By Lisa Eadicicco, CNN
(CNN) — Apple CEO Tim Cook is used to being asked about the company’s product strategy, tariffs and AI. But on Thursday’s earnings call, one analyst wanted to know: What advice would he give to his successor?
Apple on Thursday reported second-quarter earnings and what Cook said was the company’s “best March quarter ever.” It was also the first earnings event since the company announced Cook will step down as CEO in September, to be replaced by hardware engineering lead John Ternus.
Apple once again surpassed expectations, with $111.2 billion in revenue, a 17% increase compared to last year. IPhone revenue hit $57 billion, roughly in line with analyst estimates and up 22% compared to a year ago.
The numbers highlight the blockbuster business Ternus will inherit – and the pressure he’ll face to grow Apple’s core products while creating new ones.
On Thursday’s earnings call, Ternus briefly outlined his approach as CEO based on what he’s learned from Cook.
“As you know, one of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness and discipline when it comes to the financial decision making of the company,” he said, adding that he plans to continue that approach when he takes the reins.
Apple shares initially dipped before climbing more than 3% in after-hours trading on Thursday.
Apple’s AI plans
Analysts and investors have grilled Apple about its AI plans over the past year, including how the technology could impact products like the iPhone.
Cook reiterated Thursday that weaving AI across Apple’s devices rather than developing standalone software tools sets the company apart.
Apple also said businesses are using the Mac for AI uses, including building and running agents. Kevan Parekh, Apple’s chief financial officer, listed AI startup Perplexity as one such Mac customer.
Ternus’s current role as senior vice president of hardware engineering could help the company compete in AI.
The company will announce AI advancements at Apple’s Worldwide Developer Conference in June, Cook said. Apple expects to see supply constraints in the June quarter because of increased AI-driven demand for the Mac Mini and Mac Studio.
A tough time for the tech industry
Supply constraints impacted the iPhone and Mac during the March quarter, and the Mac is expected to be more heavily affected in the June quarter, Apple said.
Computer makers have been grappling with memory shortages driven by AI data center demand, pushing global smartphone shipments down 4.1% in the first quarter, according to the market intelligence firm International Data Corporation.
Large companies like Apple have more resources and leverage with memory companies, giving them an advantage during the shortage, the IDC said this month.
Soon, it’ll be up to Ternus to navigate those relationships and Apple’s sprawling supply chain.
As executive chairman of the board, Cook will still hold influence, but he will likely fill an advisory role.
On Thursday, Cook gave Ternu