Apple’s iPhone sales fall in June quarter, but iPad, services grow as tech giant beats forecasts

iPhone sales fell again, but Apple saw gains in services and other devices, led by the iPad, which saw sales jump 24% following the launch of its latest iPad Pro and iPad Air models in the second quarter.

The tech giant’s revenue rose 5% to $85.8 billion, topping Wall Street forecasts and a record for the June quarter.

Earnings per share were $1.40, up 11%.

Revenue in services, which includes streaming services Apple TV+, Apple Music, Apple Fitness and a growing list of other apps, rose about $3 billion to $24.2 billion.

iPhone sales, down 1%, are key because they were weaker in major markets including the U.S. and China. Investors are hoping the June quarter was the weakest and that revenue will start to rebound from there. Apple is set to release the iPhone 16, its latest model, in September.

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Over time, the phone will be equipped with AI capabilities as part of the rollout of Apple Intelligence, the company’s personal AI platform that will be used across its devices and services.

“Today, Apple is reporting a new record for June quarter revenue of $85.8 billion, up 5% year over year,” said CEO Tim Cook. “During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the center of iPhone, iPad and Mac. We can’t wait to bring these tools to our users and continue to invest significantly in innovations that enrich the lives of our customers, while driving the values ​​that drive our work.”

Added CFO Luca Maestri: “During the quarter, our record business results generated 11% EPS growth and nearly $29 billion in operating cash flow, allowing us to return more than $32 billion to shareholders. We are also very pleased that our installed base of active devices reached new all-time highs across all geographies, driven by very high levels of customer satisfaction and loyalty.”