Apple revenue tops estimates even as China sales remain slow

Apple marked a return to revenue growth last quarter, lifted by the long-awaited arrival of new iPads, even as sales remained sluggish in China.

Sales rose 5 per cent to US$85.8 billion in the fiscal third quarter, which ended June 29, the iPhone maker said in a statement Thursday. Analysts had predicted US$84.5 billion on average. Three months ago, Chief Financial Officer Luca Maestri said the company would grow by a percentage in the low single digits during the period.

The upbeat results bring a jolt of momentum to the company ahead of its next iPhone release in September. The tech titan is counting on a new suite of AI features – dubbed Apple Intelligence – to help spur demand for its latest devices.

Earnings amounted to US$1.40 a share in the period, exceeding the US$1.35 analysts had estimated. The third quarter is typically one of Apple’s slowest, coming at a time when many customers are waiting for the next iPhone to arrive in the fall.

The revenue and profit both represented a record for a June quarter, though China remained a weak spot. Sales from that region declined 6.5 per cent to US$14.7 billion, short of the US$15.3 billion that analysts anticipated.

Sales of Apple’s flagship product, the iPhone, came in at US$39.3 billion. Though the number was down slightly from a year earlier, it edged past Wall Street expectations. Three months ago, the company declined to forecast iPhone revenue for the June period – a signal it was still unsure about the shaky smartphone market.