Apple generated $109.4 billion in revenue during the April-through-June quarter, setting new June quarter records for iPhone, Mac, and Services while posting a net profit of $29.8 billion.
The results came on Tim Cook’s final earnings call as CEO, with incoming chief executive John Ternus appearing on the call for the first time.
iPhone revenue reached $54.3 billion, up 22 percent from the same period last year, with Apple gaining global market share according to IDC data.
Mac had an even stronger run, pulling in $10.4 billion, up 29 percent year over year, driven largely by customer demand for the MacBook Neo.
Cook said supply constraints are limiting how many devices Apple can actually ship, and the company expects that pressure to intensify through the fall.
Prices Are Going Up, and Apple Says Its Hands Are Tied
Apple has raised prices on Macs and iPads, and Cook described the decision as reluctant.
During the earnings call, he attributed the increases to what he called a “100-year flood” in memory pricing, with costs rising each quarter and no near-term relief in sight.
Memory prices climbed from the December quarter to March, then again from March to June, and Apple expects the September quarter to be worse.
The company said it carried some inventory from prior quarters that softened the impact, but that buffer is shrinking.
Gross margin for the quarter was 50.1 percent, up from 46.5 percent a year ago. A portion of that improvement came from tariff refunds, which contributed roughly 2 percent to the margin figure.
Without those refunds, Apple said margins would have landed near the middle of its earlier guidance range.
For the September quarter, Apple is guiding gross margin between 47 and 48 percent, with only about a 1 percent tariff benefit expected.
Stock Falls Despite Record Results
Apple shares were down roughly 4.5 percent in after-hours trading following the earnings release, even as the company reported its best June quarter on nearly every financial measure.
The September quarter outlook projects revenue growth of 9 to 11 percent, a deceleration from the 16 percent posted this quarter, driven by foreign exchange headwinds and worsening supply constraints across iPhone, Mac, and iPad.
Cook said the supply problem stems from demand outpacing what the company originally projected.
iPhone growing 22 percent and Mac growing 29 percent in a single quarter exceeded Apple’s own expectations, and the chip fabrication capacity needed to sustain that pace has less built-in flexibility than normal.
Apple sources the custom silicon for its devices from advanced manufacturing nodes, and availability of those nodes is the primary bottleneck.
Services Growth Slows, But Passes 1.5 Billion Paid Subscriptions
Services revenue was $30.7 billion, up 12 percent from a year ago. That growth rate is lower than the prior quarter’s 16 percent, with foreign exchange accounting for most of the difference.
Weaker spending on mobile games and App Store regulatory changes in certain countries also weighed on the segment.
Apple TV+ viewership hit an all-time high during the quarter, Apple Pay added a record number of users in both developed and emerging markets, and total paid subscriptions across Apple’s services crossed 1.5 billion.
The company’s installed base of active devices reached a new all-time high of more than 2.5 billion, a figure Apple uses to illustrate the potential audience for its Services business.
More than half of iPad buyers during the quarter were new to the product, and the same was true for Apple Watch.
Morgan Stanley deployed over 20,000 iPhone 17 units as part of a corporate device program.
Florida school district is moving 25,000 students from Windows machines to MacBook Neo, with about half of US education MacBook Neo purchases replacing Windows or Chromebook devices.
Apple ended the quarter with $147 billion in cash and $84 billion in debt, returning $33 billion to shareholders through dividends and buybacks.
The company declared a quarterly dividend of $0.27 per share, payable August 13 to shareholders of record as of August 10.
