Apple Posts Strong Quarterly Results as iPhone Sales Surge Ahead of CEO Transition

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Kritik
31 Jul 2026
239
SubCategory | Business Trends

Apple Posts Strong Quarterly Results as iPhone Sales Surge Ahead of CEO Transition

SAN FRANCISCO, July 31 — Apple exceeded market expectations in its latest quarterly earnings report, driven by strong iPhone demand, a recovery in China sales and growth across all major regions, marking a strong final earnings report for outgoing Chief Executive Officer Tim Cook.

The Cupertino-based technology giant recorded revenue of US$109.4 billion (RM447.84 billion) for the April-to-June period, representing a 16 per cent increase compared with the same period last year.

Net profit also rose 27 per cent to US$29.8 billion (RM121.98 billion), supported by strong sales performance and refunds linked to tariffs imposed under former US President Donald Trump that were later overturned by the US Supreme Court.

Apple’s iPhone business remained the company’s biggest growth driver, with sales increasing 22 per cent to US$54.3 billion (RM222.04 billion) as consumers continued upgrading to newer models.

Mac sales also recorded strong growth, rising 29 per cent despite higher prices, while Apple’s services segment, including the App Store, iCloud, Apple Music and advertising, grew 12 per cent to US$30.7 billion (RM125.53 billion).

However, the company’s outlook for the upcoming quarter disappointed investors, with Apple forecasting revenue growth of between nine and 11 per cent due to supply constraints caused by stronger-than-expected demand for iPhone and Mac products.

Following the forecast, Apple shares fell by as much as eight per cent in after-hours trading.

“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 report is expected to be Cook’s final one as Apple CEO before he steps down from the role on September 1.

Leadership transition

John Ternus, who joined Cook during the post-earnings analyst call, will take over as Apple’s chief executive, while Cook will become executive chairman of the company’s board.

Cook has led Apple since 2011, taking over shortly before the death of co-founder Steve Jobs.

Despite criticism that Apple has fallen behind competitors in artificial intelligence (AI), investors have rewarded the company’s decision to avoid the massive AI infrastructure spending undertaken by rivals.

Apple briefly reached a US$5 trillion (RM20.45 trillion) market valuation this week, while some technology companies faced investor concerns over whether their huge AI investments would generate sufficient returns.

The company’s main challenge moving forward is the rising cost of memory chips, which are essential components in electronic devices.

Apple increased prices for Mac computers and iPads in June due to higher memory and storage costs linked to AI demand, although iPhone prices were not affected.

Cook said it remained too early to determine the long-term impact of those price increases on consumer demand.

Investors are now closely watching Apple’s upcoming smartphone lineup expected to launch in September, which is reportedly set to include a foldable iPhone model.

The company also recently introduced Apple Upgrade, a leasing programme allowing US customers to pay monthly instalments for iPhones and other Apple devices.

Source: AFP

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