Apple, the manufacturer of the iPhone, announced on 31st (local time) that it recorded a revenue of $94.44 billion (131.74 trillion won) in the second quarter (April to June, fiscal year third quarter) and a net profit per share of $1.57.
Revenue and net profit per share exceeded Wall Street estimates of $89.53 billion and $1.43, respectively, compiled by market research firm LSEG.
Revenue increased by 9.6% compared to the same period last year. This is the highest growth rate since the fourth quarter of 2021 (October to December).
Apple had previously projected that the revenue growth rate would be in the low to mid-single digits due to an anticipated tariff burden of $900 million in the second quarter.
iPhone sales accounted for nearly half of total revenue and drove growth. In the second quarter, iPhone sales reached $44.58 billion, a 13% increase from a year ago, surpassing market expectations of $40.22 billion by more than 10%.
The service sector's revenue, which has a growing share, also increased 13% to $27.42 billion from a year ago, exceeding the estimate of $26.8 billion. Mac sales rose nearly 15% to $8.05 billion, surpassing the estimate of $7.26 billion. The total margin rate also stood at 46.5%, above the estimate of 45.9%.
However, iPad revenue was $6.58 billion, falling short of expectations of $7.24 billion. Other product sales, including the Apple Watch, also came in lower at $7.4 billion compared to the estimate of $7.82 billion.
Tim Cook, Apple's Chief Executive Officer (CEO), noted in an interview with the U.S. economic media CNBC that "it was an exceptionally strong quarter by any measure," adding that about 1 percentage point of the revenue growth rate was due to "customers pre-purchasing products out of concern for future tariffs."
He emphasized that the strong performance in iPhone sales was because "the iPhone 16 is more popular than the iPhone 15 that was sold during the same period last year," stating, "Sales of the iPhone 16 showed double-digit growth compared to the previous model, and there was strong upgrade demand from existing iPhone users."
Apple also achieved good performance in the Chinese market, where competition with local companies has intensified and sales have fallen. Revenue in China, including Hong Kong and Taiwan, recorded $15.37 billion, a 4% increase compared to the same period last year.
CEO Cook mentioned that the Chinese government's subsidy policies for some products have helped improve Apple's performance.