Apple Q2 2015 conference call: Just the highlights!

Apple has just announced the company's Q2 2015 financial results and, as always, a conference call follows.

The call includes statements and a question and answer session. We'll have a complete transcript available after the show. In the meantime, here are live updates of only the most important details and revelations. We're updating as the call happens, so refresh your browser for the latest highlights.

• Higher rate of switchers than in previous iPhone cycles.
• Best App Store record ever. $5b in total services revenue.
• Double digit Mac unit growth in estimate -7% market.
• Year to date results staggering
• Revenue grown by 28%.
• Net income up 36%.
• EPS up 44%.
• 27 acquisition in 6 quarters.
• Generating more cash than need to run business.
• Another update to capital return program. Expanding to $200b.
• Discover US announced for Apple Pay beginning this fall.
• Best Buy announced Apple Pay in app, later this year in stores.
• 50 major hospitals, including Stanford will accept Apple Pay this year.
• Cedar-Sinai turned on largest HealthKit integration 80,000 patients.
• ResearchKit kit amazing, exceeding expectations. 60,000 enrolled in first few weeks.
• Spending $2B to build data centers in Ireland and Denmark. 670,000 jobs in Europe, most from App Store success.
• Will run on 100% renewable energy from day 1.
• All new MacBook, happy with response.
• HBO Now on iOS and Apple TV. Incredibly popular. One of top downloads.
• Apple Watch response overwhelmingly possible. More than 3,500 apps.
• Terrific results despite growing foreign exchange headwinds.
• China quarterly record for revenue.
• 61.2 million iPhones, demand incredibly strong. More than doubled in Singapore, Korea, Taiwan, up in Canada, Mexico, Turkey.
• iPhone ASP $659
• iPhone channel up $1m units. In low end of target 5-7 weeks.
• 4.6 million Macs. 10% yoy growth.
• Led by portables. Spurred by March updates. Within 4-5 week target range.
• 12.6 million iPads. Sell through 13.7 million, reduced inventory by 1.1 million units. In 5-7 week target range.
• New record for iPad sales in Japan, record in China. Other markets muted.
• Number one tablet in sales, quality/quantity of apps. Maintains very strong leadership share.
• Number one tablet in enterprise. 77% plan to purchase iPad.
• $5 billion in services, 9% up. App Store incredibly popular, up 29%. Generated 70% more revenue than Google Play.
• 22% yoy increase in Apple retail traffic.
• 6 new stores in Greater China. 21 stores in 11 cities. On track to 40 by next year.
• Share repurchase up to $140b.
• Dividend raised to $0.52 per share.
• 46-48 billion in revenue projected. 38.5 and 39.5% gross margin.

Q&A

• Q: Dynamics of customer mix for iPhone?
• TC: Higher rate of switchers. First time buyers. Emerging markets. Up 58% yoy. Would have been higher without exchange headwinds mentioned earlier.
• Q: Watch may take longer to ramp? Is that playing out?
• TC: Right now demand is greater than supply. Working hard to remedy that. Made progress over last week or so. Deliver more than initially anticipated. Keep doing that. Sent some notes out today with updates. Generally happy. New product, you wind up taking some time to fully ramp. In a good position. By some time in late June, currently anticipate to begin selling in additional countries. Hard to gauge demand when you don't have product in stores. Filling orders completely online. Responses have been overwhelmingly positive. Far ahead of where they expected to be with apps. iPhone launched with 500 apps. iPad launched with 1000. Internal goal was to beat 1000. Now have over 3500 apps for the watch. Couldn't be happier. Learning quickly between customer preferences. Much larger breadth of possibilities. In some cases called that well, in some cases making adjustments to get in line with demand. Confident they understand how to do it. Happy enough that they're looking forward to expanding in late June.
• Q: What's driving R&D elevation?
• LM: Look at current product portfolio much broader. 2 new iPhones a year. 2 iPads. Have Apple Watch. Developing core foundational technologies more in-house now. Spending ahead of some products that will generate revenue in the future. Combine all that is why you see increases. R&D, innovation is core of the company.
• Q: More switchers? Market share? Watch margin?
• TC: iPhone grew 40%. IDC estimate is 16%. Grew 2.5x. Almost every country grew multiple of market. Emerging markets did extremely well. Very bullish on current quarter as well. Also doing well with first time buyers. Tough to find something in the numbers not to like.
• LM: Guided to 38.5-39.5%. Loss of leverage, foreign exchange.
• Q: Update to update metric?
• TC: About 20% of active install base has upgraded to iPhone 6 or iPhone 6 Plus. Want to invite over as many switchers as they can.
• Q: Context for Apple Watch demand?
• TC: Thrilled with Apple Watch. Not sure how to say it clearer. Watch or past on iPad or iPhone, when demand is much greater than supply, difficult to gauge what it is. Don't make long term forecasts. Haven't even studied consensus numbers. Have enough to study here. Close to 100% positive. Hard to imagine it being better.
• Q: Lower watch margins are surprising. Burdened by start up costs and lower volumes?
• TC: Not going to guide or give projections outside current quarter. Currently lower than company average. Intuitive to Apple. Must be looking at it through different lens. First quarter always learning. Like every product. Keep in mind functionality of the product is incredible.
• China: Increased iPhone POS to over 40,000. Up 9%. In many more cities. Online store revenue up over 3x yoy.
• Q: What would it take to re-accelerate iPads?
• TC: Have to stop having situations where they sell through more than sell-in. They've had cannibalization from iPhone and from Mac. Never worried about that. It is what it is. It will play out. Not sure when, but confident that it will. IBM partnership is in early stages. Likes everything he sees. Big believer in iPad to play in major way. First time buyers rates in US is at 40%, China almost 70%. Not numbers you'd get if the market was saturated. Thinks that theory is not correct. Usage numbers off the charts. Customer sat near 100%. All numbers look fantastic. As inventory plays out, as make some investments in product pipelines, enterprise taking over, iPad is extremely good long term business. Strongly believes it will grow again.
• TC: BRIC countries up 64% yoy. Has to be coming from middle class. Upper income earners, only so many of those. Can't grow those numbers without getting significantly into middle class. Hopes they go beyond that. Doesn't have data, but clear to him middle class has to be true.
• Q: HBO Now, how should we be thinking about Apple as a conduit?
• Giving customers what they want with Apple's classic ease of use.