Key facts
- Apple reported fiscal third-quarter revenue of $109.42 billion, surpassing analyst expectations.
- iPhone sales increased 21.7% to $54.25 billion, marking a record for the product's third quarter.
- Mac sales grew 28.7% to $10.35 billion, driven by strong demand.
- Profit per share was $2.02, including 11 cents from U.S. government tariff refunds.
- Gross margins reached 50.1%, with 2% attributed to tariff refunds.
Apple Inc. reported fiscal third-quarter sales and profits that exceeded Wall Street's expectations, driven by robust demand for its iPhones and Mac computers. The company announced total revenue of $109.42 billion, a 16.4% increase year-over-year, surpassing the consensus estimate of $108.65 billion. Profits came in at $2.02 per share, including 11 cents from U.S. government tariff refunds, which was also above the estimated $1.89 per share.
iPhone sales were a key driver, rising 21.7% to $54.25 billion, marking the best-ever third quarter for the product. This strong performance occurred despite typical seasonal slowdowns and industry-wide memory chip supply shortages that have led to price increases for other Apple products like Macs and iPads. Mac sales saw a significant surge of 28.7%, reaching $10.35 billion, bolstered by strong demand for both entry-level and high-end MacBook models.
Apple CEO Tim Cook attributed the strong product cycle and supply chain constraints for advanced chipmaking technology as primary factors behind the demand. He noted that the company's Mac lineup, in particular, experienced sales growth despite price increases. While iPad sales declined 5.9% to $6.19 billion, Apple's services business, including the App Store and iCloud, grew 12.1% to $30.74 billion, and wearable sales increased 6.5% to $7.88 billion.
The results come as Apple has regained its position as the world's most valuable company, surpassing AI chip leader Nvidia. The company has also been integrating new AI-driven features into its products, such as a revamped Siri virtual assistant, attracting consumers and developers for on-device AI tasks. Apple's cautious spending approach, compared to other Big Tech rivals investing heavily in data centers, was also highlighted, though the company has signaled potential future capital needs by ending its goal of returning all cash to shareholders.