Apple is poised to report its strongest June-quarter sales performance in five years, driven primarily by its choice to keep iPhone prices unchanged while raising costs for other products. The company increased prices on iPads and MacBooks in response to elevated expenses stemming from memory and storage chip shortages tied to major artificial intelligence datacenter expansion projects. However, iPhones, which represent the company’s primary revenue driver, were spared from price increases at a time when rival smartphone manufacturers were forced to pass higher costs to consumers.
The pricing strategy appears to have yielded results. iPhone shipments grew 3%, and the company captured nearly a fifth of global market share, according to estimates from Counterpoint research. The broader smartphone market faced headwinds during the April-June period, with global shipments hitting their lowest level in 13 years as competitors grappled with cost pressures.
Apple’s restraint in the smartphone market, combined with its limited spending on artificial intelligence infrastructure compared to technology peers, contributed to the company reclaiming its position as the world’s most valuable enterprise from Nvidia. Apple shares rose approximately 25% year-to-date and briefly pushed the company’s valuation above $5 trillion earlier this week, significantly outperforming other members of the “Magnificent Seven” stock grouping.
For the April-June fiscal period, Apple is expected to report revenue growth of 15.5% to $108.65 billion, marking the strongest third-quarter expansion since 2021, though slightly slower than the preceding three-month period. Profit growth is anticipated to moderate to 18.1% as gross margin contracts. iPhone sales are projected to increase 20.8%, also the strongest third-quarter performance since 2021. Mac revenue growth is expected to accelerate to 8.7%, while iPad sales may slow slightly to 5.2%.
Analysts anticipate Apple will raise prices when it introduces its next iPhone series, typically scheduled for September. Some investors and industry observers have expressed concerns that higher valuations limit room for demand disappointment, though research indicates that iPhone demand has historically proven relatively insensitive to price changes.
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