iPhone sales surged 22% year-on-year, Apple Q3 profit exceeded expectations

Apple released its third-quarter financial report, driven by a 22% year-on-year increase in iPhone sales, with both profit and revenue exceeding market expectations; however, due to service business revenue falling short of estimates, the company's stock price dropped 4% after hours.

Earnings per share: $2.02, higher than analysts' expectations of $1.89;

Total revenue: $109.42 billion, expected $108.65 billion.

Performance of other core business segments of Apple:

iPhone revenue: $54.25 billion, expected $53.86 billion;

Mac revenue: $10.35 billion, expected $8.74 billion;

iPad revenue: $6.19 billion, expected $6.92 billion;

Wearable device revenue: $7.88 billion, expected $7.82 billion;

Service business revenue: $30.74 billion, expected $31.22 billion.

Gross margin: 50.1%. Due to the impact of tariff refunds, this figure is not directly comparable to the analysts' estimate of 47.9%.

Cash reserves: $146.52 billion.

Apple did not provide official performance guidance, which is typically announced during the earnings call. This is also the last time Tim Cook will release financial results as CEO before stepping down, with the position to be taken over by John Ternus. Cook will also discuss Apple's outlook on the ongoing parts shortage issue during the meeting.

Net profit increased from $24.43 billion (earnings per share of $1.57) in the same period last year to $29.79 billion (earnings per share of $2.02). Apple stated that $0.11 of this earnings per share came from tariff refunds.

Apple is facing a global shortage of memory chips, which Cook recently described as "a once-in-a-century severe supply gap." The competition for chip production capacity has forced Apple to raise prices on Mac and iPad products. Apple has not indicated that it will increase iPhone pricing, but many analysts expect that iPhone prices may rise as soon as this year.

Meanwhile, Apple is preparing to launch a new version of Siri, rebuilt using Google technology, alongside the release of new iPhone hardware in September. Current investors are concerned that Apple has fallen behind its peers in the field of artificial intelligence, and the launch of this product will be a critical test.

Even so, Apple has achieved over 15% year-on-year revenue growth for the third consecutive quarter.

Ternus has been with Apple for 25 years and is currently the head of hardware business. After the announcement of the CEO personnel change in April, he spoke very little during the last earnings call, and investors are looking forward to hearing more from him in this meeting