June Quarter Expectations

22% EPS growth is implied.

We expect our June quarter total company revenue to grow by 14%-17% year-over-year, which comprehends our best view of constrained supply. On iPad, keep in mind, we face a difficult compare driven by the launch of the A16-powered iPad in the prior year. We expect services revenue to grow at a year-over-year rate similar to what we reported in the March quarter after removing the favorable year-over-year impact from foreign exchange tailwinds. Keep in mind, during the March quarter, FX was a 2.5 percentage point tailwind to the total company growth rate, and for services, that impact was slightly more favorable.

We expect gross margin to be between 47.5% and 48.5%. We expect operating expenses to be between $18.8 billion and $19.1 billion. We expect OINE to be around $250 million, excluding any potential impact from the mark-to-market of minority investments, and our tax rate to be around 17%. With that, Tim and I will take questions.

- Kevan Parekh, CFO

Based on the above, here are the estimates for Revenues and Earnings per Share

Sequential change in segment revenues:

My Revenues and EPS expectations in table form:

	CQ2 26
Year Earlier Rev	94.036
My Est. Rev	109
Year Earlier EPS	1.57
My Est. EPS	1.921
My Rev. Growth	15.6%
My EPS Growth	22.4%

My segment revenues and growth expectations in table form:

iPhone Rev	53.267
Mac Rev	9.514
iPad Rev	6.396
Wearables & Home Rev	7.700
Services Rev	31.800
iPhone Growth (y/y)	19.5%
Mac Growth (y/y)	18.2%
iPad Growth (y/y)	-2.8%
Wearables & Home Growth (y/y)	4.0%
Services Growth (y/y)	16.0%

Note that the revenue expectations are for 15.6% growth while guidance is at 14% to 17%. Chances are that they will hit the upper end of the range and I may revise these estimates to reflect that as we get more data.