SAN FRANCISCO: Apple beat market expectations in its latest results, capping what is expected to be Tim Cook's final earnings report as chief executive with a strong showing led by iPhone and Mac sales.
Sales at the Cupertino-based tech giant rose 16 percent to $109.4 billion in the April-through-June period, while profit climbed 27 percent to $29.8 billion.
Apple's results were powered by robust iPhone demand, a sharp rebound in China, and double-digit growth in every region where it operates.
The company's performance was boosted by refunds of tariffs imposed last year by Donald Trump and ultimately overturned by the US Supreme Court in February.
Its iPhone sales jumped 22 percent to $54.3 billion as customers kept upgrading to the latest models, while Mac revenue climbed 29 percent.
Apple's services business—which spans the App Store, iCloud, Apple Music, and advertising—grew 12 percent to $30.7 billion, though this was lower than expectations.
Shares in Apple dropped by nearly five precent in after hours trading on the services miss.
"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," Cook said in a statement.
The earnings announcement was expected to be the last for Cook as chief executive.
CEO change
John Ternus will take over as Apple chief executive on September 1, with Cook becoming executive chairman of the iPhone maker's board.
Cook has led the company since 2011, taking over shortly before the death of co-founder Steve Jobs.
Long criticized for falling behind in the AI race, Apple is now being rewarded by Wall Street for resisting the vast investments its big tech rivals have poured into chips and data centers.
Apple touched a $5 trillion market value this week, while rivals including Meta, Google, and Microsoft have seen their shares suffer this year as investors question the profitability of their huge AI bets.
Those companies are spending hundreds of billions of dollars on AI, with Meta's shares sinking about nine percent Thursday after its results stoked alarm over its spending.
Microsoft, by contrast, rose sharply after signaling its AI bets were starting to pay off—a divide that has rewarded Apple's more restrained approach.
The major concern for Apple's business is the price increases in memory chips, a key component for electronics.
The iPhone maker in June raised prices for its Mac computers and iPad tablets, citing spiraling memory and storage costs sparked by the rise of artificial intelligence, though it spared the iPhone.
Attention is now turning to how Apple will price its next lineup of smartphones, expected in September and reportedly including a foldable model.
This week the company also launched Apple Upgrade, a leasing program that lets US customers pay for an iPhone or other devices in monthly installments.
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