Apple Guides 14–17% June Quarter Growth Despite Margin Pressure
MSFT•Apple posted record quarterly revenue of $111.2B, a 17% increase year-over-year, driven by a 22% surge in iPhone sales to $57B despite supply constraints. Management guided June-quarter revenue growth of 14–17% under similar constraints and cautioned that significantly higher memory costs may pressure gross margins beyond their 32.6% margin peak.
1. Strong Quarterly Revenue Growth
Apple delivered record revenue of $111.2B in the March quarter, up 17% year-over-year, lifting its twelve-month growth rate to 12.8%, well above the three-year average of 5.6%.
2. Record iPhone Sales Under Constraints
iPhone revenue climbed 22% to a record $57B, fueled by extraordinary demand for the iPhone 17 lineup, with management noting that supply constraints limited potential sales.
3. Margin Pressure From Higher Memory Costs
The company warned of significantly higher memory costs in the June quarter that could erode gross margins, testing an operating margin already at a three-year peak of 32.6%.
4. Guidance and Outlook
Apple forecast June-quarter revenue growth of 14–17%, explicitly assuming ongoing supply constraints, highlighting strong underlying demand but stressing the importance of supply chain improvements and cost controls.
