Apple has delivered a stronger-than-expected sales forecast for the current quarter, buoyed by robust demand for its latest devices, including the iPhone 17 lineup and the newly introduced MacBook Neo.
The technology giant said revenue is expected to grow between 14% and 17% in the fiscal third quarter ending in June, well above analysts’ average estimate of 9.1%. The upbeat outlook sent Apple shares sharply higher, rising more than 5% in New York trading on Friday.
The strong forecast offers an encouraging start for John Ternus, who will succeed Tim Cook as chief executive on September 1. Ternus, a longtime Apple executive, said the company has an “incredible road map ahead” and described the current period as the most exciting of his 25-year career at Apple. Cook, who has led the company for 15 years, will remain as executive chairman.
Apple’s latest quarterly results also exceeded expectations. Revenue for the fiscal second quarter, which ended March 28, climbed 17% to $111.2 billion, ahead of Wall Street estimates of $109.7 billion. Earnings rose to $2.01 per share, topping forecasts of $1.96.
Demand has been fuelled by a wave of product launches in March, including the MacBook Neo, iPhone 17e, updated iPad Air models and a refreshed MacBook Pro. The MacBook Neo, priced at $599, has emerged as a standout success, opening Apple to the lower-cost laptop market. The device has sold out at several retailers and remains in short supply.
Tim Cook said Apple had underestimated demand for the MacBook Neo, as well as for the Mac mini and Mac Studio, which have become increasingly popular for running artificial intelligence applications. Supply shortages for those Mac models are expected to continue for several months.
“We’re not at the point where we’re saying this is going to end anytime soon,” Cook said, referring to ongoing supply constraints.
Apple also warned that memory chip costs are set to rise significantly in the coming quarters, which could place pressure on margins. While the company has so far managed the impact through existing inventory, Cook said higher costs would increasingly affect the business later this year.
The iPhone remained Apple’s largest revenue driver, with sales rising 22% to $57 billion. Mac revenue reached $8.4 billion, while iPad sales totalled $6.9 billion. The company’s services division, which includes the App Store, iCloud, Apple Music and streaming services, generated $31 billion in revenue, up 16% from a year earlier.
China was another bright spot, with revenue in the region surging 28% to $20.5 billion, well ahead of expectations.
Apple also announced a new $100 billion share buyback programme and an increase in its dividend, signalling continued confidence in its financial strength as it prepares for a new leadership era.
