Apple Reports Strong iPhone Sales but Faces Service Revenue Shortfalls
Apple reported a significant increase in iPhone sales during its fiscal third quarter, with revenue jumping to $54.3 billion—22% higher than the previous year and exceeding analyst expectations. The strong performance was driven by consumer demand ahead of anticipated price hikes due to rising component costs. Mac sales also surged 29%, attributed to new models like the MacBook Neo and Pro. However, Apple's services revenue grew at a slower pace—12% to $30.74 billion—which fell short of expectations and marked a deceleration from last quarter’s growth rate. The company cited currency headwinds as a key factor affecting service performance. Despite these challenges, overall gross margin improved due in part to tariff refunds. Looking ahead, Apple expects revenue to grow by 9%–11% year over year for the next fiscal quarter and anticipates mid-teens growth in iPhone sales despite supply constraints and currency impacts.
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Topics: iPhone sales Mac revenue services growth