Apple posted record March-quarter revenue of $111.2 billion in its fiscal second quarter, up 17% from a year earlier. The iPhone drove the gains, with sales hitting $57 billion—a 22% jump despite supply bottlenecks on advanced chips. Services revenue reached a new high at $31 billion, up 16%. Diluted earnings per share came in at $2.01, beating Wall Street’s $1.96 forecast and climbing 22% year over year. Net income stood at $29.6 billion.
But the real draw on the April 30 earnings call? John Ternus, the hardware engineering chief set to replace Tim Cook as CEO on September 1. Cook, after 15 years at the helm, will shift to executive chairman. Investors tuned in for Ternus’s first public remarks since the transition news broke earlier this month.
Ternus didn’t disappoint. He called this “the most exciting time in my 25-year career at Apple to be building products and services.” The roadmap? “Incredible,” he said, though details stayed locked away. 9to5Mac captured his full debut: “We have an incredible roadmap ahead, and while you’re not gonna get me to talk about the details of that roadmap, suffice it to say… there are so many opportunities before us.”
Cook handed over the mic with full endorsement. “There is no one on this planet I trust more to lead Apple into the future than John Ternus,” he declared, per Gizmodo. He touted the iPhone 17 family as Apple’s most popular lineup ever—even powering NASA’s Artemis mission. Greater China sales soared 28% to $20.5 billion, a bright spot amid U.S.-China tensions.
Hardware Muscle Meets Financial Discipline
Ternus, 50, joined Apple in 2001 straight out of college. He’s overseen the shift to Apple silicon, iPhone 12 through 17 launches, and Vision Pro. Fans see him as the fix for perceived innovation lulls under Cook. No more car project flops or Siri stumbles, they hope.
Yet Ternus pledged continuity. With CFO Kevan Parekh, he’ll stick to Cook’s “deep thoughtfulness, deliberateness, and discipline” on finances. Apple authorized another $100 billion in buybacks and hiked its dividend 4%. Operating cash flow hit $28.7 billion. Gross margins expanded to 49.3%, up 80 basis points, though memory costs loom as a drag.
Mac revenue rose to $8.4 billion, up from $7.95 billion, but supply limits pinched hardest there. iPad fetched $6.9 billion; wearables, $7.9 billion. Every region posted records. Emerging markets like India doubled down.
And the stock? Shares climbed 3% in after-hours trading, per CNBC. Guidance for the June quarter topped estimates: revenue growth of 14% to 17%, gross margins 47.5% to 48.5%.
Challenges persist. Supply constraints on iPhone and Mac will linger into summer. AI lags irk observers—personalized Siri delays sparked lawsuits and fan backlash, as Gizmodo noted. Google and Microsoft pull ahead while Apple paces itself.
Handover in High Gear
Cook reflected on his run. “Never forget that Apple users are the North Star for the company,” he said. Focus on top products to enrich lives, and the business follows. Straight from Steve Jobs playbook.
Ternus echoed that. Grateful to Cook and the team. Optimistic. Ready. Wall Street meets the engineer. Markets liked the preview.
Expect foldables soon—Ternus’s wheelhouse. iPhone upgrades show no signs of slowing; active base at all-time highs. Services keep humming, subscriptions fueling steady cash. But execution on that secret roadmap? That’s Ternus’s first test. Supply snags ease or not. AI catches up. China stays hot.
Apple’s machine churns. Transition or not, numbers don’t lie. Q2 smashed records. Investors bet on the hardware guy to keep it rolling.
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