There has been ongoing concern when it comes to Apple in China. Is that the key takeaway for you? Well, the key takeaway for me as someone who's optimistic that these Apple intelligence features are going to accelerate revenue growth, and I have much more ambitious expectations for the next year and two years. One of the big takeaways for me is the guidance kind of threw cold water on this 20% kind of outside hope that we'd start to see some better acceleration in the December quarter. As you mentioned, the low single-digit guide, the street was at 7%. So probably analysts are going to shake out somewhere between 5 to 6% similar growth rates we just saw in the September quarter. And so from my perspective, the big takeaway here is that the street was right, that this is going to take some time, a few quarters before we start to see this acceleration in growth. And I think the guidance just confirmed

that. And then just to dive into the China question, I previewed this and said they've got to they have to have China growth in the quarter. I think it was actually like up like 0.5%. I mean, it was fractional comps were really easy. They should have been up five, 6% or the street was out. So I think there's something else going on in China. Jeanne, it's a fair question of where that future growth will come from. Right. And that's great because we can talk about technology. You've been using Apple intelligence in its early form. And when you think about China, there was some evidence, albeit third party data evidence, that the consumer in China might be buying iPhone 16 in the hope that in the future the platform would be available there because, of course, it's not now, the regulator won't allow it. How would you modeling that? Well, the timing of when some first have

been using the features, and I would describe the features as nice to have but not need to have yet. I mean, they do a great job of consolidating my messages and notifications. I think that as far as kind of the, you know, how this plays out, the geographic piece is really important. It's just going to be additional English countries for the rest of this year. And so that's going to be like the UK, Canada, Australia. But then we still have this answer question about when does Europe start going? And then China, of course, it's probably they're going to have to do some sort of partnership with Baidu to get there. And so for this cycle to really be a super cycle, there's like these geopolitical things that need to fall into place. And ultimately, I believe that they will fall into place. I think Apple's got clout to make those things happen. And then additionally, even though I

describe the features as nice to have, not need to have. I just want to quickly frame in why I believe these will be need to have, starting kind of first quarter of next year, once they start integrating more of the functionality, but also open up more of this with developers. We get a gentle guy. There is optimism that, therefore, eventually that Apple intelligence will bear fruits. What is bearing fruits right here, right now, is the services side, but that's under duress from a regulatory perspective. If we're thinking about the App Store, for example, how do you think about regulation in. It's the Black Swan potential negative event here is that services growth at 12%, The shoes at 13, call it a wash. But no, I think that this came up on the Apple call last night. It came up on the Google call two nights ago. I think services continues to do well because their base keeps growing.

hitting record highs. But I think that, you know, there's still this piece out there, and I would put a low probability of ten, 15% that something happens between the relationship between Google and Apple on that, that the search placement deal with Safari, and that's probably 10 to 15% of their income. So I think that there's a, that's something else I'm focused on.

Apple’s Tepid Forecast, China Weakness Spark Concern

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