Apple Jumps 4% as iPhone 17, MacBook Neo Beat Forecasts
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- Apple reported fiscal Q2 revenue of $111.18 billion and earnings of $2.01 per share, beating analyst estimates of $109.66 billion and $1.95, sending shares up nearly 4% after hours
- iPhone 17 sales reached $56.99 billion, slightly missing $57.21 billion estimates, as CEO Tim Cook blamed supply constraints on advanced processor chips manufactured using TSMC's leading-edge technology, calling demand "off the charts" but supply "less flexible"
- MacBook Neo, priced at $500 for students, helped drive Mac sales to $8.4 billion versus $8.02 billion estimates, with analysts viewing it as a credible play for the $20 billion lower-priced laptop market dominated by Chromebooks
- Apple forecast fiscal Q3 sales growth of 14% to 17%, well above Wall Street's 9.5% estimate, and authorized a fresh $100 billion share buyback to reassure investors amid its CEO leadership transition
- Services revenue hit $30.98 billion, beating $30.39 billion estimates, while Greater China sales reached $20.5 billion, topping $19.45 billion forecasts, even as Cook warned of "significantly higher memory costs" starting in the June quarter
- CFO Kevan Parekh said Apple is abandoning its 2018 net-cash-neutrality goal, ending the quarter with $54 billion in net cash—a move D.A. Davidson's Gil Luria tied to a new treasury approach as a new CEO prepares to take over
- Cook told analysts Apple is seeking refunds for tariffs paid during the Trump administration and will reinvest those funds into U.S. manufacturing
Why it matters: Apple's $100 billion buyback and 14-17% Q3 growth guidance counter Wall Street anxiety over its CEO transition and AI lag, with the MacBook Neo opening a credible $20 billion Chromebook-adjacent market. But Cook's own warning that memory costs will surge from June and iPhone chip supply remains tight undercuts the 4% after-hours pop—Apple is now demand-constrained, not demand-starved.
