Apple reported a strong start to the year, crediting rising demand for its latest iPhone lineup for better-than-expected financial results.
The company reported revenue of $111.2 billion in the three months ended March, up 17% from the same period last year, according to its latest earnings report. The growth was driven in large part by the iPhone 17 series, which management said has reached an unprecedented level of popularity.
Speaking about the performance, CEO Tim Cook described the demand as “extraordinary” and noted that the line-up was the company’s biggest success to date. Apple claims that its latest smartphones outperform all previous generations. The company’s chief financial officer, Kevan Parekh, told the Financial Times: “The iPhone 17 family is now the most popular line in our history.”
While Apple didn’t specify the exact metric behind the statement, the company said the lineup helped it gain market share during the quarter.
iPhone sales rose more than 20% year-over-year to $57 billion, underscoring the extent of demand. China played a key role, with sales in the region rising 28% to $20.5 billion, signaling a strong recovery in one of Apple’s most important markets.
The leadership transformation comes at a high point
The strong results come just a few months before a major change in leadership.
John Ternus, Apple’s head of hardware engineering, is expected to take over as CEO in September, the first such transition in more than a decade. Ternus made his first public remarks to investors during the earnings call, saying, “We have an incredible roadmap ahead of us,” according to The New York Times.
He also emphasized continuity in Apple’s approach and pledged to maintain the company’s financial discipline. Cook, who will move into the role of chairman, said the timing of the transition was ideal given the company’s strong performance, adding: “This is the right time to transition.”
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Growth outside of iPhone, but at a slower pace
While the iPhone led the charge, other parts of Apple’s business posted more modest gains. Mac revenue rose roughly 6% to $8.4 billion, services including iCloud and the App Store rose to $31 billion, and the wearables and other hardware categories remained relatively flat.
However, Cook highlighted strong interest in newer products such as the cheaper MacBook Neo, which he described as “off the charts” demand. Despite its financial strength, Apple faces constant questions about its AI strategy and cost pressures.
Unlike competitors who invest heavily in building their own AI systems, Apple has chosen to work with companies like Google and OpenAI to support 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 affect margins later this year. Cook noted that 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, beating analysts’ expectations, according to the FT. Even so, investors remain cautious. Concerns remain about 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, cost and the wider wireless charging ecosystem.