iPhone saw 58 percent year over year growth, while the overall smartphone market saw 45 percent growth. iPhone 5 demand has been "phenomenal," Oppenheimer said. It launched in 31 countries before the end of the September quarter.
Demand for the iPhone 5 continues to outstrip supply. Ended the quarter with about 9.1 million iPhones in channel inventory, a sequential increase of about 800,000 iPhones.Recognized revenue from iPhone handsets and accessory sales was $17.1B, up 56 percent.
Canon and Amtrak are utilizing iPhones — Amtrak is using them to train its conductors to use new in-house apps for ticketing and reporting. News organizations like BBC, WSJ, CTV News, and others are using iPhone cameras to capture HD news footage on location.
Oppenheimer said Apple has made a number of improvements to Maps over the past month and the company will not stop until Maps is up to the company's traditionally high standards.
"We are in a significant state of backlog right now," Cook said. "In terms of production, our output has improved significantly since earlier this month. I'm very, very pleased with the progress we've made there, I'm pleased with the current volume output there." Cook said Apple is on track to debut the iPhone 5 in 100 countries before the end of this quarter. There will be "some large countries," he said, in the month of December.
He noted it's common for there to be a learning curve with new product introductions, but this is the "most prolific period" in the company's history for new product introductions. "We do see all of these costs associated with each of these, but I don't see those costs accelerating on a per-unit basis as we go through the quarter. I see it very much being a production ramp amongst many, many new products."