Apple reported a 17% jump in global sales to $111 billion on Thursday, driven by a 28% surge in China that outpaced every other region. Outgoing Chief Executive Tim Cook called demand for the iPhone 17 'extraordinary,' declaring it the most popular launch in the company's history. The results set a high bar for incoming CEO John Ternus, who takes over on September 1.
The China numbers tell a story of their own. Revenue from the region rocketed to new heights, making the iPhone 17 a blockbuster in a market where Apple has faced stiff local competition and geopolitical headwinds. A 28% sales increase is not just a rebound.
It is a statement. For working families in both countries, the numbers mean supply chains are humming and trade ties remain deeply linked, no matter the political rhetoric. Cook, speaking to financial analysts on his final earnings call as chief executive, did not hold back. 'Recent demand for the iPhone has been extraordinary,' he said.
The device, he noted, achieved the 'most popular launch in [Apple's] history.' The policy says one thing. The reality says another. While Washington and Beijing trade barbs over tariffs and technology transfers, consumers in Shanghai and Shenzhen are lining up to buy American-designed phones.
Not every product line shared the iPhone's momentum. Sales of Mac computers and wearable devices like the Apple Watch remained relatively flat. But one exception broke through the static.
Cook pointed to the new Macbook Neo, a laptop sold at a significantly lower price point than its siblings. Demand was 'off the charts,' he said. The quarter set a record for first-time Mac buyers.
A cheaper entry point opened the door. New users walked through it. What this actually means for your family is a shift in Apple's strategy.
The company is not just selling premium devices to loyal fans. It is building an on-ramp. A student in Guadalajara or a small business owner in Miami can now enter the Apple ecosystem for less money.
That is a long-term play for loyalty, not a quick revenue grab. Beyond hardware, Cook laid out a vision for artificial intelligence that stands apart from the industry's spendthrift norms. Apple Intelligence, the company's AI system, will be updated later this year and integrated directly into the Siri voice assistant. 'This is not AI as a standalone feature, but AI as an essential and intuitive part of our devices,' Cook said.
Instead of pouring hundreds of billions of dollars into building its own massive AI model, Apple has partnered with OpenAI and Google. Their technology powers some Apple features under the hood. Critics have labeled Apple a late-mover.
But the strategy insulates the company from catastrophic losses if the AI bubble deflates. A factory owner in Monterrey does not care about model parameters. He cares if his phone works reliably and keeps his data safe.
Apple is betting on that pragmatism. The call marked a symbolic passing of the baton. Cook, who will move to the role of chairman, praised his successor, longtime hardware executive John Ternus. 'I know he will push us to go further than we think is possible in order to deliver products for our users,' Cook said.
Ternus, speaking to analysts for the first time, promised to maintain Cook's financial 'discipline' and teased future products. That transition happens on September 1. Ternus inherits a money-printing machine.
But he also inherits a complex global chessboard. China is a critical market. Trade tensions are a persistent risk.
His first test will be sustaining the China momentum while navigating a relationship that can turn hostile overnight. Reddit also posted quarterly results on Thursday. The numbers were staggering.
Revenue hit $663 million, a 69% jump. Ladd Huffman, the platform's chief executive, noted that 200 million people in the United States visit Reddit every week. That is more than half the country's population.
The goal is much bigger. Huffman wants that many Americans on the site every single day. The ultimate target is one billion daily active users worldwide. '[Daily active users] is both our mission and also fuel for the business,' Huffman said.
The business fuel has a new additive: artificial intelligence. Reddit's sprawling conversations have become a critical source of training data for AI companies. These firms 'scrape' or harvest material from the web to train chatbots.
Reddit now charges them for access. Deals with OpenAI and Google are already in place. Huffman believes the value of Reddit's human chatter will only increase as the rest of the internet becomes 'optimised for AI.' He put it bluntly: 'At the end of the day, there is no artificial intelligence without actual intelligence.'
Both sides claim victory. Here are the numbers. Reddit's 69% revenue growth is not just advertising.
It is data licensing. The company has turned its users' arguments, advice, and confessions into a product that the world's most powerful tech companies need. A teenager in Fresno asking for relationship advice on a forum is now, indirectly, a supplier to Google's next AI model.
The economic model has shifted. Content is no longer just for clicks. It is raw material for machine learning.
Roblox, the online gaming platform, saw a very different reaction. Shares fell 20% in after-hours trading. The company grew its user base and revenue.
But the growth was not enough. Chief Executive David Baszucki explained in a letter to investors that stricter age checks had created 'greater-than-expected headwinds.' The new system restricted communication for unverified users and diluted the experience for those who were verified. New user acquisition slowed. 'We believe growth was tempered,' Baszucki wrote.
Investors also recoiled at a lowered financial forecast. Roblox expects to make less money this year than initially planned. The company has not recorded a profitable quarter since going public in 2021.
The market's patience is thinning. A platform beloved by children faces a hard adult question: when will the spending stop outpacing the earnings? Why It Matters: Apple's China surge demonstrates that consumer demand can defy geopolitical gravity, but Ternus must now prove he can keep the engine running in an unpredictable trade environment.
Reddit's AI data deals turn everyday conversations into a lucrative asset class, raising new questions about user privacy and the value of human expression. Roblox's age-check stumble is a warning for any platform relying on young users: safety measures can slow growth, and Wall Street has a short memory for good intentions. - Apple's China sales grew 28%, making the iPhone 17 the company's most successful launch ever and proving consumer ties outlast political fights. - Reddit's 69% revenue surge is powered by selling user conversations to AI firms like Google and OpenAI, turning forums into a data goldmine. - Roblox shares crashed 20% after stricter age checks slowed user growth and the company cut its annual financial forecast, remaining unprofitable. - Incoming Apple CEO John Ternus takes charge on September 1, inheriting a record-breaking business and a delicate US-China balancing act. The next three months will test the narratives.
For Apple, all eyes turn to Ternus's first product event in the fall. He must show that the 'incredible roadmap' is not just a line for analysts. For Reddit, the push to one billion daily users is a marathon.
The immediate question is whether AI data deals can sustain triple-digit growth rates or if they are a one-time sugar rush. Roblox faces a reckoning. It must prove it can verify users, keep them engaged, and finally chart a path to profitability.
The clock is ticking.
Key Takeaways
— - Apple's China sales grew 28%, making the iPhone 17 the company's most successful launch ever and proving consumer ties outlast political fights.
— - Reddit's 69% revenue surge is powered by selling user conversations to AI firms like Google and OpenAI, turning forums into a data goldmine.
— - Roblox shares crashed 20% after stricter age checks slowed user growth and the company cut its annual financial forecast, remaining unprofitable.
— - Incoming Apple CEO John Ternus takes charge on September 1, inheriting a record-breaking business and a delicate US-China balancing act.
Source: BBC News
