Apple Reports Q2 Earnings: 10% Revenue Growth, iPhone Sales Up 13%

Apple reported a 10% revenue increase to $94.04 billion in the June quarter, its fastest growth since December 2021. iPhone sales rose 13% to $44.58 billion, driven by strong demand for the iPhone 16. Mac revenue grew 15% to $8.05 billion, while services revenue increased 13% to $27.42 billion. China sales gained 4% to $15.37 billion.

Apple Inc. (AAPL) reported a 10% revenue increase to $94.04 billion in the June quarter, its fastest growth since December 2021 [1]. The company's quarterly results were driven by strong iPhone sales, which rose 13% to $44.58 billion, and a 15% increase in Mac revenue to $8.05 billion. Services revenue also grew by 13% to $27.42 billion. Notably, China sales gained 4% to $15.37 billion, marking a significant recovery in the region [2].

CEO Tim Cook emphasized the remarkable performance of the iPhone 16 during the financial results call, noting that the model significantly outperformed its predecessor, the iPhone 15. The iPhone 16 tapped into replacement demand from existing users, posting robust double-digit growth [2].

The June quarter results come as Apple steps up its efforts in artificial intelligence (AI), with CEO Tim Cook highlighting the technology as "one of the most profound technologies of our lifetime" [1]. Apple has released 20 Apple Intelligence features and is making progress on a more personalized Siri, with plans to release it next year. The company is also reallocating resources and considering mergers and acquisitions to accelerate its AI roadmap.

Despite the strong revenue growth, Apple stock closed in the red on Friday, Aug. 1, due to broader market sell-off and tariff uncertainty. However, several brokerages have raised Apple's target price following the earnings, with the stock's mean target price of $231.46 being 14.4% higher than the Aug. 1 closing price [1].

References:
[1] https://finance.yahoo.com/news/aapl-stock-buy-now-tim-125040450.html
[2] https://www.ainvest.com/news/apple-record-breaking-revenue-surge-iphone-16-china-propel-growth-2508/