May 01, Kathmandu - Apple has reported better-than-expected sales and profits in its second financial quarter, prompting the company to revise its revenue outlook upward for the current period. Following the positive results, Apple's shares rose nearly 3 percent.

Despite missing expectations in iPhone sales for the second time in three quarters, the company's revenue increased by 17 percent year-over-year to $95.4 billion. This marks Apple's first public financial report since CEO Tim Cook announced his resignation after 15 years at the helm.

Looking ahead, Apple projects revenue growth of 14 to 17 percent in the next quarter, surpassing analyst expectations of 9.5 percent growth to $103 billion. The company's board has authorized an additional $100 billion share buyback and increased cash dividends by 4 percent to 27 cents per share.  

iPhone sales rose 22 percent year-over-year, despite supply chain disruptions caused by rising AI demand and a global shortage of memory chips. Apple also faces supply issues in its Mac and iPhone divisions, with CFO Kavan Parikh noting that supply constraints will likely persist, affecting costs in the current quarter.  

Apple announced new products in March, including the iPhone 17 series, M-4 chips, the new iPad Air, and a budget-friendly MacBook NEO priced at $599.  

Investor focus now shifts to incoming CEO Jony Terns, who will succeed Tim Cook in April and become Executive Chairman in September. Terns, who has overseen Apple's hardware division, described this as the most exciting time in his 25-year career at Apple, emphasizing the importance of AI development, including partnerships with Google on the Gemini AI model to enhance Siri.  

Service revenue grew 16 percent, driven by over 2.5 billion active devices using Apple Pay, iCloud, and AppleCare, contributing to a profit margin of nearly 50 percent. Greater China sales increased 28 percent to $20.5 billion, making it Apple's third-largest market after the U.S. and Europe.  

Research and development expenses surged 33 percent to $1.14 billion, reflecting Apple's focus on AI investments, with CFO Parikh highlighting the strategic importance of AI for the company's future growth.