Margin Tailwinds from Tariff Refunds and Mix
Products gross margin jumped 5.6 percentage points year-over-year, driven by a favorable product mix and tariff refunds recognized as a reduction of cost of sales, though partially offset by higher memory costs.
R&D Spending Surges on AI Investments
R&D expense rose 32% to $11.7 billion, primarily due to higher infrastructure costs for artificial intelligence and increased headcount, underscoring Apple's commitment to AI.
New Product Introductions: Siri AI and OS Updates
Apple announced iOS 27, macOS 27 Golden Gate, iPadOS 27, watchOS 27, visionOS 27, and tvOS 27, and introduced Siri AI, signaling upcoming product innovations.