Strong iPhone sales propel Apple's fiscal Q3 results past Wall Street's expectations

Apple posted a solid fiscal third quarter on Thursday, climbing past Wall Street's expectations thanks to strong sales of the iPhone and MacBook computers.

Apple raised the prices of its Macs and iPads last month, citing a memory-chip shortage brought on by the artificial intelligence boom. The company had called the demand spike an “unprecedented challenge” for the consumer electronics industry. While it hasn't yet raised iPhone prices, analysts and consumers expect that to happen later this year.

The maker of the iPhone and iPad said Thursday it earned $29.79 billion, or $2.02 per share, in the April-June period. That is up 27% from $23.43 billion, or $1.57 per share, in the same period a year earlier.

Revenue grew 16% to $$109.42 billion from $94.04 billion.

Analysts, on average, were expecting earnings of $1.89 per share on revenue of $109 billion, according to a poll by FactSet. Tariff refunds of 11 cents per share contributed to the quarter's earnings.

“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” said Tim Cook, Apple’s CEO.

Shares of Cupertino, California-based Apple, which recently regained its title as the world's most valuable company from Nvidia, fell $7.52, or 2.3%, to $325.91 in after-hours trading.