Services revenue jumped to an all-time high of $27.4bn, a more than 13pc increase year on year.
Apple’s quarterly revenue is up 10pc, hitting $94bn, with boosts in iPhone and Mac sales, and services returns reaching an all-time high.
iPhone sales grew by nearly 13.5pc and Mac sales by 14.8pc.
Total product sales were at $66.6bn for the quarter ending June, up more than $5bn from the same period last year, while services stood at $27.4bn – a more than 13pc increase year on year.
The record services revenue, which includes iCloud, App Store and Apple Pay, was “not a surprise”, said Forrester VP principal analyst Dipanjan Chatterjee. According to him, this is continuing a trend that has been seen for a while.
“The iPhone revenue boost came from some one-off revenue bumps, including consumers buying in advance of tariffs and a China boost from in-market subsidies.”
On the earnings call yesterday (31 July), CEO Tim Cook said that the company incurred roughly $800m in added tariff-related costs for the latest quarter, and expects – if the situation doesn’t change – an impact of another $1.1bn in the next quarter.
Throughout the call, Cook made repeated mentions of Apple’s continuing investment in the US and American innovation. Chatterjee said, “Trade policy remains unsettled and uncertain, and Apple is acutely aware of the importance of remaining on the right side of the administration, lest it face increasing ire and tariff risk.”
In the immediate aftermath of the US ‘Liberation Day‘ tariffs, Apple lost roughly $700bn in market capitalisation.
Adding further concerns are the 25pc tariff on India, a country where a majority of iPhones are made. Although, experts say that it will be business as usual for Apple in India.
The company announced a slew of new updates at its recent Worldwide Developer Conference this June. This included a new software design called Liquid Glass and a deeper partnership with OpenAI. Apple also revealed at the event that the time for MacBooks with Intel chips was over.
Still, it seems that investors are concerned about Apple AI. So, reports surrounding a possible acquisition of the AI browser Perplexity – if it were to go through – could help the company’s prospects and give Siri a boost.
“Apple’s AI urgency is palpable and there is a quiet admission of its sluggishness in the acknowledgement that it may have to lean heavily on acquisition to compress timelines,” Chatterjee said.
“Rumours swirl about a Perplexity deal, and if that were to happen, it may greatly accelerate the elusive promise of a more effective Siri.”
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