Apple earnings narrowly top expectations
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Apple CEO Tim Cook, speaking at last year's iPhone 17 launch event. Photo: David Paul Morris/Bloomberg via Getty Images
Apple reported quarterly earnings that beat Wall Street estimates, with iPhone sales roughly in line with expectations.
Why it matters: Apple's results ripple across the tech ecosystem, shaping demand for suppliers, chipmakers and wireless carriers tied to the iPhone.
- The company isn't immune to the memory chip and RAM crisis, ignited by the AI boom.
- "We expect significantly higher memory costs [for the current quarter and beyond]," Apple CEO Tim Cook said in a conference call with analysts.
Driving the news: Apple said it earned $29.6 billion, or $2.01 per share, on revenue of $111.2 billion in its fiscal second quarter.
- Analysts had been expecting earnings of about $1.95 per share, with revenue of just under $110 billion.
What they're saying: "Our business has been performing extremely well," Cook said on the call. "The first half of this year was very strong."
- Apple said it expects the company's revenue for the current quarter to be up 14% to 17% from a year ago.
- This factors in supply constraints limiting the company's ability to meet demand for Mac Mini and Mac Studio.
- For the Mac Mini and Mac Studio, Cook said supply constraints may extend "for several months."
Between the lines: The report comes 10 days after the company announced that John Ternus will replace Cook as CEO, starting in September.
- "This is an especially exciting moment for Apple," Ternus said on the call.
- "While you're not going to get me to talk about the details of that roadmap, suffice it to say, this is the most exciting time in my 25-year career at Apple."
Zoom in: Every major product category rose from a year earlier, though Cook noted that supply constraints limited sales of both the Mac and iPhone.
- iPhone: $56.9 billion, up from $46.8 billion.
- iPad: $6.9 billion, up from $6.4 billion.
- Mac: $8.4 billion, up from $7.3 billion.
- Wearables and accessories: $7.9 billion, up from $7.5 billion.
- Services: $30.9 billion, up from $26.6 billion.
Zoom out: On a geographical basis, Apple saw sales increase from last year in every region, with a notable jump in sales from China.
- Americas: $45.1 billion, up from $40.3 billion.
- Europe: $28.1 billion, up from $24.4 billion.
- Greater China: $20.5 billion, up from $16 billion.
- Japan: $8.4 billion, up from $7.3 billion.
- Rest of Asia Pacific: $9.1 billion, up from $7.3 billion.
