The last printed quarter, three months ended 27 June 2026, is already public. Exhibit 99.1 went out on 30 July. The 10-Q followed on 31 July. Total net sales 109,417 million, up from 94,036 million. iPhone 54,252 million against 44,582 million. Mac 10,352 million. iPad 6,191 million. Wearables, Home and Accessories 7,883 million. Services 30,739 million against 27,423 million. That is 12 percent on the Services line and 22 percent on the iPhone line. iPhone was still the larger category. iPhone at 54,252 million is a launch quarter. Services at 30,739 million is the duration line in that same quarter. They are not one number.
Read Services against Services, not against the iPhone line.
Cost of sales is the other split on the same page. Products 47,153 million against product net sales 78,678 million. Services 7,494 million against 30,739 million. Company gross margin printed 50.1 percent, including about two percentage points from tariff refunds. Those two percentage points of tariff refunds sit in the company gross margin of 50.1 percent, beside Services cost of sales of 7,494 million. The 10-Q says Services gross margin increased on higher Services net sales and a different mix of services, partly offset by higher costs, and that the Services gross-margin percentage was flat against the year-ago quarter. It does not print an App Store dollar, an iCloud dollar, or an advertising dollar. The MD&A names advertising and cloud services as the primary drivers of the Services increase. Named does not mean numbered. App Store, iCloud, and advertising dollars stay off this file.
Deferred revenue is the residue that makes the duration sentence literal. Total deferred 14.9 billion at 27 June 2026 against 13.7 billion at 27 September 2025. Current deferred 9,538 million against 9,055 million. Of the June quarter's sales, 4,086 million had sat in deferred revenue at the start of the period. The company expects 64 percent of the deferred book to be realized in less than a year, 23 percent in one to two years, 11 percent in two to three, 2 percent beyond that. Short duration. Still a book. It is a claim already sold that still has to be performed. The long-bond page on this catalog is a different duration. Inventories 11,092 million against 5,718 million at fiscal year-end. Inventories are the kit. The 14.9 billion figure is the deferred book.
Pro models, then the Services names
iPhone net sales rose on Pro models, the 10-Q says. AppleCare, iCloud, the App Store, advertising, payment services, Music, and TV are the Services names on the 8-K. The 10-Q will not price them one by one. iPhone at 54,252 million is still the larger category. Services at 30,739 million is the duration line in the same company. An iPhone unit is a hardware count on a different line.
The next 10-Q will look like a phone year. It always does in a September quarter. iPhone dollars will likely be the headline again. Read Services against the year-ago Services line, not against the iPhone line, and not against 319.97. A sequential dip is already on the page. March-quarter Services were 30,976 million. June printed 30,739 million. Year-over-year still rose. One quiet June against a record March is not two down 10-Qs. A launch beat is an iPhone month. Services duration is June at 30,739 million against March at 30,976 million, read against the year-ago Services line.
June Services printed 30,739 million against March at 30,976 million.