Apple’s IPhone Sales Down In June Quarter But IPad, Services Grow As Tech Giant Beats Forecasts

Jill Goldsmith
2-min read

Apple saw iPhone sales dip again but showed gains across services and other devices led by iPad, where sales jumped 24% after the latest iPad Pro and iPad Air came to market in the June quarter.

The tech giant saw revenue rise 5% to $85.8 billion, ahead of Wall Street forecasts and a record for the June quarter.

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EPS of $1.40 was up 11%.

Revenue at services, which houses streamer Apple TV+, Apple Music, Apple Fitness and a growing list of other apps, jumped by about $3 billion to $24.2 billion.

IPhone sales, down 1%, are key as they’ve been softer in big markets including the U.S. and China. Investors hope the June quarter was a low point and revenue will start to rebound from here. Apple is set to release the iPhone 16, its latest, in September.

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The phone will include artificial intelligence features over time as part of the rollout of Apple Intelligence, the company’s personal AI platform, that will manifest across its devices and services.

“Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5% from a year ago,” said CEO Tim Cook. “During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work.”

Added CFO Luca Maestri: “During the quarter, our record business performance generated EPS growth of 11% and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholder. We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty.”

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