Apple reported better-than-expected earnings and revenue for the fiscal third quarter, largely fueled by a 22% surge in iPhone sales, marking what CEO Tim Cook described as an “incredible blowout” for the iPhone 17 cycle. The company posted earnings per share of $2.02 on revenue of $109.42 billion, surpassing analyst estimates. Mac sales also jumped nearly 29%, driven by strength in the lower-cost MacBook Neo and MacBook Pro, while services revenue hit $30.74 billion despite missing estimates amid foreign exchange headwinds.

However, Apple’s outlook overshadowed its strong results, as the company issued cautious guidance for the current quarter, projecting revenue growth between 9% and 11%, below the 12% anticipated by analysts. Supply constraints, particularly related to a global memory shortage and rising component costs, contributed to the softer forecast. Cook described these supply challenges as “difficult” and “unsustainable,” with memory prices expected to keep escalating, prompting Apple to raise Mac and iPad prices but not yet iPhone prices broadly.

This earnings call was notable as Tim Cook’s final report as CEO before he steps into the executive chairman role on September 1, with John Ternus, Apple’s hardware engineering head and 25-year veteran, set to take the helm. While Ternus spoke minimally during the call, Cook expressed enthusiasm for the leadership transition and the company’s future, citing ongoing innovation including the upcoming launch of a redesigned Siri powered by Google AI technology alongside new iPhone hardware.

Apple’s performance in China continues to impress, with revenue in the region climbing 22% to $18.82 billion, supported by record iPhone sales and the best Mac quarter ever in Greater China. The company is benefitting from competitors raising prices amid the chip shortage, allowing Apple to gain market share without raising iPhone prices significantly in that market. Looking ahead, growth rates are expected to slow, returning to more normalized single-digit expansions in 2027, as Apple balances supply challenges against sustained high demand.