On its quarterly earnings call, Apple remarked revenue growth in the current quarter would be between 14% and 17%, well above analysts’ estimates.

CEO Tim Cook cited ongoing demand for the iPhone 17 and Mac computers as driving the growth as the organization faces supply constraints from the memory crunch.

Apple shares jumped more than 3% on Friday after the iPhone maker reported better-than-expected quarterly results and issued revenue guidance for the current period that sailed past analysts’ estimates.

CEO Tim Cook, who is preparing to step down in September after 15 years at the helm, touted the company’s performance in the face of significant supply constraints due largely to the global memory crunch.

The business remarked late Thursday that revenue in the fiscal third quarter, which ends in June, will growth between 14% and 17% from a year earlier, while analysts were projecting growth of 9.5%. Apple is seeing continued demand from the iPhone 17 family, which Cook called the “most popular lineup in our history,” as well as for a number of Mac models.

In March, Apple released a lower-cost computer called the MacBook Neo, and Cook stated late Wednesday that customer response “has just been off the charts, with higher-than-expected demand.”

Analysts sought clarity from Cook, who noted the organization would “look at a range of options” to address soaring memory costs, a trend the CEO only sees intensifying. Investors didn’t get a lot of answers, but were mostly unconcerned. This also touches on aspects of dividends.

“That does create some risk, but after last night’s results, we feel much better about Apple’s ability to manage margins” than previously expected, wrote analysts at Morgan Stanley, in a note to clients on Friday. “It’s the single-greatest source of our estimates moving higher post-earnings.”

The analysts, who recommend buying the stock, lifted their earnings per share projection for the fiscal year to $8.89 from $8.63.

Prior to the bullish guidance issued on the earnings call, Apple reported a revenue and earnings beat for the fiscal second quarter. Revenue climbed 17% to $111.18 billion from $95.4 billion a year earlier. Analysts were expecting sales of $109.66 billion, according to LSEG.

The business topped estimates for Mac revenue, iPad revenue and services, but came up short on iPhone sales. Apple has continued to generate revenue growth as it bolsters its services business, which comes with much higher margins than hardware.

Services revenue in the quarter rose about 16% to $30.98 billion from $26.65 billion a year ago. Apple uses its massive customer base — and a total of over 2.5 billion active devices on the marketplace — to liquidate subscriptions to entertainment services, as well as to services for Apple Pay, iCloud and AppleCare. Furthermore, experts in bear market note the continued relevance.

Long stuck in the high 30s, Apple’s gross margin has been steadily moving up in recent years, reaching 49.3% in the latest quarter, up from 48.2% in the previous period. For the June quarter, Apple noted its gross margin will be between 47.5% and 48.5%.

KeyBanc analysts, who have the equivalent of a hold rating on the stock, remarked Apple’s margin forecast is “not showing the expected memory price crunch.”

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