Apple logs its highest revenue growth since December 2021
What's the story
Apple has reported its third-quarter earnings, exceeding Wall Street's expectations for both profit and revenue. The tech giant witnessed a 13% year-on-year (YoY) growth in iPhone sales and a 10% increase in overall revenue. This marks Apple's largest quarterly revenue growth since December 2021. Following the announcement, Apple shares rose in after-hours trading as the company shared data points about its performance for the September quarter.
Financial highlights
iPhone revenue at $44.58 billion
For the quarter ending June 28, Apple reported earnings per share of $1.57, beating the expected $1.43. The company's revenue also exceeded expectations at $94.04 billion compared to an anticipated $89.53 billion. iPhone revenue stood at a whopping $44.58 billion, far surpassing the projected $40.22 billion. CEO Tim Cook attributed the success of this business to the popularity of the iPhone 16 model. Apple's Services revenues also beat estimates with figures of $27.42 billion versus $26.80 billion expected.
Profit and margin
Net income for the quarter was $23.4 billion
Apple's net income for the quarter was $23.4 billion, a significant jump from last year's $21.45 billion. The company also reported a gross margin of 46.5%, higher than the expected 45.9%. This strong performance across various sectors indicates Apple's resilience in the current market conditions and its ability to navigate potential challenges such as tariffs effectively.
Market expansion
Mac business grows nearly 15%
Apple's Mac business grew nearly 15% to $8.05 billion in revenue, making it the fastest-growing unit during the June quarter. The company also witnessed a 4% YoY increase in sales from China and Taiwan combined. This is a major turnaround from the previous two quarters, when Apple had reported a decline in these regions' sales figures.
Tech focus
Cook addresses investor disappointment over AI announcements
Despite investor disappointment over its artificial intelligence (AI) announcements at the recent Worldwide Developers Conference (WWDC), Cook said Apple considers AI as "one of the most profound technologies of our lifetime." He added that the company is "significantly growing our investments" in this area. Cook also revealed that Apple had acquired "around" seven companies so far this year, albeit none were major acquisitions in terms of dollar amount.