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iPhone and Mac grew beyond expectations, and profit margins hit rare highs. The post-earnings sell-off shows that investors have shifted their focus from just how much Apple has just made to whether this growth can continue at the same pace and profit margins into the next quarter. On Thursday, Apple delivered a report card that most companies would celebrate. For the fiscal third quarter ending June 27, Apple's revenue reached $109.4 billion, up 16% year-on-year; Diluted earnings per share were $2.02, up 29% year-over-year. Revenue from iPhone, Mac, and services all set records for the June quarter, and the base of active device installations hit new highs. Apple called it the strongest June quarter in its history. The market's immediate reaction was to sell, with the stock price noticeably falling in after-hours trading. Chart | After the earnings report was released, Apple's stock price fell noticeably in after-hours trading, with market attention shifting to the quality of growth in the next quarter. Two seemingly conflicting events are happening simultaneously: Apple's business performance this quarter was strong, but investor confidence in the next quarter has declined. The key to this disagreement lies in five issues. 1. How strong is this financial report? Let's first look at the most easily overlooked part: Apple's growth comes from multiple product lines. iPhone revenue reached $54.25 billion, up 21.7% year-on-year, exceeding market expectations; Mac revenue grew 28.7% to $10.35 billion, also significantly exceeding expectations. Service revenue rose to $30.74 billion, up 12.1% year-on-year. Revenue in Greater China grew by 22.4%, showing