A 22% jump in iPhone sales, combined with record spring quarter Mac revenue, helped drive the results. That debate has intensified after Chinese AI company Moonshot launched Kimi K3, a new model that has drawn attention for performance that rivals some of the most powerful systems from Anthropic and OpenAI. China remains another critical part of Apple's AI strategy and its broader business. Apple Intelligence has finally been approved in China after a delay of nearly two years compared with its U.S. launch. "As I'd mentioned on the call last time around, the memory costs were higher in March than December quarter, and then in June they were significantly higher than in the March quarter," Cook said.