Apple Beats Earnings, Forecast Falls Short on Memory Costs
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- Apple reported quarterly revenue of $109.42bn (€95.2bn), up 16% year-over-year, and earnings of $2.02 per share, up 27%, beating analyst expectations of $1.89 per share on roughly $109bn in revenue.
- iPhone revenue hit a quarterly record of $54.25bn (€47.2bn), up 21.7%, while Mac revenue climbed 28.7% to $10.35bn (€9bn).
- Apple forecast current-quarter revenue growth of 9–11%, below analyst expectations of approximately 12%, citing rising memory-chip costs and shortages of advanced chipmaking capacity tied to the AI boom.
- Tim Cook delivered his final earnings report as CEO; John Ternus, Apple's head of hardware engineering, takes over on September 1 after 15 years of Cook's leadership.
- Cook described the memory price surge as a "100-year flood" and said Apple expected its memory costs to rise further during the current quarter.
- Tariff refunds contributed $0.11 per share to Apple's earnings — a benefit the company will not receive in the upcoming quarter.
- Apple already raised prices on some Mac and iPad models last month, and analysts expect the company could raise iPhone prices later this year.
Why it matters: Apple's 9–11% revenue growth forecast missed the ~12% analysts expected, and CEO Tim Cook's departure after 15 years adds transition risk as the company navigates an AI-driven memory crunch that already forced price hikes on Macs and iPads.
