Apple has posted a solid fiscal third quarter, climbing past Wall Street’s expectations thanks to strong sales of the iPhone and MacBook computers.
Apple raised the prices of its Macs and iPads last month, citing a memory-chip shortage brought on by the artificial intelligence boom. The company had called the demand spike an “unprecedented challenge” for the consumer electronics industry. While it hasn’t yet raised iPhone prices, analysts and consumers expect that to happen later this year.
The maker of the iPhone and iPad said on July 30 it earned $29.79 billion in the April-June period. That is up 27 percent from the same period a year earlier.
Revenue grew 16 percent to $$109.42 billion from $94.04 billion.
“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” said Tim Cook, Apple’s CEO. It was Cook’s final earnings call. He announced his retirement in April, after 15 years at the helm of the company. John Ternus, Apple’s head of hardware engineering, will assume the role on Sept. 1.
Apple continues to generate cash without the massive artificial intelligence spending that its Big Tech peers area are dealing with “and that showed across most parts of the operation,” said Thomas Monteiro, an analyst at Investing.com. “As the market grows more worried about free cash flow trajectories elsewhere in Big Tech, Apple keeps standing out as the safe haven in the storm.”
But he cautioned that memory costs — which are continuing to increase — could challenge Apple in the coming quarters. It also won’t have the tariff benefit to boost profit margins again. September’s iPhone launch and more price increases should “help cushion the hit,” Monteiro said.
