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Apple Posts Strong Quarter, Lifts Outlook as Memory Costs and Chip Capacity Tighten

A planned Sept. 1 CEO shift underscores a push to pair bigger buybacks with record AI spending.

Overview

  • Apple reported fiscal Q2 revenue of about $111.2 billion, up 16.6%, and net income of $29.6 billion, lifted by strong iPhone 17 demand and growth in Greater China.
  • Guidance for fiscal Q3 calls for 14% to 17% year-over-year revenue growth with gross margin of 47.5% to 48.5% and operating expense of $18.8 billion to $19.1 billion, assuming stable tariffs and no macro slide.
  • Executives said memory components will cost “significantly more” next quarter, with a larger impact after June as older inventory runs down.
  • Apple cited limited A19-series chip capacity at TSMC and tight memory supply as production bottlenecks that are constraining iPhone and Mac deliveries.
  • The board approved an added $100 billion share buyback and raised the dividend to $0.27 per share, Apple pledged about $3 billion in tariff refunds to new U.S. manufacturing projects, and R&D spending hit a record $11.4 billion focused on AI.