Apple\’s iPhone sales surge, boosting profits beyond expectations

Apple Surpasses Expectations in June Quarter Report

Apple Inc. announced financial results for the quarter ending June 20, 2024, revealing a $23.4 billion net profit that eclipsed analyst forecasts. The technology giant reported total revenue of $94 billion, setting a new record for a period that typically experiences slower growth.

Key Highlights

• Revenue growth: Apple’s sales surged by double digits across its iPhone, Mac, and Services divisions, with expansion observed in every geographic segment.
• iPhone sales: Revenue from iPhone units rose to $44.6 billion, up from $39.3 billion a year earlier.
• Services expansion: The company’s Services segment, which offers digital content and subscriptions, grew to $27.4 billion.
• Share performance: Apple shares gained more than two percent in after‑market trading.

Global Smartphone Market

Global smartphone shipments fell slightly, registering 288.9 million units in the most recent quarter. Samsung maintained its lead with 57.5 million units, while Apple’s iPhone shipments decreased two percent to 44.8 million units.

Trade Tariff Impact

CEO Tim Cook noted that U.S. tariffs imposed by former President Donald Trump cost Apple $800 million during the quarter. Cook explained that Apple is shifting a larger share of its iPhone production to India to counter rising import duties and to navigate an evolving trade war with China. Indian manufacturing continues to rise, though iPhones produced in mainland China remain the majority of U.S. shipments.

China Market Performance

In China, iPhone revenue grew to $15.4 billion in the quarter, up from $14.7 billion a year previously.

Apple’s robust performance demonstrates resilience amid fierce competition in China and a swift inventory adjustment in the U.S. amid fluctuating tariffs.