iPhone 17 carried Q3, but services missed — here's why I'm still holding

$AAPL just printed $109.4B revenue (+16% YoY) and $2.02 EPS (+29% YoY) for the June quarter. iPhone revenue was the story: $54.3B, up 22%, on iPhone 17 demand, and Mac grew 29% despite node constraints. The wart: Services came in at $30.7B, missing the ~$31.2B Street estimate, even with records across every services category. Management guided September-quarter services growth to look similar to June once you strip out ~2.5pp of FX drag. Hardware is doing the heavy lifting right now; services needs to catch up before the multiple re-rates higher. Long and adding on weakness.

4 comments

Comments (4)

u/compute_cole12h
Curious if the services miss is an FX story or an actual demand slowdown once you back out currency
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u/capex_carla12h
Fair, but multiple expansion needs the high-margin services mix, not just iPhone units 📱
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u/value_vic12h
22% iPhone growth off a hardware company is wild. Services miss is a rounding error next to that.
11
u/dip_diana12h
iPhone strength is real but I want services back above 20% growth before I add more. 👀
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