Apple Reports Turnaround with Sales Boost in Third Quarter

Apple reported a return to sales growth in its fiscal third quarter, driven by stronger-than-expected iPhone revenue. Overall revenue rose 4.9% to $85.78 billion, despite a substantial decline in China. Future success hinges on AI development costs and consumer upgrades.

Apple on Thursday reported a milestone turnaround with sales growth in its fiscal third quarter, buoyed by iPhone revenue surpassing Wall Street expectations, which partly offset a larger-than-anticipated sales slump in China. Shares of the tech giant saw a nearly 1% increase in extended trading.

The company's revenue climbed 4.9% to $85.78 billion in the quarter ending June 29, beating the average analyst forecast of $84.53 billion, according to LSEG data. While iPhone sales dipped 0.9% to $39.30 billion, it was a smaller decline than the predicted 2.2%, reflecting a surge in demand ahead of new AI feature rollouts.

Chief Financial Officer Luca Maestri noted the iPhone results exceeded internal expectations from three months ago, crediting the performance of the iPhone 15 series. Despite an overall 6.5% decline in China sales, versus an 8.1% drop previously, the company continues to face challenges in its third-largest market.

(With inputs from agencies.)