Apple has reported a powerful start to the year, crediting booming demand for its latest iPhone lineup for driving stronger-than-expected financial results.
The company posted revenue of $111.2 billion for the three months ending in March, a 17% jump from the same period last year, according to its latest earnings report. Growth was fueled largely by the iPhone 17 series, which executives say has reached an unprecedented level of popularity.
Speaking about the performance, chief executive Tim Cook described demand as “extraordinary,” noting the lineup had become the company’s biggest success to date. Apple claims its latest smartphones are outperforming every previous generation. The company’s chief financial officer, Kevan Parekh, told Financial Times, “The iPhone 17 family is now the most popular line-up in our history.”
While Apple did not clarify the exact metric behind that statement, the company indicated that the lineup helped it gain market share during the quarter.
iPhone revenue rose more than 20% year-on-year to $57 billion, underlining the scale of demand. China played a key role, with sales in the region climbing 28% to $20.5 billion, signaling a strong rebound in one of Apple’s most important markets.
Leadership transition comes at a high point
The strong results arrive just months before a major leadership shift.
John Ternus, Apple’s head of hardware engineering, is set to take over as CEO in Sept., the first such transition in over a decade. Ternus made his first public remarks to investors during the earnings call, saying: “We have an incredible road map ahead,” per The New York Times.
He also emphasized continuity in Apple’s approach, pledging to maintain the company’s financial discipline. Cook, who will move into a chairman role, said the timing of the transition was ideal given the company’s strong performance, adding, “This moment for the transition is the right one.”
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Growth beyond iPhone, but at a slower pace
While the iPhone led the charge, other parts of Apple’s business showed more modest gains. Mac revenue rose about 6% to $8.4 billion, services, including iCloud and the App Store, grew to $31 billion, and wearables and other hardware categories remained relatively flat.
However, Cook highlighted strong interest in newer products like the lower-cost MacBook Neo, which he described as seeing “off the charts” demand. Despite its financial strength, Apple faces ongoing questions about its AI strategy and cost pressures.
Unlike rivals that invest heavily in building their own AI systems, Apple has opted to partner with companies like Google and OpenAI to power its features. Cook said the company’s approach is to make AI “an essential and intuitive part of our devices,” while prioritizing user privacy.
At the same time, Apple warned that rising memory chip costs, driven by demand for AI infrastructure, could impact margins later this year. Cook noted these costs are expected to have an “increasing impact on our business.”
Apple expects revenue to grow between 14% and 17% in the current quarter, outpacing analyst expectations, according to FT. Even so, investors remain cautious. Concerns linger around how Apple will sustain growth beyond the iPhone and whether its slower AI push could become a disadvantage.
Read more: Apple may drop MagSafe from future iPhones, as internal debate over the feature could reshape design, costs, and the broader wireless charging ecosystem.
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