Apple (AAPL) reported its third quarter earnings after the bell on Thursday, beating on the top and bottom lines on better-than-anticipated iPhone sales.
“Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac, and Services and growth around the world, in every geographic segment,” CEO Tim Cook said in a statement.
Apple stock rose following the report.
For the third quarter, Apple saw earnings per share (EPS) of $1.57 on revenue of $94 billion. Wall Street was anticipating EPS of $1.43 on revenue of $89.22 billion, according to Bloomberg consensus estimates. The company saw EPS of $1.40 and revenue of $85.7 billion in the same quarter last year.
Apple’s China sales hit $15.3 billion. Wall Street was expecting $15.1 billion.
Apple’s iPhone revenue topped out at $44 billion versus expectations of $39.8 billion. Services revenue came in at $27.4 billion. Wall Street was looking for $26.8 billion.
Mac revenue topped out at $8 billion, but iPad and Wearables revenue fell year over year to $6.5 billion and $7.4 billion, respectively.
Apple is dealing with a handful of major issues. President Trump has threatened to impose a 25% tariff on iPhones unless Apple begins producing them in the US.
The company could also have to deal with the impact of Google’s antitrust lawsuit on the company’s $20 billion per year agreement to use Google Search as the default option in the Safari browser and Siri.
Read more: Live coverage of corporate earnings
Revenue from that deal falls under Apple’s Services segment. The federal judge overseeing Google’s (GOOG, GOOGL) antitrust case is expected to rule on the “remedies” phase of the trial, which will spell out what the company has to do to correct its monopolistic behavior, in August.
If the judge requires Google to abandon its exclusivity deals, it would put a $20 billion hole in Apple’s Services business.
Apple is also facing continuing criticism for its slow AI rollout. Wedbush analyst Dan Ives has called for the company to purchase AI startup Perplexity AI (PEAI.PVT).
“It’s time for Cook and Cupertino to face the new reality of this quickly morphing AI driven tech landscape … because if they do not change it will be a historic strategic black eye for Apple, in our view,” Wedbush analyst Dan Ives wrote in an investor note ahead of earnings.
BofA’s Mohan offered a similar critique of the company’s AI moves in an investor note Monday, saying that while Apple usually slowplays rolling out new technologies, the fast pace of AI innovation could leave it behind user expectations.
