Apple’s third-quarter revenue has risen despite declining demand for iPhones

Apple posted a 5% increase in sales year on year to reach $85.8bn (£67.36) for the three months to June 29, 2024.

Sales were up across all geographies except China as demand in Apple’s third-largest market dipped.

In terms of product, total net sales of all products were up from $81.8bn (£64.25bn) last year to $85.7bn this year (£67.32bn), with sales of iPads and Macs rising despite a continued fall in iPhone sales during the quarter.

Apple’s services arm, which includes the likes of Apple Pay, Apple TV+ and the App Store, also saw a surge in sales from $21.2bn (£16.65bn) to $24.2bn (£19.01bn), reaching an “all-time high”.

The news comes ahead of the launch of Apple’s iPhone 16, which investors have said should drive a surge in demand for the product as customers are keen to get their hands on its new artificial intelligence features.

Apple chief executive Tim Cook said: “Apple is reporting a new June quarter revenue record of $85.8bn, up 5% from a year ago.

“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 core of iPhone, iPad and Mac.

“We very much look forward to sharing these tools with our users and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work.”

Apple chief financial officer Luca Maestri added: “During the quarter, our record business performance generated earnings per share growth of 11% and nearly $29bn in operating cash flow, allowing us to return over $32bn to shareholders.

“We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty.”