer - Arete Research

Suhasini Chandramouli

Good afternoon and welcome to the Apple Q3 Fiscal Year 2024 Earnings Conference Call. My name is Suhasini Chandramouli, Director of Investor Relations. Today's call is being recorded.

Speaking first today is Apple’s CEO, Tim Cook, and he'll be followed by CFO, Luca Maestri. After that, we'll open the call to questions from analysts. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation, and future business outlook including the potential impact of macroeconomic conditions on the company's business and results of operations.

These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in Apple's most recently filed Annual Report on Form 10-K and the Form 8-K filed with the SEC today along with the associated press release. Apple assumes no obligation to update any forward-looking statements which speak only as of the date they are made.

I'd now like to turn the call over to Tim for introductory remarks.

Thank you Suhasini. Good afternoon everyone and thanks for joining the call. Today, Apple is reporting a new June quarter revenue record of $85.8 billion, up 5% from a year ago and better than we had expected. EPS grew double digits to $1.40 and achieved a record for the June quarter. We also set quarterly revenue records in more than two dozen countries and regions, including Canada, Mexico, France, Germany, the UK, India, Indonesia, the Philippines, and Thailand. And we set an all-time revenue record in services which grew 14%.

At our Worldwide Developers Conference, we were thrilled to unveil game-changing updates across our platforms, including Apple Intelligence. Apple Intelligence builds on years of innovation and investment in AI and Machine Learning. It will transform how users interact with technology, from writing tools to help you express yourself, to image playground, which gives you the ability to create fun images and communicate in new ways, to powerful tools for summarizing and prioritizing notifications.

Siri also becomes more natural, more useful, and more personal than ever. Apple Intelligence is built on a foundation of privacy, both through on-device processing that does not collect users' data and through private cloud compute, a groundbreaking new approach to using the cloud, while protecting users' information powered by Apple silicon. We are also integrating

ChatGPT into experiences within iPhone, Mac, and iPad, enabling users to draw on a broad base of world knowledge.

We are very excited about Apple Intelligence and we remain incredibly optimistic about the extraordinary possibilities of AI and its ability to enrich customers' lives. We will continue to make significant investments in this technology and dedicate ourselves to the innovation that will unlock its full potential.

Recently, we've also been excited to bring Apple Vision Pro to more countries, giving customers the chance to discover the remarkable capabilities of this magical device. Vision Pro users are customizing their own workspaces, watching movies on 100-foot screens, and exploring entire worlds with just a pinch of their fingertips.

With more than 2,500 native spatial apps and 1.5 million compatible apps for Vision OS, the developer community continues to pioneer stunning spatial experiences that are only possible with Vision Pro. Last month, we announced that we're bringing some amazing new immersive content to Vision Pro, including new series, concerts, films, and more. And we've seen great interest for Vision Pro in the enterprise, where it can empower companies large and small to pursue their best ideas like never before.

With each innovation, we're unlocking new ways of working, new ways of learning, and new ways of tapping into the unlimited promise of human potential. We are doing that across every product and every service.

Now let me share more detail in our June quarter results, beginning with iPhone. iPhone revenue was $39.3 billion, down 1% year-over-year. On a constant currency basis, we grew compared to last year. Customers continue to praise the iPhone 15 lineup for its incredible battery life, exceptional cameras, and unmatched power and performance.

And we are excited to bring incredible new features to the iPhone with iOS 18, making it more personal, capable, and intelligent than ever before. This update includes the biggest redesign of the Photos app, new customization options for the home screen, messages over satellite, and the introduction of Apple Intelligence. Apple Intelligence utilizes the power of our most advanced iPhones, the iPhone 15 Pro and Pro Max, offering a transformative set of capabilities.

Mac revenue was $7 billion, up 2% from a year ago. Customers are loving the latest M3-powered 13 and 15 inch MacBook Air. With back-to-school season upon us, MacBook Air is the perfect companion for students on campus and small business owners, developers, and creatives of all kinds depend on Mac to do more than they ever could before. Powered by Apple silicon with its neural engine and privacy built in at the chip level, Macs are simply the best personal computers for AI.

And every Mac we've shipped with Apple silicon since 2020, is capable of taking advantage of Apple Intelligence with Mac OS Sequoia. We also know the importance of security for our users and enterprises so we continue to advance protections across our products.

Turning to iPad, revenue was $7.2 billion, 24% higher year-over-year. During the quarter, we had an incredible launch where we unveiled the all-new 11 and 13 inch iPad Air, the perfect device for education, entertainment, and so much more.

And With the new iPad Pro, we pushed the boundaries of power-efficient performance with the remarkable M4 chip, the engine behind this incredibly thin device. By leveraging the latest in Apple silicon, Video Editors and Musicians can take advantage of the cutting edge AI features in Final Cut Pro and Logic Pro. And we're very excited that iPad Pro and iPad Air models powered by the M series of Apple silicon will be able to utilize the powerful capabilities of Apple Intelligence.

In wearables, home, and accessories, revenue was $8.1 billion, down 2% from a year ago. Apple Watch is empowering users to live a healthier day with a range of tools to take charge of their wellness journeys. At the core of Apple Watch, are powerful AI features that are helping users get help when they need it most, from irregular heart rhythm notifications to walking steadiness to crash detection and fall detection. I've heard time and again how meaningful these features are for users and their loved ones, and their stories motivate us to keep pushing forward on this vital work.

As I mentioned earlier, in services, we set an all-time revenue record of $24.2 billion with paid subscriptions climbing to an all-time high. We achieve revenue records in the majority of the services categories with all-time revenue records in advertising, cloud, and payment services.

Apple TV+ productions are delighting audiences on screens large and small. We're sharing powerful works of imagination with series and movies like Presumed Innocent, the Upcoming Disclaimer, and The Instigators starring Matt Damon. And we can't wait for returning fan favorites with new seasons of The Morning Show, Slow Horses, and Severance.

Apple TV+ productions also continue to earn accolades with nearly 2,300 nominations and 500 wins to-date. That includes 72 Emmy Award nominations across 16 programs our best ever showing for the upcoming awards event. During the quarter, we also expanded Tap to Pay on iPhone to more markets including Japan, Canada, Italy, and Germany, enabling more businesses to use the power of iPhone to accept contactless payments. And we announced new updates to our services coming this fall, including US national park hikes and custom walk routes and Apple Maps, the ability to pay with rewards using Apple Pay, collaborative listening with Apple Music, and a redesigned Apple Fitness+ experience to help users make the most of our library of workouts and meditations.

Turning to retail, we continue to expand in emerging markets with our first ever location in Malaysia. Customers from all over the country came together with our team members to celebrate this special moment. Elsewhere in the world, our teams have been sharing the magic of Apple Vision Pro and demos that delight, inspire, and deeply move customers exploring the wonders of spatial computing for the first time. At the heart of all of our innovations are the values that guide everything we do.

We believe fundamentally that the best technology is technology that works for everyone. And in honor of Global Accessibility Awareness Day, we introduced all new capabilities to give users more ways to take advantage of all our products can do. These include eye tracking for users to control iPhone or iPad visually, music haptics to give those who are deaf or hard of hearing a tangible way to experience music, and vocal shortcuts that tie task to a user's voice. And we are committed as ever to shipping products that offer the highest standards of privacy for our users.

With everything we do, whether it's offering a browser like Safari that prevents third-parties from tracking you across the internet or providing new features like the ability to lock and hide apps, we are determined to keep our users in control of their own data. And we are just as dedicated to ensuring the security of our users' data. That's why we work to minimize the amount of data we collect and work to maximize how much is processed directly on people's devices, a foundational principle that is at the core of all we build, including Apple Intelligence.

And we continue to make significant progress on the environment. We are proud to say that all of our data centers, including those that will run private cloud compute, operate on 100% renewable energy. At Apple, we're constantly accelerating our pace of innovation. We are a company in relentless pursuit of big ideas. Time and again, we've seen how a spark of creativity can reach breakthrough velocity, reach across previously unexplored dimensions, and ultimately take flight in ways that can change the world. It's why we're going to keep investing in the meaningful innovation that enriches the lives of all of our customers. We have a busy time ahead of us, and I couldn't be more excited for all the amazing things yet to come.

With that, I'll turn it over to Luca.

Luca Maestri

Thank you, Tim, and good afternoon, everyone. We are very pleased to report a new June quarter revenue record of $85.8 billion, up 5% year-over-year, despite 230 basis points of negative foreign exchange impact. We achieved growth in the vast majority of our markets, with June quarter revenue records in the Americas, Europe, and rest of Asia Pacific. Products revenue was $61.6 billion, up 2% year-over-year, driven by the launch of the new iPad Pro and iPad Air.

Our installed base of active devices reach an all-time high across all products and geographic segments, thanks to our unmatched levels of customer satisfaction and loyalty and a large number of customers who are new to our products. Services revenue reached an all-time record of $24.2 billion, up 14% year-over-year, with an all-time record in developed markets and a June quarter record in emerging markets.

Company gross margin was 46.3% near the high end of our guidance range and down 30 basis points sequentially driven by a different mix within products which was partially offset by a favorable mix shift towards services and cost savings. Products gross margin was 35.3%, down 130 basis points sequentially, primarily driven by mix, partially offset by favorable costs. Services gross margin was 74% down 60 basis points from last quarter.

Operating expenses of $14.3 billion were at the low end of the guidance range we provided and up 7% year-over-year. Net income was $21.4 billion, diluted EPS of $1.40 was up 11% year-over-year and set a June quarter record. And operating cash flow was very strong at $28.9 billion, also a June quarter record.

Let me get into more detail for each of our revenue categories. iPhone revenue was $39.3 billion, down 1% year-over-year, but grew on a constant currency basis. We set June quarter records across several countries, including the UK, Spain, Poland, Mexico, Indonesia, and the Philippines. And the iPhone Active installed base grew to a new all-time high in total and in every geographic segment.

During the June quarter, many iPhone models were among the top selling smartphones around the world. In fact, according to a survey from Kantar, iPhone was the top selling model in the US, urban China, the UK, Germany, Australia, and Japan. Customer satisfaction on the iPhone 15 family continues to be extremely high, with 451 Research measuring it at 98% in the US in their latest reports.

Mac generated $7 billion in revenue, up 2% year-over-year, driven by the MacBook Air powered by the M3 chip. We saw particularly strong performance in our emerging markets, with June quarter records for Mac in Latin America, India, and South Asia. The Mac installed base reached an all-time high with half of MacBook Air customers in the quarter being new to Mac. And customer satisfaction for Mac was recently reported at 96% in the US. iPad revenue was $7.2 billion, up 24% year-over-year, driven by the launch of the new iPad Pro and iPad Air. Customers are loving the latest iPad lineup for its new design and display, unparalleled performance, AI capabilities and much more.

The iPad install base has continued to grow and is an all-time high, as half of the customers who purchased iPads during the quarter were new to the product. Also, customer satisfaction was recently measured at 97% in the US. Wearables, home and accessories revenue was $8.1 billion, down 2% year-over-year, a sequential acceleration from the March quarter.

Watch and AirPods continue to face a difficult compare against prior year launches of the AirPods Pro second generation, the Watch SE and the first Watch Ultra. Apple Watch continues to attract new customers, with almost two-thirds of customers purchasing an Apple Watch during the quarter being new to the product, sending the Apple Watch install base to a new all-time high. And the latest reports from 451 Research indicate a customer satisfaction of 97% for watch in the US.

In services, total revenue reached an all-time record of $24.2 billion, growing 14% year-over-year. We continue to have great momentum in services, as the growth of our installed base of active devices, sets a strong foundation for the future expansion of our ecosystem. And we see increased customer engagement with our services offerings. Both transacting accounts and paid accounts reach a new all-time high with paid accounts growing double digits year-over-year. Also, paid subscriptions showed strong double digit growth. We have well over 1 billion paid subscriptions across the services on our platform, more than double the number that we had only four years ago.

And we are constantly focused on improving the breadth and quality of our services. From critically acclaimed new content on Apple TV+ to new games on Apple Arcade and the many latest features we previewed during WWDC for iCloud, Apple Pay, Apple Cash, Apple Music, and more. Turning to enterprise, we continue to see businesses, leveraging our entire suite of products to drive productivity and creativity for their teams and customers.

USAA, a leading insurance and financial services company, recently expanded beyond their existing iPhone and iPad deployments to provide their employees with the latest MacBook Air. And American Express has continued to add to their fleet of over 10,000 Macs to enhance their employees' productivity, security, and collaboration. We're also excited to see leading organizations such as Boston Children's Hospital and Lufthansa using Apple Vision Pro to build innovative spatial computing experiences to transform the training of their workforces.

Let me now turn to our cash position and capital return program. We ended the quarter with $153 billion in cash and marketable securities. We repaid $4.3 billion in maturing debt and increased commercial paper by $1 billion, leaving us with total debt of $101 billion. As a result, net cash was $52 billion at the end of the quarter. During the quarter, we returned over $32 billion to shareholders, including $3.9 billion in dividends and equivalents and $26 billion through open market repurchases of 139 million Apple shares.

As we move ahead into the September quarter, I'd like to review our outlook, which includes the types of forward-looking information that Suhasini referred to at the beginning of the call. The color we are providing today assumes that the macroeconomic outlook doesn't worsen from what we are projecting today for the current quarter. We expect foreign exchange to continue to be a headwind and to have a negative impact on revenue of about 1.5 percentage points on a year-over-year basis.

We expect our September quarter total company revenue to grow year-over-year at a rate similar to the June quarter. We expect services revenue to grow double digits at a rate similar to what we reported in the first three quarters of this fiscal year. We expect gross margin to be between 45.5% and 46.5%. We expect OpEx to be between $14.2 billion and $14.4 billion.

We expect OI&E to be around negative $50 million, excluding any potential impact from the mark to market of minority investments, and our tax rate to be around 16.5%. Finally, today our Board of Directors has declared a cash dividend of $0.25 per share of common stock payable on August 15, 2024, to shareholders of record as of August 12, 2024.

With that, let's open the call to questions.

Thank you Luca. We ask that you limit yourself to two questions. Operator, may we have the first question, please?

Question-and-Answer Session

Certainly. We will go ahead and take our first question from Erik Woodring with Morgan Stanley. Please go ahead.

Erik Woodring

Great. Thank you very much for taking my question. Maybe Tim, if we start with you, you know, I thought some of the color you provided before the call about iPhone 15 performing better than the iPhone 14 was interesting. So just with that context, can you maybe help us understand where you see iPhone replacement cycles today, where you think the size of the base of iPhones that are aged and likely to upgrade are, and what that translates to in potential pent-up demand, as we enter a new iPhone cycle. And I have a follow-up, thank you.

Yes, hi Eric. The installed base hit an all-time high during the quarter and so we were very happy about that. iPhone in general grew in constant currency. And the 15, as you point out, if you look at the same number of weeks of the 15 from launch and compare that to the 14, the 15 is doing better than the 14. And so that's kind of a state of where we currently are. In terms of upgrade rates, it's very difficult mid-cycle to call upgrade rates. I would just say that with Apple Intelligence, we are very excited about the level of value that we're going to provide to users. And we believe that -- that presents another reason for a compelling upgrade.

Okay, that's very helpful. Thanks, Tim. And then second, can you maybe dig into the China dynamics a bit? Sales down 6% this quarter, 3% in constant currency, an improvement from last quarter on a tougher compare that came on the back of some iPhone discounting. So can you maybe just share color on the China market as a whole how much you believe promotions helped in the quarter, how sustainable this improvement is, and if this performance really changes any of your approach to the China market as we look forward. Thanks so much.

Yeah, Erik, as you point out, we decreased by 6.5% year-over-year for the whole of Greater China. And if you look at it on a constant currency basis, we declined by less than 3%. So over 50% of the decline year-over-year is currency related. That is an improvement from the first half of the fiscal year, and so we're happy to see the acceleration.

If you look at iPhone in particular for Greater China, the installed base set a record. We also in Mainland China set a June quarter record for upgraders and so that's a very strong signal and in fact from Kantar -- the survey from Kantar this quarter showed that iPhones were the top three models in urban China. Also, if you look at -- one of the things we look at is the 15 family compared to the 14 family for the same number of weeks from launch. So this goes all the way back to the September of 2023. If you look at that, the 15 is outperforming the 14. And so those are some of the color I would provide.

In addition, one of the things that we're very focused on is the level of new customers buying our products. And so if you look at this on the Mac and iPad, in Mainland China, the majority of customers buying or buying for the first time, buying that product for the first time and the watch, the vast, vast majority of people are buying a product for the first time. And during the quarter, I should say also that iPad returned to growth in Greater China, as it did around the world.

And so we continue to be confident in the long-term opportunity in China. I don't know how every chapter of the book reads, but we're very confident in the long-term.

Great. Thanks so much.

Thank you, Erik. Operator, may we have the next question, please?

Our next question is from Ben Reitzes with Melius. Please go ahead.

Ben Reitzes

Hey, thanks a lot. Appreciate it. Hey, Tim, you know, now that you've launched or announced Apple intelligence, do you have any ideas on how it may impact services. Would it – do you feel like it'll accelerate your Services business augmented? And maybe folks will need to buy more storage and some other things. How are you thinking about it as a catalyst for Services into next year? And I have a follow-up. Thanks.

We started the rollout of Apple Intelligence this week with developers, so some of the features are out there as of Monday. And we couldn't be more excited about getting them out there. Obviously, this will enable developers to take their apps to the next level. And so we are taking the first step in getting the beta out there, and we can't wait to see what kind of amazing things they do with it.

Okay. Thanks. And then Luca, with regard to gross margin, it's been -- there's been some component price inflation and mix. Do you mind just giving us a little more color on how you are managing that sequentially and how you feel about the current component environment as an impact on margins? Thanks.

Sure, Ben. I think I'll give you a bit of the walk for the June quarter and then get into the outlook that we provided for the September quarter. At the total company level, we've reported 46.3%. It is down 30 basis points sequentially, and it was really driven by a different mix. Within products, of course, we launched very important products like the iPad during the course of the quarter. But we had an offset from a shift in mix towards Services, and we got some good cost savings. And so when you look at it on a year-over-year basis, we are up significantly on the margin front. And keep in mind that foreign exchange continues to be a bit of a headwind for us.

As we go into the September quarter, we are guiding 45.5% to 46.5%, which is kind of within the guidance that we provided last quarter. Again similar dynamics, we expect a slightly different mix. We expect foreign exchange to have a minimal impact sequentially, although a more significant impact on a year-over-year basis.

On the commodity side, I think that is what you are referring to, yes we have seen some increases on the memory front, but the rest of the commodities, we see a continuous decline. So in general, we feel -- we're well positioned. And as you know well, these are very high levels of gross margin for us and we are pleased where we are.

Okay. Thanks a lot.

Thank you Ben. Operator may we have the next question please.

Our next question is from Mike Ng with Goldman Sachs. Please go ahead.

Hi, good afternoon. I just have two questions. First, I was wondering if you could talk about whether or not you've seen a shift in demand for iPhone 15 Pro, Pro Max models since WWDC that could potentially foreshadow consumer demand for Apple Intelligence enabled phones?

We just announced the sort of the requirements at the system and the silicon level in June. And so we had very limited time during the quarter. So it's really too early to tell.

That's fair. And then with the focus on upgrader potential over the next several years, I was just wondering if you could talk about what you are expecting from the US promotional environment from your channel partners, whether that's US wireless carriers, given the importance of device sales for those partners during an upgrade cycle. Or any retail support on what could be a very strong smartphone upgrade period? Thank you.

We are very excited about Apple Intelligence and what it brings, and it is another compelling reason for an upgrade. I'd leave the promotional question for the sort of the carriers themselves to answer. But I believe it will be a very key time for -- and a compelling upgrade cycle.

Great. Thank you Tim.

Thanks Mike. Operator, can we have the next question please.

Our next question is from Amit Daryanani with Evercore. Please go ahead.

Amit Daryanani

Good afternoon everyone. And I have two as well. I guess, Tim, maybe back to the Apple Intelligence dynamic. There's clearly a lot of excitement from consumers around what Apple Intelligence could mean for them. Can you just touch on your -- do you think the intent is to launch all the Apple Intelligence features at the same time to consumers, or do you think they end up getting staggered a bit? And if they are staggered, do you think it impacts how consumers come out and buy the next-generation iPhone?

The rollout, as we mentioned in June, sort of -- we've actually started with developers this week. We started with some features of Apple Intelligence, not the complete suite. There are other features like languages beyond US English that will happen over the course of the year, and there are other features that will happen over the course of the year. And ChatGPT is integrated by the end of the calendar year. And so yes, so it’s a staggered launch.

Got it. And then I guess your Services growth rates have been extremely impressive for several quarters and it seems like it is accelerated recently. Can you just touch -- talk about when you look at this double-digit growth, how much of that do you think is coming from the installed base growth versus better ARPU or better monetization of the installed base? And how do you kind of see that mix changing as you go forward?

Yes, Amit, it is Luca. It's a combination of a number of factors. The installed base growth is very important of course, because we have a larger pool of customers that uses the ecosystem and uses our Services. We are seeing and we've seen this consistently for many, many quarters now. We see continued growth in the level of engagement that our customers have with our ecosystem.

We have more transacting accounts every quarter, so more people using the ecosystem both the free elements of the ecosystem and the paid elements. We see paid accounts growing double digits, and we've seen that for many, many quarters. Now we look at our paid subscriptions on our platform, and they are growing strong double digits as well. So obviously, the growing level of engagement helps us both from an ARPU standpoint and just a volume standpoint.

Obviously, as you've seen over the last several years, we launched new services over time, and we've launched many new services, fairly recently. Obviously, our payments business is relatively new, Apple TV+, Apple Arcade, Fitness+, so many other services we've added. And so we are providing more and more opportunities for our customers to interact with the ecosystem. And we believe we are doing also a very good job at improving the quality of these services and improving the amount of content that we make available. We continue to make significant investments on TV+, on Apple Arcade. We are launching new shows, new games all the time.

And I think you will continue to see that as we go forward. We are very, very happy with the 14% growth that we had this quarter because, particularly if you look at the performance that we had in Services a year ago, the compares for us tend to get a bit more challenging in the second half of our fiscal year. But in spite of that, we delivered a level of growth that was better than what we were expecting at the beginning of the quarter.

Thanks Amit. Operator we will take the next question please.

Our next question is from Wamsi Mohan with Bank of America. Please go ahead.

Wamsi Mohan

Yes. Thank you so much. Tim, you announced Apple Intelligence, but you also announced partnerships with OpenAI and presumably more coming down the road. How should investors think about the monetization models around these partnerships where the CapEx investments are clearly being made by these potential partners. But you're obviously -- they're leveraging your distribution to your very attractive installed base. So in the long-term, do you see the Apple Intelligence part -- the Services growth from Apple Intelligence being the larger contributor over time? Or do you see these partnerships becoming a larger contributor over time? And I have a follow-up.

I think the way that I look at it is that Apple Intelligence is the on-device processing and the Private Cloud Compute. And a lot of that will be things with a personal context. And then for world knowledge, we are integrating with ChatGPT initially, and that will be focused on world knowledge as I said. And so the monetization model, I don't want to get into the terms of the commercial agreements because they are confidential between the parties. But I see both aspects as being very important. People want both.

Okay. Thanks. As a follow-up maybe for Luca. Just stepping back to the gross margin discussion again. If I look at calendar 2023, you had on average 150 basis points increase in product gross margins on a year-on-year basis. In 2024 so far, it had been more flat year-on-year. When we think about that, is the incremental headwind, I mean there was FX headwinds throughout the last several years. So ex-FX, are there other incremental headwinds that are either temporary or structural in nature that are perhaps limiting further upside to what are obviously very strong gross margins? Thank you.

Yes. Of course, as you said, the foreign exchange continues to be -- this is incremental on a year-over-year basis. And it is one of those things that is outside of our control. We try to hedge our exposures. But it is what it is. We know that when the dollar is strong, our gross margins are affected. The other element that I think it's always important to keep in mind is that within the Products business, our products have different margin profiles. And depending on the relative success in the marketplace, our products' gross margin tends to move.

And so the mix of our products has an impact on gross margins, right? And so we need to pay attention to that. Of course, we just launched an iPad and that is one of the factors. But we want all our products to be very successful in the marketplace. And that's why we always look at gross margin dollars as the first order of priority, and gross margin percentage tends to follow from that. The other factor that obviously has an impact, a significant impact is the state of the commodity markets, and they tend to go in cycles. And so we will see how that plays out over time. But in general, we feel good about the level of gross margins that we have for our products business, and we think we are in a good position there.

Thanks Wamsi. Operator, can we have the next question please.

Our next question is from Krish Sankar with TD Cowen. Please go ahead.

Krish Sankar

Hi, thanks for taking my question. And congrats on the strong results. The first one for Luca or Tim. We keep hearing about these increasing silicon content for AI edge devices. And also, I think, Luca you spoke about increasing commodity costs. So I'm curious how to think about margins for these new AI devices. And Tim, do any of these Apple Intelligence features need more hardware updates than what we have today? And then I have a quick follow-up.

Maybe I'll take the second one first and then pass it over to Luca. In terms of the requirements to run Apple Intelligence, there are system requirements and there are silicon requirements. And so from an iPhone point of view, the iPhone 15 Pro and Pro Max will run Apple Intelligence and the successor products obviously.

If you look at the Mac, it starts with the M series of silicon that started in 2020. And the iPad is the same, and so it starts with the M series of silicon. And so there are system requirements and silicon requirements that go with each of those.

And from a gross margin standpoint, as you know, we don't provide any color past the current quarter, and we just provided guidance for the quarter 45.5% to 46.5%. It is essentially broadly in line with what we reported for the June quarter. So we'll take it quarter by quarter and we will report as the time goes by.

Got it. Very helpful. And then a quick follow-up for Tim. Thanks for the color on China. We also see many other consumer discretionary and luxury brands talk about a weak China. And I think Tim, you said half the details was FX related. I'm curious, the other half of the weakness, was that more China macro related or do you think it is kind of like specific to Apple with domestic competitors? Any other color you could give would be very helpful. Thank you very much.

Well, certainly, the competitive environment there is the most competitive in the world. I've said that before and that remains to be the case. The macroeconomic factors have been in the press too, and I'm not an expert on those. I can only tell you what we're seeing. And we were pleased that the business showed improvement from the first half of the year.

Thanks Tim.

Thank you Krish. Operator, can we have the next question please.

Our next question is from David Vogt with UBS. Please go ahead.

Great. Two, if I may also. Tim, first one for you. I know it is early days, and you talked about the developers just getting their hands on Apple Intelligence. But when you think about the categories that are currently in the App Store and kind of what you think app developers could do with this new technology, what's your instinct say in terms of -- are these going to be iterative applications to currently available applications? Is there any sort of category that you think lends itself more naturally to Apple Intelligence? Is it games? Is it more creative? I'm just trying to get a sense of how you're thinking about it. And then I have a follow-up for Luca. Thanks.

If you look at how we've deployed Apple Intelligence or are deploying Apple Intelligence, we've really thought about it at pretty much all of the apps that you use every day. And so we've thought about it from Notes to Mail to Messages and all the rest. And so there is been a deep level of thinking about how it affects those apps. And that's going to surface Apple Intelligence in a way that is natural to the user, in a way that will I think, get them very excited about it and get usage.

Similarly, I think the developers will do that on a broad basis with their apps as well. And so I think, it is profound and we'll see what the developers do. But we're very excited to get the initial seed out there this week and see what they do. I think it will be amazing, yes.

Yes. No, that's helpful. I appreciate it. And Luca, just maybe -- I know you didn't give a full rundown of product categories in your prepared remarks. But if I kind of take your comments at face value, I guess what I'm trying to think about is for the next quarter, it sounds like with Services being relatively strong and FX easing a little bit. You are effectively saying that product revenue in the September quarter is going to basically be flat with the September quarter last year ahead of a product launch. And so I'm just trying to get a sense for, what are the puts and takes in that sort of outlook particularly as you have Apple Intelligence hopefully stoking the fire for demand going forward? Thanks.

Well, we have provided -- let me repeat what we provided. We think that we are going to be growing total company revenue at a rate that is similar to what we reported, so the plus 5%, right? In spite of the fact that we are going to have some foreign exchange headwinds, and we said about 150 basis points in the December quarter. And we said that we will grow Services double digits at a rate that is similar to what we've reported for the first three quarters of the fiscal year.

We are not going into the other categories. I think there is a lot of good math that you can do from what we've given you here. Keep in mind on the Mac that we will have a challenging compare from a year ago, given the fact that we launched and we had the full quarter impact of the launch of the MacBook Air 15-inch a year ago. And also on the iPad, we reported 24% growth in the June quarter. Clearly we had the benefit from the launch in the June quarter of the new products, the iPad Air and the iPad Pro. So important to keep that in mind on a sequential basis.

Great. Thank you very much.

Thank you David. Operator may we have the next question please.

Our next question is from Atif Malik with Citi. Please go ahead.

Hi, thank you for taking my question. The first one is for Tim. I know it's early days. The feedback on Apple Intelligence software features like notification summary and reduced interruption focus from the developers who have tried the iOS 18.1 beta version this week is very positive. My question is in response to an earlier question, you talked about a staggered launch on some of these software features. So are you expecting most of the features that you announced at WWDC to be part of iOS 18? Or we should be thinking that some of these features could potentially be part of iOS 19 next year?

Our objective that we said in June is to roll out US English starting in the fall and that is to users, and then proceed with more functionality, more features, if you will, and more languages and regions coverage as we proceed across the next year. And so we sort of gave a time frame that -- and we're tracking to that.

Understand. And the next one for Luca. Luca the Services growth momentum seems very strong. Are you seeing any impact from changes made to comply with the DMA rules?

Well, as you know we have introduced some changes to the way we run the App Store in Europe already in March. And we are seeing a good level of adoption from developers on those changes. We are on an ongoing basis, discussing with the European Commission how to ensure full compliance with the DMA. It is obviously early stage, but in general, our results for the Services business and for the App Store have been pretty good until now. Again to just provide you a frame of reference, the percentage of revenue that we generate from the European Union on the App Store is about 7% of the total.

Very helpful. Thank you.

Thank you Atif. Operator may we have the next question please.

Our next question is from Samik Chatterjee with JPMorgan. Please go ahead.

Samik Chatterjee

Yes. Hi. Thanks for taking my question. I guess, Tim, if I can just ask you about Apple Intelligence as well. There is a regulatory aspect as well in certain geographies. You mentioned the staggered launch that you are aiming for and the timelines you're thinking. How are you thinking about the complexity of the regulatory process, in particular like EU and maybe China? And does -- in terms of your timelines of the rollout, are you sort of embedding in the regulatory aspect here? And how should we think about timing then including that? And I have a follow-up. Thank you.

We are engaged as you would guess, with both regulatory bodies that you mentioned. And our objective is to move as fast as we can, obviously because our objective is always to get features out there for everyone. We have to understand the regulatory requirements before we can commit to doing that and commit a schedule to doing that. But we're very constructively engaged with both.

Okay, got it. And a quick one on the Wearables category, Luca. I know you mentioned the acceleration there on a sequential basis. Maybe you can just sort of parse that out in terms of what -- which categories drove the acceleration because that's been a category that has been lagging a bit in terms of revenue trends for the past couple of quarters. So just curious what is starting to sort of drive it to accelerate on a sequential basis? Thank you.

Yes, I'll take that one. I think the important thing to remember when you look at the Wearables, Home and Accessories categories is that we have a difficult launch compare. And we've been running that for a few quarters and we still have that because last year had the continued benefit from the AirPods Pro second generation, the Watch SE and the very first Watch Ultra. And so it is important to keep that in mind. If you sort of take a step back, however and look at the business across the trailing 12 months, it is grown -- the Wearables, Home and Accessories business has grown to almost $40 billion, which is double what it was five years ago.

Thank you Samik. Operator, may we have the last question please.

Our last question is from Richard Kramer with Arete Research. Please go ahead.

Richard Kramer

Thanks. Thanks very much. Tim, you referenced the investment in innovation, and your R&D sales ratio reached what I think was a June quarter record even before launching Apple Intelligence. Do you see the rollout of these features requiring further increases in R&D or increases in OpEx or CapEx for cloud compute capacity? And is it even possible to forecast the Services usage as they roll out, given that they are so new for consumers? Thanks.

Clearly, we have increased R&D over time. We have been investing in AI and ML for years. And in addition to investing more, we've also redeployed certain skills onto AI and ML. And so the growth in sort of embedded in our numbers that we've shared here, it is increasing year-over-year.

On the CapEx part, it is important to remember that we employ a hybrid kind of approach, where we do things internally and we have certain partners that we do business with externally where the CapEx would appear in their respective businesses. But yes, I mean you can expect that there is -- we will continue to invest and increase it year-on-year.

Okay. And maybe a quick follow-up for Luca. When we look at the free cash flow margins for the first nine months, they are up materially. And given this year's product mix, can you describe to us what exactly in the Services mix or cost control is driving what seems to be structurally higher free cash flow margins across the business?

Yes, I'm glad you noticed that. We are pretty pleased with that fact. And I think you probably also noticed that we've increased our return of capital to shareholders this quarter. This one was a record quarter for us. Well, it's a combination of a number of things. Of course, an improvement in the top-line helps the margin expansion that we've had over the last several years and several quarters obviously has helped. And so that is driving better operating cash flow.

On the CapEx front as Tim said, we employ a hybrid model. Some of the investments show up on our balance sheet and some other investments show up somewhere else and we pay, as we go. But in general, we try to run the company efficiently. We continue to think that capital efficiency is a good thing. And therefore, we are pleased with the fact that our free cash flow is doing well this year.

Okay. Thanks.

Thank you, Richard. A replay of today's call will be available for two weeks on Apple Podcasts, as a webcast on apple.com/investor, and via telephone. The number for the telephone replay is (866)-583-1035. Please enter confirmation code 1969407 followed by the pound sign. These replays will be available by approximately 5 p.m. Pacific Time today. Members of the press with additional questions can contact Josh Rosenstock at (408)-862-1142. And financial analysts can contact me, Suhasini Chandramouli with additional questions at (408)-974-3123. Thank you again for joining us today.

Once again this does conclude today's conference. We do appreciate your participation.

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Apple Reports 3Q 2024 Results: $21.4B Profit on $85.8B Revenue

Apple today announced financial results for its third fiscal quarter of 2024, which corresponds to the second calendar quarter of the year.

Apple set new June quarter records for both revenue and earnings per share, while the Services category set an all-time revenue record. The iPad category also saw a notable increase in revenue thanks to the introduction of new iPad Pro and iPad Air models.

Gross margin for the quarter was 46.3 percent, compared to 44.5 percent in the year-ago quarter. Apple also declared a quarterly dividend payment of $0.25 per share, payable on August 15 to shareholders of record as of August 12.

"Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago," said Tim Cook, Apple's CEO. "During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers' lives, while leading with the values that drive our work."

As has been the case for over four years now, Apple is once again not issuing guidance for the current quarter ending in September.

Conference call recap ahead... 1:41 pm : After declining over 1.5% in regular trading today, Apple's stock is currently up over 1% in after-hours trading following the earnings release.

1:45 pm : Apple CEO Luca Maestri notes that Apple generated nearly $29 billion in operating cash flow and returned over $32 billion to shareholders during the quarter, while the company's installed base of active devices hit all-time highs in all geographic segments.

1:47 pm : On a year-over-year basis, Apple's iPhone revenue was down 1.0%, Mac revenue was up 2.5%, ‌iPad‌ revenue was up 23.7%, Wearables revenue was down 2.3%, and Services revenue was up 14.1%

1:56 pm : Apple's quarterly earnings call with analysts should begin at the top of the hour. Expected on the call are CEO Tim Cook and CFO Luca Maestri.

2:01 pm : The call is beginning with the usual warning about forward-looking financial statements. Tim and Luca are indeed on the call, beginning with opening statements.

2:02 pm : "Apple assumes no obligation to update any forward looking statements, which speak only as of the date they are made."

2:02 pm : Tim is on.

2:02 pm : Apple reports a June quarter revenue record of $85.8 billion, up 5% from a year ago, and better than Apple had expected. EPS grew double-digits to $1.40, a record for the June quarter. Set quarterly revenue records in more than two dozen countries and regions, including Canada, Mexico, France, Germany, the UK, India. Indonesia, the Philippines and Thailand.

2:03 pm : Services revenue set a new all-time record, up 14%.

2:03 pm : Tim is going over the announcements from WWDC, in particular Apple Intelligence.

2:04 pm : "We are very excited about Apple, intelligence, and we remain incredibly optimistic about the extraordinary possibilities of AI, and its ability to enrich customers lives."

2:05 pm : Now he's talking up Apple Vision Pro , noting 2,500 native spatial apps and new immersive content coming to Vision Pro. "And we've seen great interest for Vision Pro in the enterprise where it can empower companies large and small to pursue their best ideas like never before."

2:06 pm : Now ‌iPhone‌, revenue was $39.3 billion, down 1% year over year. On a constant currency basis, ‌iPhone‌ sales grew compared to 2023.

2:07 pm : Moving to Mac, revenue was $7 billion, up 2% from a year ago. He's mentioning the M3-powered MacBook Air 's as the best computer for students and others. In particular, he notes Apple Intelligence running on M3, in particular safety and privacy.

2:08 pm : ‌iPad‌ revenue was $7.2 billion, 20% higher year over year, on the back of the new 11- and 13-inch ‌iPad Air‌, as well as the new ‌iPad Pro‌.

2:08 pm : ‌iPad Pro‌ and ‌iPad Air‌ models, powered by the M series of Apple Silicon , will be able to use Apple Intelligence, he notes.

2:09 pm : In Wearables, Home and Accessories, revenue was $8.1 billion, down 2% from last year. This category includes Apple Watch, AirPods, HomePods and the ‌Apple Vision Pro‌.

2:09 pm : In Services, Apple set an all-time revenue record of $24.2 billion, with paid subs rising to an all-time high. Set new records in advertising, cloud, and payment services.

2:11 pm : Tap to Pay on ‌iPhone‌ expanded to more markets, including Canada, Italy, and more. New updates to Services are coming this fall, including National Park hikes to Apple Maps .

2:13 pm : Tim is talking up Apple's focus on privacy, security, accessibility, and more. "We are determined to keep users in control of their data. And we are just as dedicated to ensuring the security of our user's data."

2:13 pm : All of Apple's data centers, including those using cloud compuete, operate on 100% renewable energy.

2:14 pm : Now Luca is on to discuss the financials in more detail.

2:16 pm : There was a new record of $85.8 billion, up 5% year over year, despite 230 basis points of negative foreign exchange impact. Products revenue was $61.6 billion, up 2% year over year. The install base of active devices reached an all-time high across all products and geographic segments.

Services revenue reached a new record, with an all-time record in developed markets and a June quarter record in emerging markets. Gross margin was 46.3%, at the high end of its guidance range. Products gross margin was 35.3%, down 130 basis points. Services gross margin was 74%, down 60 basis points from last quarter.

OpEx of $14.3 billion, up 7% year over year. Net income was $21.4 billion, diluted EPS of $1.40 (up 11% and a June quarter record). Operating cash flow was $28.9 billion, also a June quarter record.

2:16 pm : ‌iPhone‌ revenue was $39.3 billion, down 1% YoY, but growing on a constant currency basis. "We set June quarter records across several countries, including the UK, Spain and In Poland, Mexico, Indonesia and the Philippines, and the ‌iPhone‌ active install base to a new all time high. In total, and in every geographic segment."

2:17 pm : "According to a survey from Cantar ‌iPhone‌ was the top selling model. In the US, urban China, the UK, Germany, Australia and Japan. Customer satisfaction on the iPhone 15 family continues to be extremely high, with 451 Research measuring it at 98% in percent in the US in their latest reports."

2:18 pm : "The Mac installed base reached an all time high, with half of ‌MacBook Air‌ customers in the quarter new to Mac. Customer satisfaction for Mac was recently reported at 96% In the US."

2:19 pm : Almost two thirds of customers buying an Apple Watch in the quarter were new to the product. Customer sat of 97% for Watch in the US.

2:20 pm : The growth of the install base of active devices "sets a strong foundation for the future expansion of our ecosystem." Transacting and paid accounts continue to show strong double digit growth. There are more than 1 billion paid subscriptions across the platforms, more than double that of four years ago.

2:21 pm : "We continue to see businesses leveraging our entire suite of products to drive productivity and creativity for their teams and customers. USAA, a leading insurance and financial services company, recently expanded beyond their existing ‌iPhone‌ and ‌iPad‌ deployments to provide their employees the latest ‌MacBook Air‌ and American Express has continued to add to their fleet of over 10,000 Macs to enhance their employees' productivity."

2:22 pm : Apple entered the quarter with $153 billion in cash and marketable securities. It repaid $4.3 billion in maturing debt and increased commercial paper by $1 billion, leaving total debt of $101 billion. Net cash was $52 billion after returning $32 billion to shareholders between dividends and open market repurchases of $26 billion across 139 million AAPL shares.

2:23 pm : Foreign exchange will continue being a headwind, affecting 1.5 percentage points year over ear. September quarter revenue is expected to grow at a rate similar to June, with Services revenue growing double digits at a similar rate to the first three quarters of the year. Gross margin between 45.5 and 46.5%, OpEx between $14.2 and $14.4 billion, and a tax rate of around 16.5%. The board declared a cash dividend of $0.25/share later in August.

2:23 pm : The Q&A session is beginning.

2:25 pm : Q: Can you help us understand where you see ‌iPhone‌ replacement cycles today, where you think the size of the base of iPhones that are aged and likely to upgrade are and what that translates to, and potential pent up demand as we enter a new ‌iPhone‌ cycle?

A: The install base hit an all time high during the quarter, and so we were very happy about that ‌iPhone‌ in general, it grew in constant currency. And the 15, as you point out, if you look at the same number of weeks of the 15 from launch and compare that to the 14, the 15 is doing better than the 14. And so that's kind of a state of of where we currently are.

In terms of upgrade rates, it's very difficult mid cycle to call upgrade rates. With Apple intelligence, we're very excited and about the level of value that we're going to provide to users and we believe that that presents another reason for a compelling upgrade.

2:28 pm : Q: Can you dig into China dynamics a bit, sales down 6% this quarter, 3% in content currency, an improvement from last quarter on a tougher compare. You know that came on the back of some ‌iPhone‌ discounting. So can you share color on the China market as a whole? How much do you believe promotions helped in the quarter, how sustainable this improvement is, and if this performance really changes any of your approach to the China market, as we look forward?

A: This quarter was an improvement from the first half of the year. If you look at ‌iPhone‌, in particular, for Greater China, the install base set a record. We also, in mainland China, set a June quarter record for upgraders. And so, that that's a very strong signal. iPhones were the top three models in Urban China.

One of the things we look at is the 15 family compared to the 14 family for the same number of weeks from launch. So this goes all the way back to the September of '23 if you if you look at that, the 15 is outperforming the 14. In addition, one of the things that we're very focused on is the level of new customers buying the our products. And so if you look at this on the Mac and ‌iPad‌ in mainland China, the majority of customers are buying for the first time. We're very confident in the long term.

2:29 pm : Q: Now that you've launched Apple Intelligence, will it accelerate Services and augment it, maybe folks need to buy more storage, how is it a catalyst for Services in the next year?

A: We started the rollout of Apple Intelligence this week. Some of the features are out there as of Monday. We couldn't be more excited about getting them out there. This will enable developers to take their apps to the next level, we're taking this first step in getting the beta out there and we're excited to see what they do with it.

2:32 pm : Q: Have you seen a shift in demand for iPhone 15 Pro and Pro Max models that could potentially foreshadow consumer demand for Apple Intelligence-enabled phones?

A: We just announced the requirements for the system and the Silicon level in June, and we had limited time in the quarter so it's really too early to tell.

2:33 pm : Q: With the focus on upgrader potential for the next few years, what are you expecting for the US promotional environment from your channel partners given the importance of device sales for those partners during an upgrade cycle?

A: We are very excited about Apple Intelligence and what it brings and it's another compelling reason for an upgrade. I think the promotional questions are for the carriers themselves to answer, but I think it will be a key time for a compelling upgrade cycle.

2:35 pm : Q: Is the intent to launch Apple Intelligence at the same time to consumers or will it get staggered? How could it affect how consumers buy during the rollout?

A: We started with some features this week, but not the complete suite. There are some languages beyond US English that will happen over the course of the year, and other features. ChatGPT will be integrated by the end of the calendar year. It is a staggered launch.

2:37 pm : Q: Services growth rate has been extremely impressive for several quarters. How much is coming from installed base growth versus better monetization of the existing base? How do you see that going forward?

A: Combination of a number of factors, install base growth is very important, because we have more customers. We are seeing this consistently for many quarters, we see continued growth in the level of engagement that our customers have with our ecosystem, we have more transacting accounts every quarter, more people using the ecosystem, both free and paid elements. We see paid accounts growing double digits for many quarters now. Our paid subscriptions on our platform are growing strong double digits as well. Obviously, the growing level of engagement helps us both from an ARPU standpoint and a volume standpoint.

As you've seen over the last several years, we launch new services and we've launched many new services fairly recently. Payments, Apple TV+ , Apple Arcade , Fitness+, we're providing more opportunities for customers to interact with the ecosystem. And we've done a good job improving the quality of these services. Launching new shows and new games all the time and I think you will continue to see that going forward. Very happy with the 14% growth that we had this quarter.

If you look at performance of Services a year ago, it got a little more challenging in the second half of the fiscal year, but in spite of that we delivered a level of growth better than we were expecting.

2:39 pm : Q: You announced Apple Intelligence but also announced partnerships with OpenAI and other partners down the road. How should we think about monetization of models like these and these partnerships? The CapEx investments are being made by these potential partners, but you're leveraging your distribution. Do you see the Services growth from Apple Intelligence being the larger contributor or these partnerships over time?

A: The way I look at it, Apple Intelligence is the on-device processing and private cloud compute. A lot of that will be things with a personal context, and then for world knowledge, we are integrating with ChatGPT initially and that will be focused on world knowledge. The monetization model, I don't want to get into the terms of the commercial agreements because they're confidential, but I see both aspects as being very important. People want both.

2:42 pm : Q: You had margin growth over the last several years and a bit more flat. Are there other headwinds besides FX that are limiting upside perhaps?

A: Foreign exchange is incremental on a year over year basis and is outside our control, we try to hedge but it is what it is. When the dollar is strong our margins are affected. Within the products business, our products have different margin profiles and depending on their relative success in the marketplace, our product gross margin tends to move. The mix of our products has an impact on gross margin. We just launched an ‌iPad‌ so that's one of the factors. We want all our products to be successful, so we always look at gross margin dollars as first priority and percentage follows from that.

Also we have the state of the commodity markets and this tends to go in cycles, so we'll see how that plays out over time. We feel good about the level of gross margin we have for our products business. We feel in a good position there.

2:44 pm : Q: We keep hearing about this increase in silicon content for AI edge devices, Luca you talk about increasing commodity costs, how should we think about margins for new AI devices, and do any Apple Intelligence features need more hardware than we have today?

A: In terms of the requirements to run Apple Intelligence, there are system requirements and there are silicon requirements, so from an ‌iPhone‌ point of view, the ‌iPhone 15 Pro‌ and Pro Max will run Apple Intelligence and the successor products. If you look at the Mac, it starts with the M-series of silicon that started in 2020, and the ‌iPad‌ is the same. The M series of silicon. There are system requirements and silicon requirements that go with each of those.

From a gross margin standpoint, we don't provide any color for the quarter, 45.5-46.5, essentially broadly in line with what we recorded for the June quarter.

2:45 pm : Q: On China, was the weakness macro related or related to Apple or domestic competitors?

A: The competitive environment is the most competitive in the world and that remains the case. The macro economic factors have been in the press too, I'm not an expert on those, I can only tell you what we're seeing. We were pleased that the business showed improvement from the first half of the year.

2:47 pm : Q: Developers are just getting their hands on Apple Intelligence, are these going to be iterative applications, is there some category that lends itself more naturally to Apple Intelligence, games, more creative, trying to get a sense...

A: If you look at how we've deployed Apple Intelligence, we've thought about it as all of the apps you use every day. Notes, Mail, Messages and all the rest. There's been a deep level of thinking about how it affects those apps. That's going to surface Apple Intelligence in a way that is natural to the user and in a way that will get them very excited about it.

Similarly, I think the developers will do that on a broad basis with their apps as well. I think it's profound, and we'll see what the developers do. We're excited to get the initial seed out there this week and see what they do. I think it will be amazing.

2:49 pm : Q: It sounds like, with Services being strong and FX easing, you're saying product revenue might be flat with the quarter next year. What are the puts and takes in that outlook with Apple Intelligence stoking demand going forward?

A: We have provided... we think we'll be growing company revenue at a state that is similar to what we reported. 5%, in spite of the fact that we'll have 150 bp of FX headwinds in the December quarter. We said that we'll grow Services double digits at a rate similar to the first three quarters of the fiscal year. We are not going into the other categories, there's a lot of good math that you can do from what we've given you. Keep in mind, on Mac we'll have a challenging compare from a year ago given that we had a full-quarter impact of the ‌MacBook Air‌ 15-inch a year ago, and ‌iPad‌ we had the benefit from the launch of the new ‌iPad Air‌ and ‌iPad Pro‌ this past quarter so keep that in mind on a sequential basis.

2:50 pm : Q: You mentioned a staggered launch of Apple Intelligence, are all of these going to be a part of iOS 18 or will some potentially be part of iOS 19 next year?

A: We'll start with US English this fall and add more functionality, features, and languages and regions coverage over the next year. We gave a time frame and we're tracking to that.

2:52 pm : Q: Are you seeing any impact from changes made to the European app store rules?

A: We have seen a good level of adoption from developers on those changes, we are in ongoing discussions with the European Commission on how to ensure full compliance with the DMA. In general, our results for the Services business and the App Store have been pretty good. To provide a frame of reference, the percentage of revenue we get from the EU on the ‌App Store‌ is about 7% of the total.

2:53 pm : Q: Re Apple Intelligence, how do you think about the regulatory process in the EU and China, thinking about the rollout, are you embedding the regulartory aspect in it and how should we think about timing?

A: We are engaging with the regulatory bodies and we're moving as fast as we can. Our objective is always to get features out there for everyone. We have to understand the regulatory requirements before we can commit to doing that but we're engaged with both.

2:54 pm : Q: On Wearables, it's been lagging there for the last couple of quarters. Any comment on that?

A: When you look at Wearables, Home and Accessories, we have a difficult launch compare. Last year we had the continued benefit of the AirPods Pro , the Watch SE, and the first Watch Ultra. It's important to keep that in mind. If you take a step back and look at the business across the trailing 12 months, the Wearables business has grown to almost $40 billion, double what it was five years ago.

2:56 pm : Q: You referenced the investment in innovation, R&D to sales ratio reached a record even before launching Apple Intelligence. How should we think about CapEx for cloud compute capacity and is it possible to forecast services usage as these things roll out?

A: We've increased R&D over time, we've been investing in AI and ML for years. We've redeployed certain skills onto AI and ML, and the growth is sort of embedded in our numbers that we've shared. On CapEx, remember that we employ a hybrid approach where we do things internally and we have partners that we do business with externally where the CapEx would appear in their respective businesses. Yes, you can expect that we will continue to invest and increase it year on year.

2:58 pm : Q: When we look at the free cash flow margins for the first nine months, they're up materially. What, in the services mix or cost controls, what is driving structural higher free cash flow margins across the business?

A: I'm glad you noticed that. We're pretty pleased with that fact. We also increased our return to shareholders, a record quarter for us. An improvement in the topline helps, margin expansion that we've had over the last several years and quarters has helped. That is driving better operating cash flow. On the CapEx front, as Tim said, we employ a hybrid model. Some investments show up on our balance sheet, other investments show up somewhere else and we pay as we go. In general, we try to run the company efficiently. We think capital efficiency is a good thing. We're pleased that our free cash flow is doing well this year.

2:59 pm : The call has completed. Expect the next quarterly earnings call in late October.

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