Apple beats estimates as MacBook boom offsets iPhone supply crunch
Apple beats estimates as MacBook boom offsets iPhone supply crunch
Publish Date: 2026-05-01 01:26:00
Source Domain: www.thenationalnews.com
Apple on Thursday reported results that beat Wall Street estimates, with customers showing eagerness to buy a new MacBook model driven by incoming chief executive John Ternus, while supply constraints hindered iPhone sales.
Apple said sales and profits were $111.18 billion and $2.01 per share for the fiscal second quarter ending March 28, above analyst expectations of $109.66 billion and $1.95 per share, according to LSEG. Sales of the iPhone, still the company’s best-selling product nearly 20 years after its introduction, were $56.99 billion, slightly less than estimates of $57.21 billion, according to LSEG data, after the biggest revamp of the line-up since the iPhone X in 2017.
Apple shares were down about 1 per cent in after-hours trading.
Less supply chain flexibility
Outgoing Apple chief executive Tim Cook said iPhone sales were held back in the quarter by supply constraints for the advanced processor chips that form the brains of the device. The iPhone 17 family’s chips are made on a variant of the same Taiwan Semiconductor Manufacturing Co chip manufacturing technology as many leading AI chips.
“The demand was off the charts. And there’s just a little less flexibility in the supply chain at the moment for getting more parts,” Mr Cook told Reuters.
The iPhone 17 family of devices, plus the iPhone Air, was spearheaded by incoming chief Mr Ternus, who will take over from Mr Cook in September. Under Mr Ternus, Pro models gained more features but also a higher price tag, while entry-level models such as the 17e and base model iPhone 17 held prices steady relative to their storage capacity.
That strategy, along with massive buying power, has helped Apple navigate higher memory chip prices. Apple said gross margins were 49.27 per cent, above estimates of 48.38 per cent, according to LSEG data. Another product masterminded by Ternus was the MacBook Neo, which costs $500 for students. Analysts believe it could help Apple crack a new $20 billion market…
