Apple was surprised by AI-driven demand for Macs

Apple’s iPhone sales and Services revenue were the stars of the show in the tech giant’s most recent quarter, but the Mac quietly outperformed — helped by growing demand for AI workloads. Wall Street investors had expected to see Mac revenue in the low $8 billion range, but Apple reported $8.4 billion in the second quarter ended March 28 — a notable beat for a non-core segment of the tech giant’s business. In addition, investors ahead of earnings believed that Mac sales would be essentially flat year-over-year. Instead, Mac sales were up 6% on an annual basis, the company told investors. The company’s total revenue was $111.2 billion, a 17% increase from the same period last year. Apple chalked up some of the Mac growth to recent product launches, including the well-received MacBook Neo. However, those fun, colorful computers were only on sale for a few weeks after the March 4 preorders began. Realistically, most units shipped mid- to late March, and some demand may have been pushed into April as certain models sold out. Apple CEO Tim Cook told analysts on the company’s Q2 earnings call on Thursday that customer demand for the Neo was “off the charts” and