Apple (AAPL) blew away all forecasts yesterday when they announced earnings results for the September quarter. Here are the key extracts from the subsequent conference call:

Headline Numbers

• $8.5 b in profit
• $42.12 b in revenue
• 39.27 mio iPhones (+16% YoY)
• 5.5 mio Macs. Strongest Mac sales ever. Highest market share since 1995. Emerging markets grew 46% YoY. Mostly MacBook Pro and MacBook Air
• 12.3 mio iPads
• $155.2 b in cash
• iPhone ASP $603. 
• Strongest revenue growth in 7 quarters
• Returned $17 b to investors during Sept. quarter alone, $45 b over the past year

On the iPhone

• IP6/6 Plus demand was strong, but 5S/C remain popular at lower price points
• Underlying demand "far outstripping supply". Selling everything they can produce. Don't know when supply will catch up.
• Cook said that "it's clear" that Apple is "not nearly balanced" when it comes to supply and demand. "We're not even on the same planet."
• "It's very unusual to see every country having a marked improvement over the previous year, and that's what we're seeing on iPhones," Cook said.
• "We do not envision, as of today, being able to achieve the extra inventory in the channel that we believe is needed," he said. "It's hard to tell when you're at a point when you're selling everything you're making," Cook said of assessing demand. "It's a good problem to have."
• iPhone supply below target range of 4-6 weeks of channel inventory. Will begin targeting channel inventory in the 5-7 week range to make up.
• Sales in US grew 17% YoY, while Western Europe was up 20%
• Even stronger growth in Latin America and Middle East. Sales more than doubled in Eastern Europe.
• Apple had a 69% share of the U.S. commercial smartphone market. 
• Maestri cited a survey that said 75% of enterprises planning to buy in the September quarter will choose iPhone.
• Cook still sees a large opportunity for people buying their first iPhone, and he thinks that opportunity increases with the iPhone 6 and 6 Plus. He also expects a high number of upgrades from previous iPhone owners.

On Apple Pay

• Cook said Apple is focused on consumer experience as well as security and privacy. He said other mobile payments systems are about monetizing user data, but Apple is not interested in that.
• "We think we will sell more devices, because we think it's a killer feature," Cook said of Apple Pay. "It's far better than reaching in your pocket book and the card that you're looking for, and half the time it not working."
• Apple does not charge the customer or the merchant for the benefit, but they get a transaction fee from issuing banks (not disclosed).
• "We will be reporting Apple Pay in the services line item on the data sheet, and so we see it as an incredible service that is the most customer centric mobile payment system that there is," Cook said. "We're very proud of it, and we can't wait to sign on more retailers and also extend it around the world."

On Mac Sales

• Apple ended the quarter with Mac channel inventory slightly below its 4-5 week target range.
• Mac was an "absolutely blow-away quarter," "stunning," Cook said. Notebooks and back to school drove sales.
• "If you went out to college campuses right now, you would see a lot of new Mac notebooks, based on the sales," the CEO said.
• "To be up 21 percent in a market that's shrinking, it doesn't get any better than that," Cook said.

On iPad Sales

• Cook admitted some people will look at a Mac and iPad, and opt for Mac. Others will look at iPhone and iPad and choose iPhone. He said he's OK with both of those.
• "I'm very bullish on where we can take iPad over time."
• Strong adoption of the iPad in the enterprise market.
• Cook said he doesn't think the tablet market is saturated and that market watchers should focus on the big picture rather than the last 90 days.
• "I view it as a speed bump, not a huge issue," he said. "That said, we want to grow. We don't like negative numbers on these things."
• He noted that the country that sold the lowest percentage of iPads to people who never bought an iPad before, the number was 50 percent. The range goes from 50 to over 70 percent.
• "When I look at first time buyer rates in that area, that's not a saturated market," he said.
• "People hold on to their iPads longer than they do a phone. And because we've only been in this business four years, we don't know what the upgrade cycle will be for people."

On Enterprise Sales

• "The deeper the apps go in the enterprise, the more it opens up avenues in the enterprise," Cook said.
• IBM's new iOS-based mobile solutions for enterprises rolls out next month. 
• Huge corporate interest since the IBM deal was announced. 
• Currently working on deployment with 50 corporations.

On iTunes

• Revenue of $5.4 b up 22 percent year over year.
• Registered app developers up 22% YoY, rapidly approaching 10 million.

Retail business

• Store revenue of $5.1 b, up 15% YoY. New Sept. quarter record.
• 10 new stores, completed re-modeling of 3 stores.
• 25 new store openings in fiscal 2015, whereof 3/4 will be outside the U.S.
• Five more re-modelings are expected.
• Average revenue/store of $11.9 mio vs. $10.9 mio a year ago.
• +18,000 visitors per store, per week.

On Future Reporting Structure

• As of next quarter, Apple Pay revenue will fall under the "Services" category, 
• iPods, Apple Watch, Apple TV and other products will be under "Other Products"