Aatif Malik

Aatif Malik asked if the iPhone 17 upgrade cycle is comparable to the 2020-2021 years (iPhone 12, 13 users upgrading) and how Apple Intelligence might impact the refresh rate. He also questioned why Apple is experiencing supply constraints on advanced packaging, given its typical share at major foundries, and how long these constraints will affect its ability to meet true demand.

Answer

CEO Tim Cook stated that each iPhone cycle has unique characteristics and wouldn't compare it to a specific one, highlighting the iPhone 17 family's unique and compelling features. CFO Kevan Parekh added that the product resonated with multiple cohorts. Tim Cook clarified that constraints are on advanced nodes (3nm) for SoCs, a direct result of 23% growth far outstripping estimates and limited supply chain flexibility, declining to estimate when supply and demand will balance.

Aatif Malik asked if the disclosure of Google/TPUs as a 'preferred manufacturing partner' versus 'sole source' in the press release was new, and if other hyperscalers adopting TPUs would all go through Celestica or if other entities could participate in the TPU rack tray business.

Answer

Rob Mionis (President and CEO) clarified that 'preferred manufacturing partner' is not a new disclosure, and Celestica has never claimed to be sole-sourced for TPU programs, as most hyperscalers maintain a second source for BCP purposes. He stated Celestica is a primary source, with share awarded based on performance. Mandeep Chawla (CFO) added that if Google's TPU product is adopted beyond Google itself, Celestica, as their preferred manufacturing partner, expects to support that increased demand through Google's supply chain.

Aatif Malik with Citi inquired about Nova's mid-single-digit wafer fab equipment (WFE) outlook for 2026, asking if Nova expects to outperform WFE growth and if memory makers' shell capacity constraints are limiting growth. He also questioned the reported and guided gross margins and any impact from China restrictions.

Answer

Gaby Waisman, President and CEO of Nova, stated that Nova expects to outperform WFE growth in 2026, which is anticipated to be second-half weighted. Guy Kizner, CFO of Nova, clarified that Q3 gross margin was 59%, with Q4 guided to 58% ±1%, primarily due to product mix, and confirmed no significant impact from China restrictions on gross margins.

Aatif Malik asked about Nova's mid-single digit wafer fab equipment (WFE) outlook for 2026, potential upside, and whether Nova expects to outperform the WFE market. He also inquired about the gross margin guidance for the next quarter and any impact from incremental China restrictions.

Answer

Gabby Waisman, President and CEO, stated that Nova expects to outperform the WFE growth in 2026, anticipating a second-half weighted year with some improvements since September. Guy Kizner, CFO, explained that the gross margin guidance of 58% reflects pricing discipline and value delivery, with product mix being the main fluctuation factor. He confirmed no significant impact from China restrictions.