SAN FRANCISCO, Nov 3 — Apple exceeded analysts’ expectations for its latest results on Monday when the iPhone-maker said it notched a “revenue record” for the July-September quarter, driven by iPhone sales and services revenue, but increased costs related to AI will drag down margins.

“We’re closing the year with our most ambitious lineup yet,” CEO John Ternus, who took over from Tim Cook in September, said in a statement before speaking on a call with analysts Monday afternoon.

Ternus hinted at an optimistic outlook for sales of its latest products, including the foldable Duo, during the holiday season.

However, CFO Kevan Parekh warned that the company Apple’s gross marin will slow a bit in the final stretch of the year, compared to its September quarter margin of 47.9 per cent.