Apple has posted strong results for its quarterly earnings and forecast sales that beat expectations, even as ‌the company expects to continue to face chip supply constraints.

Apple executives said they expect sales growth of 14 per cent to 17 cent in the current fiscal third quarter, which was above Wall Street estimates ‌of 9.5 per cent growth to $US102.93 billion, according to data from LSEG.

Earlier, Apple reported better-than-expected second-quarter results, with customers showing eagerness to buy a new MacBook model driven by incoming CEO John Ternus, while supply constraints hindered iPhone sales.

Apple said revenue rose about 17 per cent to $US111.18 billion for the fiscal second quarter ended March 28. 

Sales of the iPhone, still the company’s best-selling product nearly 20 years after its introduction, were $US56.99 billion, slightly less than estimates of $US57.21 billion, according to LSEG data, after the biggest revamp of the lineup since the iPhone X in 2017.

Apple Chief Financial Officer Kevan Parekh also said the company would no longer aim to bring its net cash – its cash minus debt – to a net neutral position. Apple embarked on that goal in 2018 but still had $US54 billion in net cash at the end of the first fiscal quarter in January.

Apple ‌CEO Tim Cook said ‌iPhone sales were held back in ⁠the quarter by supply constraints for the advanced processor chips that form the brains of the device. The iPhone 17 family’s chips are made on ​a variant of the same Taiwan Semiconductor Manufacturing Co chip manufacturing technology as many leading AI chips.

“The demand was off the charts. And there’s just a little less flexibility in the supply chain at the moment for getting more parts,” Cook told Reuters.

The iPhone 17 family of devices, plus the iPhone Air, was spearheaded by incoming CEO Ternus, who will take over from Cook in September.

Under Ternus, Pro models gained more features but also a higher price tag, while entry-level models such as the 17e and base model iPhone 17 held prices steady relative to their storage capacity.

That strategy, along with massive buying power, has helped Apple navigate higher memory chip prices so far. But memory costs will catch up to Apple starting in the current quarter ‌ending in June.

“We expect significantly higher memory costs,” Cook said during a conference call with analysts. “Where we don’t ​give colour beyond June, ‌I can tell you that beyond the June quarter, we believe memory costs will drive an increasing impact on our business.”

Investors are waiting to hear more about Apple’s plans for Siri, its voice assistant that it plans to improve with Google technology.

While Apple is not spending tens of billions of dollars per quarter on AI like its rivals, its research and development costs were up 33.5 per cent to $US11.42 billion in the fiscal second quarter.

Apple’s services business, which includes revenue from its App Store, which has been under regulatory scrutiny in Europe and elsewhere, generated $US30.98 billion in revenue for the fiscal ​second quarter, above analyst estimates of $US30.39 billion.

Sales of iPads were $US6.91 billion, compared with estimates of $US6.66 billion, and wearables, which include the Apple Watch, accounted for $US7.9 billion in revenue, compared with expectations of $US7.7 billion, according to LSEG data.

Apple’s ​greater China sales were $US20.5 billion, beating analyst estimates of $US19.45 billion, ⁠according to Visible Alpha data.

with AP

Elon Musk has wrangled with Sam Altman’s lawyer over the timing ‌of his decision to sue OpenAI and whether he knew about discussions to turn it into a for-profit company, as he was cross-examined in a trial over his lawsuit that could determine the future of the ChatGPT maker.

The world’s richest ‌person alleges OpenAI, its co-founder and CEO Sam Altman and its president Greg Brockman wooed his $US38 million ($A53 million) in donations and personal help by promising to build a nonprofit that would prioritise safe development of AI, before pivoting to create a for-profit entity ‌to enrich themselves.

William Savitt – a lawyer for OpenAI, Altman and Brockman – pressed Musk on whether he had read a term sheet that Altman forwarded on August 31, 2017, relating to OpenAI’s shift from a nonprofit to a for-profit overseen by a nonprofit.

“My testimony is I didn’t read the fine print, just the headline,” said Musk, wearing a dark suit, dark solid tie and white shirt.

OpenAI has said Musk, the CEO of Tesla and SpaceX, is driven by a compulsion to control OpenAI and is bitter about the company’s success after he left its board in 2018. They have also said he did not prioritise safety issues while with the company, and that he is trying to bolster his ‌own AI company, SpaceX unit ‌xAI, which lags OpenAI in user ⁠adoption.

OpenAI spearheaded widespread use of AI with its ChatGPT chatbot and has been raising billions of dollars from investors to build out its computing power ​ahead of a potential trillion-dollar IPO. Musk is seeking fundamental changes to the governance of the company as well as $150 billion in damages.

At times, Musk expressed frustration with Savitt’s cross-examination.

“Few answers are going to be complete, especially when you cut me off all the time,” Musk said.

US District Judge Yvonne Gonzalez Rogers later admonished Savitt for not letting Musk answer a question, but rejected Musk’s complaints that the lawyer was leading the questioning.

Musk was asked why he did not sue OpenAI earlier, as well as how and why he did not realise it was going to become a for-profit entity. Savitt repeatedly pointed to emails sent to Musk from other OpenAI founders that show them discussing making OpenAI’s technology closed-source ⁠at some point or making money from it.

“I was reassured by Sam Altman and others that OpenAI would continue as a ‌nonprofit,” Musk said.

Under questioning, Musk ​also said his company xAI used OpenAI to train its own models, adding: “It is standard practice to use other AIs to validate your AI.”

Altman and Brockman were in the courtroom for much of Musk’s testimony, watching intently. Musk was dismissed ​after more than two hours of questioning, followed by his top aide Jared Birchall taking the stand.

OpenAI, founded in 2015, has evolved from a nonprofit research lab in Brockman’s apartment to a company worth more than $US850 billion that is planning a potential initial public offering.

Musk is seeking the $US150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI’s charitable arm. Musk ​also ​wants OpenAI to revert to being a nonprofit, with Altman and Brockman removed as officers and Altman ​removed from its board. Musk’s claims include breach of charitable trust and unjust enrichment.

The trial started ​on Monday and is expected to last several weeks.

Elon Musk has wrangled with Sam Altman’s lawyer over the timing ‌of his decision to sue OpenAI and whether he knew about discussions to turn it into a for-profit company, as he was cross-examined in a trial over his lawsuit that could determine the future of the ChatGPT maker.

The world’s richest ‌person alleges OpenAI, its co-founder and CEO Sam Altman and its president Greg Brockman wooed his $US38 million ($A53 million) in donations and personal help by promising to build a nonprofit that would prioritise safe development of AI, before pivoting to create a for-profit entity ‌to enrich themselves.

William Savitt – a lawyer for OpenAI, Altman and Brockman – pressed Musk on whether he had read a term sheet that Altman forwarded on August 31, 2017, relating to OpenAI’s shift from a nonprofit to a for-profit overseen by a nonprofit.

“My testimony is I didn’t read the fine print, just the headline,” said Musk, wearing a dark suit, dark solid tie and white shirt.

OpenAI has said Musk, the CEO of Tesla and SpaceX, is driven by a compulsion to control OpenAI and is bitter about the company’s success after he left its board in 2018. They have also said he did not prioritise safety issues while with the company, and that he is trying to bolster his ‌own AI company, SpaceX unit ‌xAI, which lags OpenAI in user ⁠adoption.

OpenAI spearheaded widespread use of AI with its ChatGPT chatbot and has been raising billions of dollars from investors to build out its computing power ​ahead of a potential trillion-dollar IPO. Musk is seeking fundamental changes to the governance of the company as well as $150 billion in damages.

At times, Musk expressed frustration with Savitt’s cross-examination.

“Few answers are going to be complete, especially when you cut me off all the time,” Musk said.

US District Judge Yvonne Gonzalez Rogers later admonished Savitt for not letting Musk answer a question, but rejected Musk’s complaints that the lawyer was leading the questioning.

Musk was asked why he did not sue OpenAI earlier, as well as how and why he did not realise it was going to become a for-profit entity. Savitt repeatedly pointed to emails sent to Musk from other OpenAI founders that show them discussing making OpenAI’s technology closed-source ⁠at some point or making money from it.

“I was reassured by Sam Altman and others that OpenAI would continue as a ‌nonprofit,” Musk said.

Under questioning, Musk ​also said his company xAI used OpenAI to train its own models, adding: “It is standard practice to use other AIs to validate your AI.”

Altman and Brockman were in the courtroom for much of Musk’s testimony, watching intently. Musk was dismissed ​after more than two hours of questioning, followed by his top aide Jared Birchall taking the stand.

OpenAI, founded in 2015, has evolved from a nonprofit research lab in Brockman’s apartment to a company worth more than $US850 billion that is planning a potential initial public offering.

Musk is seeking the $US150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI’s charitable arm. Musk ​also ​wants OpenAI to revert to being a nonprofit, with Altman and Brockman removed as officers and Altman ​removed from its board. Musk’s claims include breach of charitable trust and unjust enrichment.

The trial started ​on Monday and is expected to last several weeks.

Sydney home prices have tumbled by the largest amount in 18 months as the Iran war and Reserve Bank rate hikes amplified a downturn in the nation’s two biggest housing markets.

Median home values in Sydney and Melbourne fell 0.6 per cent in April, property data firm Cotality revealed on Friday.

Nationwide, home prices rose 0.3 per cent, but the pace of growth was slowing across the board as headwinds blowing in from the Strait of Hormuz gathered strength.

Affordability and serviceability constraints were weighing on demand, Cotality head of research Gerard Burg said.

The RBA’s two back-to-back rate hikes, with a third likely on Tuesday, and uncertainty driven by the Middle East crisis, had hit sentiment, he said.

“When things get uncertain, people have a tendency to sit on their hands and wait and see, and that’s a pretty negative trend for a high-value purchase, like making a home purchase,” Mr Burg told AAP.

The median Sydney dwelling was still the nation’s most expensive, at $1.29 million, but Brisbane and Perth are rapidly gaining ground.

The median Brisbane home, which climbed 1.2 per cent over the month to $1.12 million, is now worth 86 per cent of the Sydney median, compared to 76 per cent a year prior.

In Perth, the median dwelling jumped 2.1 per cent to $1.04 million, representing 80 per cent of the Sydney benchmark compared to 68 per cent a year earlier.

On the other side of the scale, the supply picture was improving, particularly in Sydney and Melbourne, where the total number of listings has pushed above the five-year average.

“It’s pointing to a market that’s a bit better balanced than was the case across much of last year,” he said.

Mr Burg said the improvement in supply in Sydney and Melbourne was mainly driven by more vendors looking to sell before property values fall much further, rather than a material increase in new builds on the market.

Australia’s chronic supply imbalance would continue to put a floor under prices for several years to come, beyond the short-term cycle.

“When you take a look at the significant increase in costs that we’ve seen over the last couple of years, just making new projects feasible has become increasingly challenging,” he said.

The National Housing Supply and Affordability Council warned supply chain disruptions caused by the Middle East conflict could shrink the housing pipeline by 33,000 new homes over the next three years.

As a large user of diesel, the construction sector was particularly vulnerable to the oil shock, Housing Minister Clare O’Neil told a Property Council summit on Thursday.

The government was working to secure more fuel supplies, but also looking to make it easier to build by reducing the regulatory burden, she said.

“I absolutely believe there is far too much red tape and regulation in housing and that, if we are going to support you to build the homes our country needs, we’re going to have to wind that back,” Ms O’Neil said.

She said a review into the National Construction Code identified three priorities: making the document easier to use with AI; reducing regulatory variation across state lines; and clamping down on new additions to the code that added complexity and cost.

But opposition housing spokesman Andrew Bragg said for all its talk about slashing red tape, Labor had little to show for it.

The construction code was layered with gold plating, like mandating grab rails in bathrooms for young home builders, he said.

“Only in Australia would you find so much red tape as to make a cheap house illegal.”

The United States economy accelerated at the start of 2026, expanding at a modest 2 per cent pace from January through March after recovering from last northern autumn’s 43-day federal government shutdown.

But the outlook is clouded by the Iran war.

The Commerce Department reported on Thursday that gross domestic product – the country’s output of goods and services – rebounded from a lacklustre 0.5 per cent expansion the last three months of 2025.

The federal government’s spending and investment grew at a 9.3 per cent annual rate in the first quarter, adding more than half a percentage point to growth after lopping off 1.16 percentage points in fourth-quarter 2025.

Growth in consumer spending, which accounts for 70 per cent of US economic activity, slowed to 1.6 per cent in the first quarter from 1.9 per cent at the end of 2025.

Spending on goods, including food and clothing fell slightly. 

Spending on services slowed. 

But business investment, likely driven by spending in artificial intelligence, rose at an 8.7 per cent pace.

A weak housing market continues to weigh on the economy.

Residential investment fell at an 8.0 per cent annual pace – the fifth straight quarterly drop and the biggest since the end of 2022.

Excluding housing, non-residential investment surged 10.4 per cent, the biggest jump in nearly three years.

An uptick in imports, which rose at an annual rate of 21.4 per cent from January-March, slashed more than 2.6 percentage points off first-quarter growth.

A recently released prisoner has been arrested after a search for an abducted girl ended in tragedy.

The search for Jefferson Lewis, 47, had intensified following the discovery of a child’s body about 5km from where a five-year-old disappeared near Alice Springs at the weekend.

Police said it was believed to be that of the missing girl, referred to as Kumanjayi Little Baby at her family’s request.

“A short time ago, the Northern Territory Police Force located and arrested Jefferson Lewis at a residence in Alice Springs,” authorities said on Thursday evening.

“Further information will be provided early in the morning.”

Earlier on Thursday, police had sent an ominous message to the girl’s accused abductor and killer.

“We’re coming for you,” Northern Territory Police Assistant Commissioner Peter Malley said.

“The focus is to locate Jefferson Lewis; it is our sole job in this investigation right now.”

The girl went missing after being put to bed at a residence in the Old Timers camp near Alice Springs on Saturday night.

Lewis is accused of abducting her just six days after being released from prison.

It sparked one of the NT’s largest investigations with almost 200 people scouring harsh desert country for the non-verbal girl and Lewis.

The child’s body was found about noon on Thursday, on day five of the search.

A pair of children’s underwear found during the investigation had been linked by forensic analysis to both Lewis and the girl, police said.

Police are adamant Lewis had been helped by people in the community and remained in the Alice Springs area.

“To the family of Jefferson Lewis: we believe he has murdered this child – do not assist him,” Mr Malley said.

“Get him to the police station and we’ll look after him.”

Lewis was sentenced to 64 months in prison, between 2016 and 2025, for offences including aggravated assaults, breaching domestic violence orders, bail and resisting police.

NT Chief Minister Lia Finocchiaro did not rule out a reward or policy response as police hunted Lewis, after leading condolences for the girl’s heartbroken family.

“Everything is on the table. We will be led by the police investigation,” she said.

“A poor young lady has passed away, and the police are now doing the work to stop this happening again, to make sure that the person who did this is caught.”

A post-mortem examination, expected to be conducted within days, will be crucial in determining the cause and timing of the girl’s death, police said.

A coronial process kicked off as the girl’s family reeled from the tragedy.

Kumanjayi Little Baby’s devastated family paid tribute to their beloved girl, thanking everyone who took part in the search.

“I know you are in heaven with the rest of the family,” her mother said in a statement.

“Me and your brother will meet you one day. We are giving our lives to Jesus.

“It’s going to be so hard to live the rest of our lives without you.”

1800 RESPECT (1800 737 732)

National Sexual Abuse and Redress Support Service 1800 211 028

13YARN 13 92 76

Lifeline 13 11 14

The Bank of England has kept its main interest rate on hold at 3.75 per cent Thursday as policymakers assess the economic impact of the Iran war and Tehran’s effective closure of the Strait of Hormuz, through which a fifth of the world’s crude passes.

The decision on Thursday was widely expected and echoes the decision of the US Federal Reserve on Wednesday to keep rates unchanged. 

It was the same theme in Japan on Tuesday. 

Minutes from the meeting showed that eight of the nine rate-setters voted to keep rates on hold while one member opted for a quarter-point hike.

“We think this is a reasonable place given the situation of the economy and the unpredictability of events in the Middle East,” said bank governor Andrew Bailey. 

“We’ll continue to monitor the situation and its impact on the UK economy very closely. 

“Whatever happens, our job is to make sure that inflation gets back to the two per cent target after the initial impact of the war on energy prices has passed.” 

Before the start of the Iran war on February 28, there had been an expectation in financial markets that the Bank of England would cut rates given that inflation was predicted to fall back towards its two per cent target. 

The war has since upended the bank’s predictions and wider global economic forecasts as the price of oil and other costs have spiked sharply higher. 

South Korea and Australia have agreed to strengthen co-operation in the energy sector as the countries deal with fuel supply disruption from the Iran war. 

Both countries decided to “maintain a stable, secure and reliable supply of diesel and other liquid fuels” following a meeting in Seoul on Thursday between Australian Foreign Minister Penny Wong, her South Korean counterpart Cho Hyun, and Energy Minister Kim Jong-kwan.

Wong’s visit to Seoul is part of a three-country tour that also includes China and Japan, as Australia co-ordinates ​with regional powers on energy security.

Crude oil prices have soared since the US-Israeli began its attack on Iran on February 28, which resulted in Tehran effectively closing the Strait of Hormuz, through which a fifth of the world’s oil flows.

Australia and South Korea also agreed to notify and consult each other in the event of potential trade disruptions amid “deep concern” about the impact of the situation in the Middle East on key sectors of raw materials, according to a joint statement.

“The central pillar of our Comprehensive Strategic Partnership is a long and trusted economic and energy resource partnership, grounded in a shared commitment to open markets and rules-based trade, which underpins our prosperity and economic security,” the countries said.

Canberra is Seoul’s main supplier of liquefied natural gas, as well as an important supplier of critical minerals, while South Korea provides Australia with refined petroleum products and diesel.

South Korea was ​a key energy partner of Australia as the largest supplier of diesel and third-largest source of ​jet ​fuel, Wong said. 

“We depend on you, and you depend on us,” Wong said, in describing the need for close co-ordination and Australia’s commitment as a reliable supplier ​of food, energy and other commodities to South Korea. 

South Korea is particularly vulnerable to the conflict in Iran, as it imports 70 per cent of its crude oil from the Middle East, with more than 95 per cent of these volumes passing through the Strait of Hormuz. 

It also obtains 20 per cent of its liquefied natural gas from the region.

In Beijing on Wednesday, Wong said the Chinese government agreed to co-operate with ‌Australian businesses on jet fuel shipments.

“We believe this is an ‌important step, but it is the first step,” Wong told reporters in Beijing, adding that the aim of her trip was to press for Chinese co-operation “in particular for the provision of liquid fuels”.

In a meeting with her Chinese counterpart Wang Yi, Wong ​said she “made ‌the point that the imports China supplies to Australia, including jet fuel, support the Australian ​resources sector, which in turn helps to maintain the flow of commodities” that are crucial to the bilateral trading ties.

with Reuters

The Australian bourse has continued its losing streak into its eighth-straight day as oil prices rocketed and the realities of a prolonged energy shock hit home for Woolworths and other exposed businesses.

The S&P/ASX200 finished Thursday down 21.2 points, or 0.2 per cent, to 8665.8 while the broader All Ordinaries eased 28.1 points, or 0.32 per cent, to 8887.6.

Brent crude prices soared above $US125 a barrel – the highest levels reached since the Middle East war began – following reports of a possible military escalation by US President Donald Trump amid gridlocked talks with Iran.

Moomoo Australia and New Zealand market strategist Michael McCarthy said markets were caught in a bind.   

“There was a lot of optimism, particularly coming out of the US, but shared by some investors around the globe, that the conflict in the Middle East would be quickly resolved,” Mr McCarthy told AAP.

“That confidence is being eroded.” 

Australian oil and energy stocks closed higher but weakening sentiment weighed on consumer staples and mining stocks.

Australian supermarket chain Woolworths warned higher fuel costs due to the Middle East war were putting customers under pressure and adding to operating costs, clouding its earnings outlook with uncertainty.

Shares in the grocery giant fell 7.8 per cent, with competitor Coles down 3.6 per cent. 

The two big supermarkets have also been accused of deceiving customers with misleading discount pricing claims by the consumer watchdog, which is pursuing them in the Federal Court.

Miners were broadly lower on weaker gold prices and a deteriorating global growth outlook. 

Diversified miner South32 dived 5.4 per cent after reporting cost overruns and delays on one of its projects, while lithium and iron ore player Mineral Resources defied the trend with a 2.9 per cent gain after upgrading full-year guidance across parts of the business.

BHP fell 2.2 per cent to $53.72, Rio Tinto slipped 2.0 per cent to $167.40 and Fortescue dipped 2.8 per cent to $19.65. 

Australian tech was mixed after reporting from four of the Magnificent Seven stocks showcased a rosy outlook for the artificial intelligence boom.

Mr McCarthy said Australian tech stocks with AI exposure were performing best, including data centre operator NextDC, up 1.7 per cent, and logistics tech company WiseTech, which gained 3.4 per cent. 

“It’s not buy all tech, it’s buy particular tech,” he said.

Financial stocks finished higher, with ANZ outperforming the other Big Four banks, up 1.3 per cent to $36.65. 

CommBank gained 0.9 per cent to $173.66, Westpac lifted 0.7 per cent to $38.50 and NAB climbed 0.5 per cent to $39.88. 

Exchange operator ASX Ltd stocks climbed 5.1 per cent after group executive for markets and listings Darren Yip was appointed interim chief executive.

The Australian dollar is buying 71.16 US cents, down from 71.58 US cents at close on Wednesday.

ON THE ASX:

*The S&P/ASX200 finished down 21.2 points, or 0.2 per cent, to 8665.8

*The broader All Ordinaries eased 28.1 points, or 0.32 per cent, to 8887.6

One Australian dollar trades for:

* 71.16 US cents, from 71.58 US cents at 5pm AEST on Wednesday

* 114.28 Japanese yen, from 114.29 Japanese yen

* 60.98 euro cents, from 61.20 euro cents

* 52.79 British pence, from 53.03 British pence

*122.09 NZ cents, from 112.08 NZ cents