Apple's June-Quarter Sales Growth to Be Strongest in Five Years
Apple is expected to report its strongest sales growth for the June quarter in five years, driven by steady iPhone pricing and strong demand. While rivals raised smartphone prices due to rising component costs from AI datacenter buildouts, Apple maintained iPhone prices, leading to a 3% increase in shipments and an expanded market share of nearly one-fifth according to Counterpoint Research. This strategy helped the company reclaim its position as the world's most valuable firm after surpassing $5 trillion in market value for the first time. Analysts anticipate revenue growth of around 15.5%, reaching approximately $108.65 billion, with iPhone sales expected to rise by nearly 21%. However, profit and margin growth are projected to slow slightly due to increased costs passed on through price hikes in other product lines like iPads and MacBooks. Some analysts believe Apple's strong ecosystem will help mitigate demand impacts from future iPhone price increases. Investors remain cautious as the company is expected to raise prices later this year, potentially affecting consumer demand. Portfolio managers note that while Apple has been rewarded for avoiding heavy AI investments amid growing skepticism about returns on such spending, its high valuation leaves little room for error.
Topics: AI investment Apple iPhone sales growth market share pricing strategy