Apple delivered its strongest June quarter on record, reporting $109.4 billion in revenue and surpassing analysts' estimates of $108.65 billion. The results mark the company's final earnings report before CEO Tim Cook steps down on September 1 after 15 years at the helm.

A 22% surge in iPhone sales — Apple's largest revenue category — paired with record spring-quarter Mac revenue, propelled the results. Tariff refunds provided an additional boost, contributing roughly 5% to profit during the period.

Beyond the financial figures, Cook sat down for an interview following the report to discuss Apple's stance on open-source artificial intelligence, the trajectory of U.S.–China relations, escalating memory chip costs, and the legacy he leaves behind after a decade and a half leading the company.

Cook on Open-Source AI and Apple's Pragmatic Approach

Cook said he has "nothing negative" to say about open-source AI models, describing them as "useful." His remarks come amid an intensifying industry-wide debate over whether the most powerful AI systems should remain proprietary or be made more broadly accessible to developers.

That debate has gained fresh urgency after Chinese AI company Moonshot launched Kimi K3, a new model that has drawn attention for performance rivaling some of the most advanced systems from Anthropic and OpenAI.

Apple, for its part, is preparing to launch its long-awaited AI-powered Siri this fall using Google's Gemini. The launch will rank among the first major product milestones under incoming CEO John Ternus, making it an early test of Apple's AI strategy under new leadership. Cook's comments suggest Apple intends to remain pragmatic rather than ideological in selecting the models that power its products — a notable posture for a company that has traditionally maintained tight control over its hardware and software ecosystem. The rapidly evolving AI landscape may require Apple to draw on a broader range of external technologies.

China: A Critical Market and Strategic Priority

China remains central to both Apple's AI strategy and its broader business.

"In terms of the U.S.–China relationship, I was over in April for the state dinner, and I think the engagement between the countries is really good, and I've got a favorable view," Cook said. "And I'm very optimistic at this point about where the relationship is."

Apple Intelligence has finally received approval in China after a delay of nearly two years compared with its U.S. launch. The approval could help Apple compete more effectively in one of its largest markets, where domestic smartphone manufacturers such as Huawei and Xiaomi have moved swiftly to integrate generative AI features into their devices.

Apple's China sales climbed 22% during the spring quarter to $18.81 billion. Even with that sharp increase, revenue still fell short of analysts' estimates of more than $19.5 billion in what remains Apple's third-largest market.

Tariff Refunds Reinvested in U.S. Manufacturing

Tariff refunds provided another lift to the quarter. Cook said Apple is channeling those funds back into domestic production.

"We're taking our tariff refunds and reinvesting those in the United States' advanced manufacturing," he said.

Apple has already committed to spending $600 billion over four years on the U.S. economy. The reinvestment strategy allows the company to frame the refunds not merely as a short-term earnings benefit but as additional support for its long-term domestic manufacturing plans — commitments that have taken on added political salience as U.S. trade policy continues to pressure technology companies to localize production.

Rising Memory Costs and Mac Performance

At the same time, Apple is grappling with a sharp rise in memory chip expenses. The company recently raised prices on select Mac computers and iPads by as much as $300, as memory chip prices have soared by up to 600% over the past two years.

"As I'd mentioned on the call last time around, the memory costs were higher in March than December quarter, and then in June they were significantly higher than in the March quarter," Cook noted.

Those escalating costs arrive at a moment when artificial intelligence is driving surging demand for greater computing power and memory capacity across the semiconductor industry, squeezing margins for device makers that depend on high-volume memory procurement.

Despite the price increases on certain devices, Cook said Apple's new lower-priced MacBook Neo, which starts at $699, was the company's bestselling computer in the United States during its first full quarter on the market. Demand for Apple's higher-powered Mac Studio computers also surged, creating supply shortages and helping push Mac revenue above $10 billion for a new spring-quarter record.

Leadership Transition and Reflections

Cook will step down as chief executive on September 1 after leading Apple for 15 years. He will remain chairman, while John Ternus, Apple's hardware engineering chief who has overseen the development of products spanning iPhone, iPad, and Mac for over a decade, succeeds him as CEO.

Cook became chief executive in 2011, succeeding Apple co-founder Steve Jobs. Under his leadership, Apple's market value has increased by more than 1,000%. This week, the company became only the second corporation to surpass $5 trillion in market value, briefly overtaking Nvidia to reclaim the title of the world's most valuable company.

Reflecting on his tenure, Cook said, "I've had an incredible opportunity to work with people that I love to work with ... and it's just been the privilege of a lifetime."

Asked how he hopes to be remembered, Cook demurred. "How people will write about that will be theirs to decide," he said. "But for me, it's been a privilege."

Cook arrived in the top role amid skepticism that a supply chain expert could sustain the product vision and culture synonymous with Jobs. Fifteen years later, he departs leaving a company operating at a scale few could have envisioned in 2011 — one now entering a new era shaped by artificial intelligence, geopolitical competition, and the ongoing challenge of sustaining growth as the world's most valuable consumer technology franchise.