Apple reported a stronger-than-expected quarterly performance on Thursday, helped by record iPhone sales and robust demand for Mac computers, but shares fell after the company issued a weaker outlook for the current quarter.
The results marked Tim Cook’s final earnings report as Apple chief executive before he steps down on September 1. John Ternus, the company’s head of hardware engineering, will succeed him.
Apple said it earned $29.79 billion in the three months to June, up 27 percent from $23.43 billion a year earlier. Earnings per share increased to $2.02 from $1.57.
Revenue rose 16 percent to $109.42 billion, exceeding the roughly $109 billion expected by analysts. Analysts had forecast earnings of $1.89 per share, according to FactSet.
The strongest performance came from the iPhone business. Revenue from iPhone sales increased 21.7 percent to a quarterly record of $54.25 billion.
Mac revenue also rose sharply, increasing 28.7 percent to $10.35 billion. Apple reported double-digit revenue growth across its iPhone, Mac and Services businesses and said sales increased across all geographic regions.
Despite the strong results, investors focused on Apple’s forecast for the September quarter. The company expects revenue growth of between 9 and 11 percent, below analysts’ expectations of about 12 percent.
Apple is also facing higher costs for memory chips and limited availability of advanced semiconductor manufacturing capacity. The pressure has been partly linked to the rapid expansion of artificial intelligence infrastructure, which has increased demand for memory and other components.
The company has already raised prices on some Mac and iPad models because of rising costs. It has not yet increased iPhone prices, although analysts expect price changes could come later this year.
Cook described the increase in memory costs as an exceptional challenge and said Apple expects those costs to rise further during the current quarter.
Apple’s latest earnings were also helped by tariff refunds, which contributed about $0.11 to earnings per share. The company will not receive the same benefit in the next quarter, putting additional pressure on margins.
Cook said Apple had delivered its strongest June quarter, pointing to growth across its main product and services categories.
Analysts said Apple’s strong cash generation continues to distinguish it from some major technology rivals that are committing huge sums to artificial intelligence infrastructure.
However, rising component prices and supply constraints could become a growing concern as Apple prepares for its next iPhone launch.
Apple shares fell as much as 8 percent in after-hours trading before recovering some of their losses. The company had recently reclaimed its position as the world’s most valuable listed company from Nvidia.
Cook said he remained confident in Ternus, Apple’s executive team and its workforce as the company prepares for its first leadership change since he became chief executive in 2011.
