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Apple forecasts Q3 sales growth above expectations
Apple forecast third-quarter sales growth of 14% to 17% through June, above the 9.1% analysts expected after reporting results that beat estimates despite industrywide component shortages.
Revenue rose 17% to US$111.2 billion in the quarter ended March 28.
Its earnings came in at US$2.01 a share. Apple also approved a US$100 billion stock buyback and raised its dividend.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Apple’s next CEO points to a hardware-first path
- Apple plans to name longtime hardware chief John Ternus CEO on September 1, 2026, replacing Tim Cook 1.
- Ternus has spent 25 years at Apple and helped lead the shift to Apple Silicon, the custom chips used across its devices 1.
- His promotion fits the view that AI will be built through devices and software that work closely together, instead of leaning on cloud services in remote data centers 2.
- Apple is taking that route while it lags rivals in AI, with a more capable Siri still delayed and timing now slipping into 2026 3.
Financial strength gives Apple more time in AI
- A US$100 billion buyback plus Apple’s cash position give it room to stick with a slower AI plan built around hardware, even as rivals pour money into chips and data centers 2.
- The company also has a built-in edge through an installed base of more than 1 billion devices, a reach AI startups do not have 1.
- New products support that push, including the US$599 MacBook Neo, an entry-level Mac meant to bring more buyers into Apple’s mix of devices and services 4.
- The open issue is whether that integrated approach can win over people who already rely on rival AI products 1.
