Apple Q2 - Solid quarter, iPhone beats

Last week, Apple reported one of its strongest quarters in three years thanks to a solid beat in iPhone sales. Revenues were up by 10%, crushing the street's expectations of 4% growth. Tim Cook said overall revenue in the current quarter will rise by about 8%, which is pretty good. iPhone sales brought in 13% more in Q2, and services was also up by 13%.

Tariffs were a big theme in the commentary. Apple believes that at least 1% of sales growth came from consumers buying now, before expected price increases. As we learned yesterday, India, where most iPhones sold in the US are now made, is in trouble with the Trump administration for buying Russian oil. Regardless of how that all pans out, it won't change our minds about holding Apple for a long time to come.

Apple's AI strategy has been to take a slow and measured approach. They have spent way less than their tech peers on this technology. They are planning to step up the capex a little, which will result in over 20 new Apple Intelligence features, but they remain well behind the pack.

Apple don't like to be first movers, they prefer to be first perfecters. If their hardware is the best at running the software created by others, then they still stand to benefit in a big way. Apple has such a large, loyal, and big-spending user base that AI service providers have to make their product compatible with Apple hardware and software.

We are happy holders of this sleeping giant and continue to expect the stock to deliver solid returns in the years ahead.