Apple Inc (NASDAQ:AAPL) delivered a strong fiscal Q1 report, beating expectations on both revenue and earnings. Growth returned in Greater China, with the iPhone 17 driving results and setting new revenue records. Global iPhone revenue exceeded $85 billion for the quarter, up 23% year over year, reflecting broad-based demand strength. Services also continued to perform well, generating approximately $30 billion in revenue and supporting overall profitability with a gross margin of 76.5%.
Mac and Wearables, Home, and Accessories saw year-over-year declines. Management attributed the weakness primarily to tough comparisons following last year’s M4 chip launch and supply constraints affecting AirPods Pro 3. Operating expenses continued to rise, though at a more measured pace relative to other mega-cap technology peers, reflecting Apple’s more restrained and hybrid approach to AI investment. Commentary on the longer-term roadmap for Apple Intelligence and the reported collaboration with Google was limited.
Guidance for fiscal Q2 gross margin of 48% to 49% came in stronger than expected, particularly given management’s acknowledgment of ongoing supply constraints and upward pressure from higher memory costs.
For more details, key highlights, and commentary, check out the high-level earnings summary.
