Apple Sets Q2 Record Despite Supply Chain Problems

In its fiscal second quarter, Apple reported revenue of $111.1 billion, up 17% year over year, and above analyst expectations of $109.6 billion. Net income of $29.5 billion grew by 17%.

Driven by demand for its iPhone 17 family of devices, outgoing CEO Tim Cook stated that customer enthusiasm for iPhone has been extraordinary, with revenue growing 22% year-over-year to achieve a March quarter record. Revenue for the iPhone totalled $56.9 billion, slightly below analysts’ estimates of $57.2 billion.

Greater China posted revenue of $20.4 billion to beat analysts’ forecast of $18.9 billion. “We are thrilled with the performance in greater China,” Cook said. “If you look at the individual products, the iPhone was the top-selling model in urban China.”

Cook said the March supply constraints were primarily driven by the lack of advanced nodes on which its SOCs are produced, and not related to memory. He noted that those constraints are continuing in the current quarter. Service revenue of $30.9 billion hit an all-time high, up 16% from a year earlier. CFO Kevan Parekh said Apple’s installed base of over 2.5 billion active devices reached another all-time high.