Revenue jumps 16% in fiscal first quarter
Apple reported fiscal first-quarter earnings on Thursday that exceeded Wall Street expectations, with revenue rising 16% year over year. Shares edged higher in extended trading following the release.
For the quarter ended in December, Apple posted earnings per share of $2.84, above the $2.67 analysts expected. Revenue reached $143.76 billion, compared with consensus estimates of $138.48 billion.
iPhone drives results as demand surges
iPhone revenue climbed 23% year over year to $85.27 billion, significantly beating forecasts. Apple attributed the performance to strong demand for the iPhone 17 lineup released in September.
Chief executive Tim Cook described demand as “staggering,” marking a sharp reversal from the prior holiday quarter when iPhone sales declined slightly.
Apple’s active installed base grew to 2.5 billion devices, up from 2.35 billion a year earlier, underscoring the expanding opportunity for services and software monetization.
China posts standout performance
Sales in Greater China, including Taiwan and Hong Kong, surged 38% to $25.53 billion. Cook said growth was driven by strong iPhone upgrades and an increase in customers switching from rival brands.
Apple recorded an all-time high in iPhone upgraders in mainland China, alongside double-digit growth in new users.
Mixed results across product categories
Mac revenue declined 7% year over year to $8.39 billion, missing expectations despite the launch of updated MacBook Pro models. iPad revenue rose 6% to $8.60 billion, beating estimates, with Apple noting that half of buyers were first-time iPad customers.
Wearables, Home and Accessories revenue fell 2% to $11.49 billion, coming in below forecasts. Services revenue increased 14% year over year to $30.01 billion, broadly in line with expectations.
Outlook and AI investment
Chief financial officer Kevan Parekh said Apple expects March-quarter revenue growth of 13% to 16% year over year, above current market expectations, though the company anticipates constrained iPhone supply.
Apple spent $2.37 billion on capital expenditures during the quarter, while research and development costs rose to $10.89 billion as the company increased investment in artificial intelligence. Apple recently announced a partnership with Google to integrate the Gemini AI model into Apple Intelligence.
Apple returned nearly $32 billion to shareholders through dividends and share repurchases during the quarter.
