Apple’s IPhone Sales Down In June Quarter But IPad, Services Grow As Tech Giant Beats Forecasts

Apple saw iPhone sales dip again but showed gains across other devices led by iPads after the latest edition was unveiled in the June quarter.

The tech giant saw revenue up 5% at $85.8 billion, ahead of Wall Street forecasts.

EPS of $1.40 was up 11%.

Services revenue, which house streamer Apple TV+, music and a growing list of apps, jumped by about $3 billion to $24.2 billion.

IPhone sales are key for the quarters as sales have been softer in the U.S. and China and investors are hoping the June quarter was a low point and they’ll start to rebound now. There are great expectations on that front as Apple is expected to release the iPhone 16, its latest, in September with artificial intelligence features likely to follow.

The company recently unveiled iOS 18 with Apple Intelligence and an AI partnership with OpenAI.

“Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago,” said Tim Cook, Apple’s CEO. “During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work.”

“During the quarter, our record business performance generated EPS growth of 11 percent and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholders,” said Luca Maestri, Apple’s CFO. “We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty.”

Execs are hosting a call at 5 pm ET.

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