Apple Inc (NASDAQ:AAPL, ETR:APC) shares nudged 1.5% higher after hours as the Silicon Valley giant delivered its best quarterly growth since 2021, outpacing expectations for both revenue and profit.
The results, covering the three months to 29 June, mark a return to form for Apple after a stretch of slower growth, with iPhone demand rebounding sharply and a resurgence in China offsetting earlier concerns about market saturation and economic headwinds.
Quarterly revenue climbed 10% to $94.04 billion, outstripping analyst forecasts, while earnings per share of $1.57 compared to consensus estimates of $1.43.
The mood among investors and analysts was noticeably brighter, especially as Apple offered guidance pointing to mid- to high-single-digit revenue growth for the coming quarter and stable gross margins, even as the company faces hundreds of millions in new US-China tariffs.
Here are five key takeaways from Apple’s latest figures:
1. iPhone shines with double-digit growth
The iPhone business remains the group’s cornerstone, with sales up 13% to $44.58 billion. Demand for the new iPhone 16, particularly among existing Apple users trading up, drove the surge.
Chief executive Tim Cook highlighted strong double-digit sales for the latest models, helping to reverse some of the sluggishness seen in previous quarters.
2. Mac rebounds as consumers embrace new models
Apple’s Mac division posted its fastest growth of any major segment, with revenue jumping nearly 15% year on year to $8.05 billion.
The introduction of upgraded MacBook Air laptops, Apple’s most popular computer, was a key contributor, attracting both new and repeat buyers in a market that has struggled for growth post-pandemic.
3. Services engine rolls on
Services, which include the App Store, iCloud, Apple Music and more, delivered another standout performance.
Revenue rose 13% to $27.42 billion, slightly ahead of expectations. The company called out double-digit growth in App Store takings and a strong rise in paid iCloud subscriptions.
This division has become an increasingly important and resilient profit driver for Apple, with much higher margins than hardware.
4. China returns to growth, offsetting global trade worries
A strong performance in Greater China, where sales rose 4% to $15.37 billion, reversed the declines of previous quarters.
Apple credited a local subsidy programme for helping demand. While tariff costs remain a headwind, with the company expecting these to reach $1.1 billion in the current quarter, Apple’s results suggest it is managing these pressures for now.
5. AI investment ramps up amid ‘profound’ technology shift
CEO Cook confirmed Apple is significantly growing its investment in artificial intelligence, following a muted response to its initial AI announcements at June’s developer conference.
The company has acquired seven AI-related businesses so far this year, embedding the technology across its platforms. Cook stressed that, for now, he sees AI as a complement to the iPhone rather than a threat.
What this all means
For UK investors with Apple exposure, whether through direct shareholdings, ISAs, or popular global tech funds, these results mark a notable return to growth for the world’s most valuable company.
Robust iPhone sales and resilient demand in China have helped restore confidence after a more uncertain spell for the shares earlier this year.
The continued momentum in services, plus growing AI investment, are positive signals for future profit streams. While headwinds such as tariffs and some patchy hardware sales, notably in iPads and wearables, remain, Apple’s performance this quarter underlines its enduring appeal to consumers and its ability to navigate complex global markets.
Patience may still be required on the AI front, but Apple’s brand, balance sheet and global reach continue to set it apart from rivals.