Apple reported fiscal third-quarter earnings that exceeded Wall Street expectations, with overall revenue rising 5%. The company expects similar revenue growth in the current quarter, with Services anticipated to grow at around 14%, and operating expenditures projected between $14.2 billion and $14.4 billion. Apple’s net income for the quarter was $21.45 billion, compared to $19.88 billion in the same period last year.
The iPhone remained Apple’s most significant business, accounting for 46% of total sales despite a 1% year-over-year decline to $39.29 billion in revenue. CEO Tim Cook highlighted that on a constant currency basis, iPhone sales grew. Apple’s new AI service, Apple Intelligence, has not yet impacted sales but has led to increased spending in preparation for its launch. The iPad division showed the strongest growth, with sales increasing nearly 24% year over year to $7.16 billion, driven by new product releases and first-time buyers.
Apple’s Services business, which includes subscriptions and hardware warranties, saw a 14% increase to $24.21 billion in sales. The company noted a significant number of new buyers for the Apple Watch and a strong base of active devices, now at 2.2 billion. However, sales in Greater China declined by 6% due to competition from local brands. Apple spent $32 billion on dividends and share repurchases during the quarter, reflecting confidence in its long-term prospects despite short-term challenges.
