Apple experienced significant sales growth, with its latest iPhone series being a key driver, despite a general downturn in the global smartphone market. The company achieved its strongest June-quarter sales growth in five years by maintaining iPhone prices, which allowed it to gain market share even as overall smartphone shipments fell to a 13-year low. This strategic pricing decision, in contrast to price increases for iPads and MacBooks, helped push Apple's market share to nearly one-fifth.
The company's robust performance is further evidenced by its best second-quarter results on record, with revenue increasing by 16.6% year-over-year to $111.18 billion, exceeding analyst expectations. iPhone sales specifically surged 21.7% year-over-year to $56.99 billion. Apple's earnings per share also saw a healthy increase of 21.8% year-over-year to $2.01, surpassing Street analyst predictions.
Analysts are largely optimistic about Apple's future, projecting a 15.5% revenue increase to $108.65 billion and an 18.1% profit growth for its fiscal third quarter. The company's ability to maintain iPhone prices despite rising memory chip costs, partly by avoiding massive AI infrastructure spending, also contributed to its financial strength, helping it reclaim its position as the world's most valuable company with a $5 trillion market capitalization. Several analysts have maintained "Buy" or "Outperform" ratings, with price targets as high as $400, though some express caution about the sustainability of this growth due to potential future price increases.
