Apple shares surged nearly 4% in after-hours trading on Thursday after the tech giant reported strong demand for its flagship iPhone 17 and the budget-friendly MacBook Neo, alongside announcing a massive $100 billion share buyback programme.
Peshawar Zalmi to Face Hyderabad Kingsmen in PSL 11 Final at Gaddafi Stadium
The upbeat outlook comes despite ongoing supply chain challenges, particularly constraints in advanced processor chips and rising memory costs. Chief Executive Tim Cook said demand for the latest iPhone lineup was “off the charts,” but supply limitations affected overall sales performance.
Apple forecast revenue growth of 14% to 17% for the current fiscal third quarter, significantly exceeding Wall Street expectations of around 9.5%, according to data from LSEG.
In the fiscal second quarter ending March 28, Apple posted revenue of $111.18 billion and earnings of $2.01 per share, beating analyst estimates. iPhone sales reached $56.99 billion, slightly below expectations, while Mac sales — boosted by the newly launched MacBook Neo — totaled $8.4 billion.
The lower-cost MacBook Neo, priced at $500 for students, is seen by analysts as a strategic move to compete with devices powered by Google’s Chromebook ecosystem and tap into a growing affordable laptop market.
Apple’s services segment, which includes the App Store, generated $30.98 billion in revenue, surpassing forecasts. Meanwhile, sales in Greater China reached $20.5 billion, also exceeding expectations and signaling resilience in a key market.
However, the company warned that rising memory chip costs could weigh on margins in upcoming quarters. Apple projected gross margins between 47.5% and 48.5% for the June quarter, slightly lower than the 49.27% recorded in the previous period.
Cook also noted that Apple is seeking refunds for tariffs imposed during the administration of Donald Trump, with plans to reinvest any recovered funds into U.S. manufacturing.
Looking ahead, Apple is expected to unveil further details of its artificial intelligence strategy at its annual developer conference in June, as competition intensifies across the tech industry
