Jensen Huang

Were you surprised by the overall sales growth when many thought that iPhone 17 wasn't going to be the catalyst that we'd hoped for?

I wasn't, and the reason is because, as I talked to you in the past, hardware refresh, when the actual hardware looks different, always drive upgrades.

People still want to rely on the device that is in their pocket 24-7, but make it look different.

And this year, we got that with the Air.

which is not the main seller for Apple, but it doesn't matter, is getting people back in the stores to see the rest of the portfolio.

It was really interesting yesterday that Cook mentioned that supply issues on the 16 model, not just on the 17.

And that is a good reminder that a new model every September brings people back in stores and upgrade to previous models as well.

It's not just the latest.

It's the portfolio with maybe some price adjustment and some carrier promotions that drive that upgrade.

Fewer upgrades going on in China, though.

What did you make of the pullback, the surprising pullback in that particular region?

I think part of it is the economic situation in China.

We have seen kind of hot and cold from a consumer perspective.

The timing was later in the quarter.

So it takes a little bit longer from a supply chain perspective.

We also need to remember the supply chain has moved away from China.

So there is some adjustment to make as well because of the U.S.

and the

production shifting to India.

But the most important thing is what Tim Cook said, which is signals towards the end of the quarter was positive.