In the latest quarter for the tech giant, Apple’s iPhone sales and Services revenue took center stage, yet the Mac quietly excelled—boosted by the increasing demand for AI tasks.

Wall Street analysts had anticipated Mac revenue to be in the low $8 billion range, but Apple disclosed $8.4 billion for the second quarter ending March 28—a significant triumph for a non-core aspect of the tech titan’s operations. Additionally, prior to the earnings report, investors thought Mac sales would remain relatively unchanged year-over-year. Contrary to this belief, the company reported a 6% increase in Mac sales annually. Total revenue reached $111.2 billion, marking a 17% rise compared to the same timeframe last year.

Apple attributed part of the Mac expansion to recent product launches, such as the well-received MacBook Neo. However, these appealing, vibrant computers were available for purchase for only a few weeks following the start of preorders on March 4. In reality, most units were shipped from mid to late March, with some demand potentially shifting into April due to certain models selling out.

During the Q2 earnings call on Thursday, Apple CEO Tim Cook informed analysts that demand for the Neo was “off the charts” and exceeded Apple’s expectations. He also highlighted that the quarter set a record for new Mac customers, partially attributed to the Neo.

Cook linked the growth in Mac sales to its utilization for operating local AI models, such as OpenClaw—something that took Apple somewhat by surprise as Mac mini and Mac Studio devices recently sold out.

“Both of these are incredible platforms for AI and agentic tools, and the customer recognition of that is happening more rapidly than we had forecasted, leading to greater than expected demand,” Cook stated regarding these Mac sales. He also mentioned that the Mac mini became the best-selling desktop in China—a market currently experiencing a frenzy over OpenClaw.

However, Mac revenue remained unchanged on a quarter-over-quarter basis, indicating that this newfound demand is yet to mature. Cook indicated it might take Apple “several months” to achieve a supply-demand equilibrium for the Mac mini and Studio models.

“We’re not at a point where we’re claiming this [constraint] will conclude shortly. This isn’t due to a specific issue, except that we simply underestimated the demand,” Cook clarified.

Enterprise interest in the Mac also played a role. Apple highlighted a few larger firms, including Perplexity, that have adopted Mac as their favored platform for developing enterprise-level AI assistants.

He additionally stated that Apple was “supply constrained on the MacBook Neo,” and that certain school systems, such as Kansas City Public Schools, are replacing Chromebooks with the Neo.