Apple posted impressive third-quarter earnings on Thursday, with revenue growing 10 percent year-over-year, marking the company’s largest quarterly revenue growth since December 2021.
CNBC reports that Apple’s third-quarter earnings report exceeded Wall Street expectations, with the tech giant posting $94.04 billion in revenue and $1.57 in earnings per share. The company’s most important product, the iPhone, saw a 13 percent increase in sales, reaching $44.58 billion. Apple CEO Tim Cook attributed the strong iPhone performance to the popularity of the iPhone 16 compared to its predecessor, with sales of the latest model up “strong double digits.”
In addition to the iPhone’s success, Apple’s Mac business also experienced significant growth, increasing nearly 15 percent to $8.05 billion in revenue. This growth was driven by the release of updated MacBook Air laptops, the company’s best-selling Mac, just before the start of the quarter.
Apple’s services business, which includes warranties, content subscriptions, licensing deals with Google, and iCloud, continued to grow, reaching $27.42 billion in the period, a 13 percent increase. Cook highlighted growth in iCloud subscriptions and noted that App Store revenue grew “double digits” during the quarter.
Despite the overall strong performance, there were a few weaker areas in Apple’s report. iPad sales declined eight percent to $6.58 billion, even with the launch of a low-cost iPad in March. The company’s wearables unit, which consists of Apple Watch, AirPods, and other accessories, also saw an 8.64 percent decline, generating $7.4 billion in revenue.
A notable bright spot for Apple was its performance in China, where sales rose four percent on an annual basis to $15.37 billion, reversing the trend from the previous two quarters. Cook cited a Chinese subsidy for some devices as a contributing factor to the company’s success in the region.
During the earnings call, Cook emphasized Apple’s commitment to investing in AI, stating that the company views the emerging technology as “one of the most profound technologies of our lifetime.” He assured investors that Apple is significantly growing its investments in AI and embedding it across its devices, platforms, and the company as a whole.
When asked about the potential threat of AI devices like those being developed by OpenAI to iPhone sales, Cook expressed confidence that such devices would likely complement the iPhone rather than replace it. He noted that it’s difficult to envision a world where the iPhone doesn’t play a significant role.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
