This article first appeared on GuruFocus.
Apple (AAPL, Financials), the consumer technology company, is expected to post its strongest June-quarter sales growth since 2021 as steady iPhone prices support demand.
Warning! GuruFocus has detected 10 Warning Signs with XBRU:ABI.
Is AAPL fairly valued? Test your thesis with our free DCF calculator.
Revenue is projected to rise 15.5% to $108.65 billion for the fiscal third quarter. iPhone sales are expected to increase 20.8%, also marking their fastest third-quarter growth in five years.
Apple kept iPhone prices unchanged even as memory and storage shortages pushed up costs across the smartphone industry. The decision helped iPhone shipments rise 3% and lifted Apple's global market share to nearly 20%.
The company raised prices on some Mac and iPad products, but demand has remained relatively resilient. Mac revenue is expected to grow 8.7%, while iPad sales are forecast to rise 5.2%.
Profit is projected to increase 18.1%, though gross margin may slip to 47.9% from 49.3% in the previous quarter.
Apple has also benefited from avoiding the heavy data center spending seen across Big Tech. Its shares are up nearly 25% this year.
Investors will now watch margins, iPhone pricing and whether Apple can maintain growth without weakening demand.