Apple Set for Strongest June-Quarter Sales Growth in Five Years
Synopsis
Apple is expected to report its strongest June-quarter revenue growth since 2021 as steady iPhone prices and stronger shipments boost sales ahead of its latest earnings report.
Key Highlights
- Apple likely reports the biggest June-quarter revenue jump in five years.
- iPhone and stable iPhone prices expected to drive revenue growth.
- Investors are waiting to see if Apple cuts iPhone prices this year.
Apple is expected to report its strongest June-quarter sales growth in five years after keeping iPhone prices unchanged despite rising component costs.
Last month the company did raise prices for iPads and MacBooks, citing demand from AI data centres pushing up memory and storage chip costs, but not for phones.
iPhone Drives Growth
The iPhone pricing decision helped Apple do better than its rivals, most of which raised smartphone prices as rising costs led to a reduction in global smartphone shipments for the April-June quarter to their lowest level in 13 years.
iPhone shipments were up 3%, while Apple smartphone share was nearly 20% as per Counterpoint. As investors weigh worries about Nvidia’s heavy AI spending, Apple has reclaimed the title of world’s most valuable company. The company shares gained about 25% this year and on Tuesday briefly pushed its market value above US$5 trillion for the first time.
Investors Watching Pricing Strategy
Apple faces expectations of revenue of US$108.65 billion for the April-June quarter, a 15.5% rise from the same period last year, and its best fiscal third-quarter sales growth since 2021, analysts have calculated.
Profit is expected to increase 18.1%, while gross margin is likely to drop, reaching 47.9% from 49.3% in the last quarter.
Analysts also expect that Apple will raise the price of each iPhone when it introduces its next iPhone lineup, usually in September. Earlier this month, Apple raised prices for Apple Music and its Apple One subscription bundle.
Product Sales Outlook
Analysts anticipate iPhone revenue to increase 20.8%, the best Q3 growth for iPhones since 2021. Mac revenue is expected to grow 8.7%, up from 5.7% in the previous quarter, even with higher prices. iPad sales growth is expected to fall to 5.2% from 8% in the last quarter.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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