Apple posts $111.2B Q2 revenue, warns of higher AI memory costs
Apple reported $111.2 billion in second-quarter revenue, a 17% year-over-year increase, with iPhone sales reaching $57 billion, up 22%. Incoming CEO John Ternus will inherit strong core product momentum but faces elevated memory costs and supply constraints driven by AI demand.
1. Record March Quarter Results
Apple delivered its best March quarter ever with $111.2 billion in revenue, marking a 17% increase year-over-year. iPhone revenue reached a record $57 billion, up 22%, while every geographic segment posted double-digit growth.
2. CEO Transition and Leadership Outlook
Tim Cook will step down as CEO in September, passing the role to hardware engineering lead John Ternus. Ternus praised Cook’s disciplined financial approach and plans to maintain that “north star” focus on product quality and profitability.
3. AI-Driven Memory Constraints and Supply Impact
Surging AI demand has strained memory supplies, driving up component costs and prompting Apple to expect supply constraints in the June quarter. The Mac Mini and Mac Studio are likely to face the heaviest impact from these elevated memory prices.