Apple sales rise 16% as iPhone demand jumps

Apple sales rose 16 percent to $109.4 billion in the April-through-June period, led by stronger iPhone and Mac sales, while profit climbed 27 percent to $29.8 billion.

The Cupertino-based company said iPhone sales jumped 22 percent to $54.3 billion as customers upgraded to newer models. Mac revenue rose 29 percent, and Apple's services business, including the App Store, iCloud, Apple Music and advertising, grew 12 percent to $30.7 billion.

Shares in Apple dropped by nearly five percent in after-hours trading after the services figure came in below expectations.

Chief executive Tim Cook said Apple had reported its strongest June quarter, with double-digit revenue growth across iPhone, Mac and services and in every geographic segment.

The results came before a planned leadership change. John Ternus will take over as Apple chief executive on September 1, with Cook becoming executive chairman of the iPhone maker's board. Cook has led Apple since 2011.

Apple's performance was also helped by a rebound in China and refunds of tariffs imposed last year by Donald Trump and overturned by the US Supreme Court in February.

A major concern for Apple's business is rising memory chip prices, a key component for electronics. Apple raised prices for Mac computers and iPad tablets in June, citing memory and storage costs linked to artificial intelligence demand, but spared the iPhone.